Eutelsat Communications: Third Quarter and Nine-month 2023-24 Revenues
-
Third Quarter Operating Verticals revenues of €300.3m
- +8.5%1 year-on-year
- +1.4%1 quarter-on-quarter
- Sustained double-digit growth in Connectivity
- Nine Month Operating Verticals revenues up 3.6%1 year-on-year
- FY 2023-24 financial objectives confirmed.
In € millions |
Q3 2022-23 |
Q3 2023-24 |
Change (%) |
|
Reported |
Like-for-like2 |
|||
Video |
169.3 |
160.2 |
-5.4 |
-4.9 |
Government Services |
31.4 |
43.6 |
+38.9 |
+22.1 |
Mobile Connectivity |
26.9 |
39.2 |
+45.6 |
+48.0 |
Fixed Connectivity |
44.0 |
57.4 |
+30.2 |
+24.2 |
Total Operating Verticals |
271.6 |
300.3 |
+10.6 |
+8.5 |
Other Revenues |
0.4 |
0.5 |
+48.3 |
+48.2 |
Total |
272.0 |
300.8 |
+10.6 |
+8.3 |
EUR/USD exchange rate |
1.07 |
1.09 |
|
Note:
Reported indicators include OneWeb since
HIGHLIGHTS
- Third Quarter and Nine-month revenues in line with expectations.
- Video in line with overall market trend of mid-single digit decline; base effect of nonrenewal of Digitürk contract and Russian sanctions washed through from Q3.
- Double-digit growth in Connectivity (Government Services: +22.1%; Mobile Connectivity: +48.0%; and Fixed Connectivity: +24.2%), driven by incremental GEO capacity and LEO.
- All Full Year 2023-24 financial objectives confirmed.
-
Successful launch of
EUTELSAT 36D satellite, assuring service continuity with optimised performance for video customers at the 36° East orbital position. -
Major
$500m commercial deal with Intelsat for capacity on OneWeb LEO constellation. - OneWeb ground network roll-out on track.
-
Refinancing of
November 2025 bond completed.
THIRD QUARTER REVENUES3
Total revenues for the Third Quarter stood at €300.8 million up 10.6% on a reported basis and by 8.3% like-for-like. Revenues of the four Operating Verticals (i.e., excluding ‘Other Revenues’) stood at €300.3 million. They were up by 8.5% on a like-for-like basis. Quarter-on-quarter, revenues of the four Operating Verticals were up by 1.4% like-for-like.
Note: Unless otherwise stated, all variations indicated hereunder are on a like-for-like basis, ie, at constant currency and perimeter.
Video (53% of revenues)
Third Quarter Video revenues amounted to €160.2 million, down 4.9% year-on-year, in line with the broader market trend following wash-through of the base effect of last year’s nonrenewal of the Digitürk contract and Russian sanctions. On a quarter-on-quarter basis revenues were down 3.9% reflecting the non-recurrence of a one-off c.€3 million contract in Q2.
On the commercial front,
On the operational front,
Fixed Connectivity (19% of revenues)
Third Quarter Fixed Broadband revenues stood at €57.4 million, up 24.2% year-on-year on a like-for-like basis. They mainly reflected the entry into service of KONNECT VHTS, as well as contribution from OneWeb. Quarter-on-quarter, revenues were up by 6.7%.
On the commercial front OneWeb is gaining traction with the activation of contracts where the service is now fully operational, notably in
Government Services (15% of revenues)
Third Quarter Government Services revenues stood at €43.6 million, up 22.1% year-on-year. They were boosted by the contribution of the EGNOS GEO-4 contract on HOTBIRD 13G4 from
Quarter-on-quarter, revenues were up by 7.2%.
The Spring 2024 renewal campaign with
Mobile Connectivity (13% of revenues)
Third Quarter Mobile Connectivity revenues stood at €39.2 million, up 48.0% year-on-year. They reflected the entry into service of the high-throughput satellite,
On the commercial front,
Other Revenues
‘Other Revenues’ amounted to €0.5 million in the Third Quarter versus €0.4million a year earlier and €0.1 million in the Second Quarter. They included a negative (€1.1) million impact from hedging operations compared to a negative impact of (€1.8) million last year and a negative impact of (€1.6) million in the Second Quarter.
BACKLOG
The backlog stood at €3.9 billion as of
It was equivalent to 3.4 times 2022-23 revenues, with Video representing 44%.
|
|
|
|
Value of contracts (€ billions) |
3.5 |
3.9 |
3.9 |
Value in years of revenues based on previous year |
3.1 |
3.5 |
3.4 |
Share of Video application (%) |
61 |
46 |
44 |
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.
