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Eutelsat Communications: Full Year 2022-23 Results

July 28, 2023

The Board of Directors of Eutelsat Communications (ISIN: FR0010221234 / Euronext Paris: ETL), chaired by Dominique D’Hinnin, reviewed the financial results for the year ended 30 June 2023.

Key Financial Data








Revenues - €m




"Operating Verticals" revenues reported - €m




"Operating Verticals" revenues at constant currency -€m




"Operating Verticals" revenues as per financial objectives1 - €m




Adjusted EBITDA2 - €m




Adjusted EBITDA - %2




Operating income - €m




Group share of net income - €m




Financial structure




Reported Discretionary Free Cash Flow - €m2




Adjusted Discretionary Free Cash Flow - €m2




Net debt - €m



-48.7 M€

Net debt/ Adjusted EBITDA2 - X



+0.08 pt

Backlog - €bn




Commenting on the Full-Year, Eva Berneke, Chief Executive Officer of Eutelsat Communications, said: “Fiscal Year 2022-23 has been a very solid year for Eutelsat, with revenues at the top end of our range of expectations, a high level of profitability and robust Free Cash Flow Generation. From a commercial point of view we have seen strong momentum in our Connectivity verticals, confirming our strategy of shifting our business model to address these new applications. Operationally Eutelsat has proven its technological credentials with a record level of satellite launches and service entries. In parallel, OneWeb, with who we are working closely to prepare our proposed combination has seen a similar commercial dynamic, with a 50% increase in its backlog since October 2022.

On the basis of the performance of the past year, Eutelsat confirms its standalone objectives for the current and outer years, and notably the long-awaited return to topline growth. With its industry-leading profitability and confirmed ability to generate a high level of Free Cash Flow, Eutelsat is in a strong position to make the combination with OneWeb a true success and I look forward to our joint future with confidence.”


  • FY 2022-23 Operating Vertical revenues of €1,136 and €1,157 million at the guidance rate3, at the upper end of expected range.
  • Sustained momentum in Mobile Connectivity with double-digit growth over the Full Year.
  • Robust financial performance with industry-leading Adjusted EBITDA margin of 73%.
  • Adjusted Discretionary Free Cash-Flow of €518m, comfortably within our expected range.
  • $382m proceeds related to Phase II of the C-Band transition recognized in late June 2023. Cash is expected to be received in Q1 FY 2023-24.
  • Successful entry into service of three satellites:
    • HOTBIRD 13F and HOTBIRD 13G assuring service continuity at our flagship 13° East video hotspot, with HOTBIRD 13G hosting an incremental EGNOS GEO-4 payload.
    • EUTELSAT E10B, with incremental 35 Gbps of HTS Ku-band capacity addressing demand in Mobile Connectivity, with firm pre-commitments from Intelsat and Panasonic; also ensuring service continuity for customers of EUTELSAT 10A.
  • All standalone objectives confirmed:
    • Operating Vertical revenues expected to grow from FY 2023-24 onwards (like-for-like), on the back of the entry into service of new in-orbit assets with firm precommitments.
    • Adjusted Discretionary Free Cash Flow expected at an average of €420 million per year over FY 2022-23 and FY 2023-24, equating to cumulative Adjusted DFCF generation of c.€1.4 billion over three fiscal years at a 1.00 €/$ rate.
  • Strong foundations to ensure the success of the proposed Eutelsat-OneWeb combination:
    • Strong commercial ramp-up of OneWeb with secured backlog of $900 million at end-June 2023, a $300m increase since October 2022.
    • Revenue objective of $50m by end-June 2023 attained.
    • Short-term adjustment of objectives for FY 2023-24.
    • EGM to approve the transaction expected to take place in late September 2023.


Note: As of June 30, 2023, the breakdown of the Operating Verticals revenues will evolve to better reflect the respective end markets which they address. The new framework will be altered from five verticals (Broadcast, Data & Professional Video, Government Services, Fixed Broadband and Mobile Connectivity) to four:

Video, henceforth encompassing Broadcast and professional Video, Fixed Connectivity, encompassing Data and Fixed Broadband, Mobile Connectivity, and Government services. Proforma quarterly data for FY 2021-22 and FY 2022-23 is provided in the Annexes of this Press Release.

