Eutelsat First Quarter 2024-25 Revenues

 29 October 2024

Eutelsat Communications  reports revenues for the First Quarter ended 30 September 2024.

RECENT HIGHLIGHTS

First Quarter Revenues in line with expectations; Full year financial objectives confirmed

Successful launch of the latest batch of 20 OneWeb satellites, reinforcing the constellation

Multi-launch agreement with Mitsubishi Heavy Industries, adding further optionality for access to space

FIRST QUARTER REVENUES[1]

Total revenues for the First Quarter stood at €300 million, up 9.4% on a reported basis, and by 5.9% like-for-like.

Revenues of the four Operating Verticals (ie, excluding ‘Other Revenues’) stood at €297 million. They were up 5.5% on a like-for-like basis excluding a negative currency effect of €1 million.

Quarter-on-quarter, revenues of the four Operating Verticals were down by 11.9% like-for-like.

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

Video (51% of revenues) 

First Quarter Video revenues amounted to €152 million, down 7.3% year-on-year, reflecting the secular market decline in this application.

Professional Video revenues, which account for under 10% of the Video vertical, also decreased, reflecting lower occasional use.

On a quarter-on-quarter basis, revenues were down by 4.5%. 

On the commercial front, Eutelsat secured a number of contracts, notably with the renewal of its agreements with key customers including Al-Jazeera for broadcast in the Middle East, Cable Color for Latin America. Elsewhere, Eutelsat secured a new partnership with TVPlus for coverage of Australia and New Zealand, confirming EUTELSAT 172B as one of the new go-to positions for broadcasters in the region.

Fixed Connectivity (19% of revenues) 

First Quarter Fixed Connectivity revenues stood at €57 million, up 30.1% year-on-year. They mainly reflected the acceleration in LEO services, driven by the NEOM contract, as well as calendar effect of the entry into service of KONNECT VHTS in Q2 FY24.

On a quarter-on-quarter basis, revenues were down by 30.9%. This reflected a high level of equipment sales as well as the recognition of catch-up revenues which boosted Q4 FY24.

Commercial wins in the quarter included a deal with Bayobab, a subsidiary of the MTN Group, which will leverage the OneWeb LEO constellation under a multi-year agreement to deliver connectivity for enterprises and cellular backhaul across Africa, as well as a contract with SoftBank to deliver connectivity for businesses and government agencies throughout Japan and Marking Eutelsat’s entry into the Japanese market. 

Government Services (16% of revenues) 

First Quarter Government Services revenues stood at €46 million, up 20.3% year-on-year. This rise reflected the contribution from LEO-enabled connectivity solutions.

On a quarter-on-quarter basis, revenues were broadly stable. 

The latest renewal campaign with the US Department of Defence (Fall 2024) resulted in a renewal rate of above 80%.

Mobile Connectivity (14% of revenues) 

First Quarter Mobile Connectivity revenues stood at €42 million, up 18.8% year-on-year. They mainly reflected the ongoing strong growth of LEO-based connectivity solutions, as well as GEO solid performances, notably in aviation.  

On a quarter-on-quarter basis, revenues were down by 14.6%, notably due to equipment revenues recognized in Q4 FY24. 

On the commercial front, Inmarsat Maritime, a Viasat company, selected Eutelsat’s OneWeb low Earth orbit network for integration into its NexusWave fully managed connectivity solution.

Other Revenues 

‘Other Revenues’ amounted to €3 million in the First Quarter versus €2 million a year earlier and €2 million in the Fourth Quarter of FY 2023-24. They included a neutral impact from hedging operations in the First Quarter as well as in the First Quarter of the previous year, and in the Fourth Quarter of 2023 24.