Eutelsat’s Paris-Rambouillet teleport. Photo: Eutelsat/Adrien Daste

Eutelsat Group reported 300 million euros ($335 million) in revenue in the third quarter of its 2024-25 fiscal year, down 1.9% year-over-year. 

Notably, Eutelsat reported a 10% year-over-year increase in Government Services revenue, but also had a lower renewal rate with the U.S. Department of Defense (DoD) in its Spring renewal campaign. Eutelsat reported a renewal rate with the U.S. DoD of less than 50% of the high renewal rate of previous quarters.

CFO Christophe Caudrelier told investors there was a “single sizable contract” with the U.S. government that was not renewed. Aside from that one non-renewal, the renewable rate was 70%. 

Caudrelier said the non-renewal  “reflects the change in the new presidential administration’s geographic prioritization for the Defense Department, with the additional context of efforts to cut government spending overall.” 

Caudrelier added that U.S. government spending represents between 50% to 60% of Eutelsat’s government business, but that proportion is decreasing as other governments outside the U.S. have increased interest in Eutelsat’s OneWeb solutions. 

Government Services reported 49.5 million euros ($55 million) of revenue during the quarter with growth of Low-Earth Orbit (LEO) services and increased demand from non-U.S. governments. 

Video saw the largest decline in the third quarter, down 6.4% year-over-year to 152 million euros ($170 million). 

Fixed Connectivity was down less than 1% year-over-year, at about 60 million euros ($67 million) of revenue. In Fixed Connectivity, Eutelsat reported there is continued growth for LEO-enabled connectivity solutions, but there are “more challenging conditions” for Geostationary Orbit (GEO) consumer broadband in Europe. 

Mobile connectivity was down 2.7% year-over-year, to 39.7 million euros ($44 million) due to lower GEO revenues. Despite the decline year-over-year, revenue in this segment was up 14% quarter-on-quarter with the ramp-up of LEO offerings. 

Eutelsat reported its backlog was at 3.7 billion euros ($4 billion) at the end of March, compared to 3.9 billion euros ($4.4 billion) a year ago, with the erosion of Video backlog “in the absence of major renewals.”