In € millions

FY 2021-22

FY 2022-23









Government Services





Mobile Connectivity





Fixed Connectivity





Total Operating Verticals





Other Revenues6










EUR/USD exchange rate











Total revenues for FY 2022-23 stood at €1,131 million, down by 1.8% on a reported basis and down by 5.5% like-for-like.

Revenues of the five Operating Verticals (ie, excluding ‘Other Revenues’) stood at €1,136 million. They were down by 4.8% on a like-for-like basis, excluding a positive currency impact of €43 million. “Operating Verticals” revenues as per financial objectives (at a €/$ rate of 1.00) stood at €1,157m.

Fourth Quarter revenues stood at €286 million down 2.3% like-for-like. Revenues of the five Operating Verticals stood at €283 million, down 4.1% year-on-year and up 4.7% quarter-on-quarter on a like-for-like basis.

Note: Unless otherwise stated, all variations indicated below are on a like-for-like basis, ie, at constant currency and perimeter.

Video (62% of revenues)

FY 2022-23 Video revenues were down by 8.3% to €705 million, reflecting the impact of the early non-renewal of a capacity contract with Digitürk from mid-November 2022 as well as lower revenues in Europe related to volume reductions with certain resellers. They were also impacted by the effect of sanctions against Russian and Iranian channels, mainly in the Second Half.

On the commercial front, Eutelsat was selected by Orby Elevate for the distribution of its first mainstream English language Direct-to-Home (DTH) services in the United States, leveraging the unparalleled coverage of EUTELSAT WEST 117 West A over the US territory. Eutelsat also extended its partnership with du, the Emirates Integrated Telecommunications Company, to upgrade its DTH services across the Middle East and North Africa.

Professional Video revenues, which account for c.10% of the Video vertical, also decreased, reflecting structural headwinds as well as the seasonality of some events.

Fourth Quarter revenues stood at €170 million down by 9.7% year-on-year and broadly stable quarter-on-quarter.

Government Services (12% of revenues)

FY 2022-23 Government Services revenues stood at €143 million, down by 7.2% year-on-year.

Fourth Quarter revenues stood at €45 million, up by 25.8% year-on-year and by 45.0% quarter-on-quarter. This increase was mainly due to a one-off contract of €14m with the German space agency, DLR, whereby EUTELSAT HOTBIRD 13F provided a service from April at the 0.5°Eorbital position, prior to its commissioning at 13°E, expected in Q3 2023 (calendar).

Excluding this impact, Fourth Quarter revenues declined by 14.2% year-on-year, a level consistent with the trend of the Third Quarter (-13.4%), albeit representing a slightly improved trend versus the First Half, thanks to a superior renewal rate in the Spring 2023 US DoD campaign of above 70%, following the 65% rate of the Fall 2022 campaign.

Mobile Connectivity (10% of revenues)

FY 2022-23 Mobile Connectivity revenues stood at €110 million, up 26.8% year-on-year, reflecting the ongoing positive momentum, notably in Maritime.

Fourth Quarter revenues stood at €27 million, up 20.7% year-on-year and by 2.9% quarter-on-quarter, reflecting the positive impact of the commercialization in the First Half of the third beam on EUTELSAT QUANTUM for a maritime mobility customer.

Fixed Connectivity (16% of revenues)

FY 2022-23 Fixed Connectivity revenues stood at €178 million, down by 2.3% year-on-year.

In Broadband, 40% of this application, revenues were broadly stable as the comparison basis included the contribution from the wholesale agreements with Orange, TIM, and more recently Hispasat and Swisscom as well as, to a lesser extent, the growth of the African operations.

Eutelsat completed the disposal of its European broadband retail activities in the wake of the success of its wholesale go-to-market model to distribute satellite broadband capacity over Europe. This strategy will be further supported by the entry into service of KONNECT VHTS expected in the second half of 2023 (calendar).

In Fixed Data, 60% of this application, improved volume trends partly offset the negative impact of the ongoing competitive pressure on prices.

Fourth Quarter revenues stood at €41 million. On a like-for-like basis, they were down by 16.0% year-on-year, and by 6.9% quarter-on-quarter, reflecting a tougher comparison basis including a positive one-off of c. €2.5 million in the Fourth Quarter last year. Excluding this one-off, they were broadly stable on a sequential basis.

Other Revenues

Other Revenues amounted to -€5 million versus +€3 million a year earlier. They included a €15 million negative impact from hedging operations versus a negative impact of €12 million a year earlier.




30 June 2022


30 June 2023






Value of contracts (in billions of euros)




In years of annual revenues based on previous fiscal year




Share of Video application









The backlog stood at €3.4 billion at 30 June 2023 versus 4.0 billion a year earlier. The natural erosion of the backlog, especially in the Video segment, more than offsets the contribution of the EGNOS contract in Government as well as other incremental contracts in Mobility.

The backlog was equivalent to 3.0 times 2021-22 revenues, and Video represented 59% of the total.

Note: The backlog represents future revenues from capacity or service agreements and can include contracts for satellites under procurement. Managed services are not included in the backlog.


Adjusted EBITDA stood at €825 million at 30 June 2023 compared with €862 million a year earlier, down by 4.2%. The Adjusted EBITDA margin stood at 72.9% at constant currency (73.0% reported) versus 74.8% a year earlier, on the back of lower revenues, especially in the Video vertical. Operating costs were €16 million higher than last fiscal year reflecting increased staff and technical costs due to a changing revenue mix and, to a lower extent, inflation. They also included transaction costs incurred with Russian clients. This Adjusted EBITDA margin is reflective of the progressive rebalancing of our business towards connectivity applications.

Group share of net income stood at €315 million versus €231 million a year earlier, up by 36% and representing a margin of 28%. This reflected:

  • Lower depreciation of -€455m versus -€482m a year earlier, due to lower in-orbit and on-ground depreciation. Two satellites, HOTBIRD 13F and HOTBIRD 13G entered into service respectively on April 4, 2023 and May 30, 2023.
  • Other operating income of €203m, compared to income of €45 million last year, which principally includes the $382m payment related to Phase II of C-Band proceeds. Last year’s other operating income included $125m of Phase I of C-Band proceeds.
  • net financial result of -€91 million versus -€65 million a year earlier, reflecting an unfavourable evolution of foreign exchange gains and losses as well as higher interest rates.
  • Higher tax, at -€67 million versus -€49 million a year earlier, reflecting notably the 30% tax rate applied to the above-mentioned C-Band proceeds.
  • Negative income from associates of -€87 million, reflecting the full year contribution of the stake in OneWeb, which last year was only from September 2021 onwards7.


Net cash flow from operating activities amounted to €735 million, €66 million lower than a year earlier due to lower adjusted EBITDA and the first instalment of $100 million of the take-or-pay agreement signed with OneWeb, partially compensated by lower working capital requirement needs, namely thanks to a prepayment in respect of the EGNOS contract of €85 million and strong cash collection.

Cash Capex amounted to €271 million, a level broadly stable versus €280 million last year.

Interest and other fees paid net of interest received amounted to €95 million versus €78 million last year. It notably reflected interests from the credit facility drawn down for the financing of satellite programs.

Discretionary Free Cash-Flow amounted to €462 million on a reported basis, up €19 million. It excludes the first instalment of $100 million of the take-or-pay agreement signed with OneWeb. Adjusted Discretionary Free Cash-Flow as per the financial outlook definition8 and at a Euro/dollar rate of 1.00, stood at €518 million, down €3 million or 1%, but well above our objective of an average of €420 million per year at a €/$ rate of 1.00 for FY 2022-23 and FY 2023-24.


At 30 June 2023, net debt stood at €2,766 million, down €49 million versus end of June 2022. It reflected: i) higher reported Discretionary Free Cash-Flow, ii) a reduced dividend payment of €81 million following the payment of part of the dividend in shares under the scrip option, and iii) lower leases. These impacts were partly compensated by the outflow in respect of inorganic investments of €140m mainly for OneWeb as well as the first instalment of $100 million of the take-or-pay agreement signed with OneWeb.

The net debt to Adjusted EBITDA ratio stood at 3.35 times, compared to 3.27 times at end-June 2022 and 3.55 times at end-December 2022.

The average cost of debt after hedging stood at 2.96% (2.6% in FY 2021-22). The weighted average maturity of the Group’s debt amounted to 3.6 years, compared to 4.3 years at end-June 2022.

Liquidity remained strong, with undrawn credit lines and cash around €1.5 billion.


On a standalone basis, FY 2023-24 is expected to be the year that marks the return to revenue growth, driven by the entry into service of new in-orbit resources.

  • Video revenues are expected to be broadly in line with market trends of a mid-single digit decline, excluding the effect of sanctions which will be embarked for a full 12 months versus six months in FY 2022-23.
  • Government Services will continue to reflect the outcome of past and upcoming US DoD renewals and a tougher comparison basis with FY 2022-23 due to the abovementioned one-off DLR contract. Revenues will however benefit from the EGNOS GEO-4 contract on HOTBIRD 13G, set to generate €100m in revenues over 15 years.
  • Both the Mobile Connectivity and Fixed Connectivity verticals are expected to experience double-digit growth in FY 2023-24 on the back of the entry into service of EUTELSAT 10B and KONNECT VHTS, both with firm pre-commitments, and positive commercial traction.

Cash Capex9 will not exceed €400 million per annum for FY 2022-23 and FY 2023-24.

The Group will continue to leverage all measures to maximise cash generation and confirms an objective of Adjusted Discretionary Free Cash Flow expected at an average of €420 million per year at a €/$ rate of 1.00 for FY 2022-23 and FY 2023-24. This is equivalent to a cumulative Adjusted DFCF generation of c.€1.4 billion over three fiscal years at a 1.00 €/$ rate. It excludes future payments related to the exclusive commercial partnership with OneWeb.

On a standalone basis, the group continues to target a medium-term net debt / Adjusted EBITDA ratio of c.3x.

With its industry-leading profitability and confirmed ability to generate a high level of Free Cash Flow, Eutelsat is in a strong position to make the combination with OneWeb a true success.

Note: This outlook is based on the revised nominal deployment plan outlined in the 2022-2023 results presentation. It assumes no further material deterioration of revenues generated from Russian customers. It excludes the impact of the contemplated combination with OneWeb.


OneWeb’s revenues reached the $50 million objective at end-June 2023. For FY 2023-24, the later-than-expected availability of terminals for key verticals will lead to a delay in revenue recognition compared to the objective communicated in October 2022. As a result, the revenue and adjusted EBITDA objectives of Combined Entity are adjusted for the current fiscal year to reflect this short-term impact. The new objectives are as follows (at a €/$ rate of 1.00):

  • Operating Vertical revenues are now expected at €1.32-1.42 billion, with OneWeb’s standalone contribution estimated at €125-225 million in FY 2024, versus €1.35-1.45 billion for the Combined Group and €150-250 million for OneWeb previously.
  • The Combined Group’s adjusted EBITDA is now expected at €725-825 million in FY 2024 (versus €750-850 million previously).

OneWeb continues to enjoy strong commercial momentum, with over +$300m of incremental contracts signed since last October 2022, for a total backlog of $900m10. Therefore, the trajectory for the outer years remains unchanged, as our market expectations as well as the strong synergy potential give us confidence in the value-creation the Combined Entity can generate in the long run. Likewise, this adjustment does not alter the future group’s capacity to cover its long-term financing needs.

The Extraordinary General Meeting to approve the combination is expected to take place in late September 2023.

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