NINE MONTH REVENUES
Revenues for the first Nine Months of FY 2023-24 stood at €873.5 million, up by 3.3% on a reported basis and by 3.4% at constant currency and perimeter, underpinned by Eutelsat GEO business and inclusion of OneWeb LEO business in the Second Quarter.
Revenues of the four Operating Verticals (excluding ‘Other Revenues’) up 3.6% on a like-for-like basis excluding a negative currency effect of -€20.9m.
In € millions |
9m 2022-23 |
9m 2023-24 |
Change (%) |
|
Reported |
Like-for-like5 |
|||
Video |
535.3 |
491.4 |
-8.2 |
-7.0 |
Government Services |
98.2 |
118.2 |
+20.3 |
+14.7 |
Mobile Connectivity |
82.8 |
109.9 |
+32.7 |
+39.1 |
Fixed Connectivity |
137.2 |
151.9 |
+10.7 |
+14.2 |
Total Operating Verticals |
853.5 |
871.4 |
+2.1 |
+3.6 |
Other Revenues |
-7.8 |
2.1 |
n.a |
n.a |
Total |
845.8 |
873.5 |
+3.3 |
+3.4 |
EUR/USD exchange rate |
1.03 |
1.08 |
|
OUTLOOK6
On the back of the performance of the first Nine Months, we confirm our objectives7 for the Full Year 2023-24 of Operating Vertical Revenues of between
Elsewhere, cash capex8 for FY 2024 remains expected in a range between €600m and €650m after synergies; for the period FY 2025 to FY 2030, cash capex is expected between €600m to €700m on average per annum.
We also continue to target leverage of c.3x in the medium term.
++ENDS++
Third Quarter 2023-24 revenues conference call & webcast
A conference call and webcast will be held on Tuesday,
Click here to access the webcast presentation.
It is not necessary to dial into the audio conference unless you are unable to join the webcast URL
If needed, please dial:
+33 (0)1 7037 7166 (from
+44 (0)33 0551 0200 (from the
+1 786 697 3501 (from the US)
Quote “Eutelsat” to the operator when connecting to the call. Replay will be available on same link.
Financial calendar
The financial calendar is provided for information purposes only. It is subject to change and will be regularly updated.
About
The Group addresses the needs of customers in four key verticals of Video, where it distributes more than 6,500 television channels, and the high-growth connectivity markets of Mobile Connectivity, Fixed Connectivity, and Government Services. Eutelsat Group’s unique suite of in-orbit assets and on-ground infrastructure enables it to deliver integrated solutions to meet the needs of global customers. The Company is headquartered in
The Group is committed to delivering safe, resilient, and environmentally sustainable connectivity to help bridge the digital divide. The Company is listed on the
Find out more at www.eutelsat.com
Disclaimer
The forward-looking statements included herein are for illustrative purposes only and are based on management’s views and assumptions as of the date of this document.
Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to: risks related to the health crisis; operational risks related to satellite failures or impaired satellite performance, or failure to roll out the deployment plan as planned and within the expected timeframe; risks related to the trend in the satellite telecommunications market resulting from increased competition or technological changes affecting the market; risks related to the international dimension of the Group's customers and activities; risks related to the adoption of international rules on frequency coordination and financial risks related, inter alia, to the financial guarantee granted to the
The information contained in this document is not based on historical fact and should not be construed as a guarantee that the facts or data mentioned will occur. This information is based on data, assumptions and estimates that the Group considers as reasonable.
APPENDIX
Quarterly Reported revenues for FY 2022-23 and FY 2023-24
In € millions |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
Q1 |
Q2 |
Q3 |
2022-23 |
2022-23 |
2022-23 |
2022-23 |
2022-23 |
2023-24 |
2023-24 |
2023-24 |
|
Video |
183.5 |
182.4 |
169.3 |
169.5 |
704.8 |
163.5 |
167.6 |
160.2 |
Government Services |
34.7 |
32.2 |
31.4 |
45.1 |
143.4 |
33.5 |
40.7 |
43.6 |
Mobile Connectivity |
25.9 |
30.0 |
26.9 |
27.3 |
110.1 |
35.2 |
36.0 |
39.2 |
Fixed Connectivity |
46.4 |
46.8 |
44.0 |
40.6 |
177.8 |
40.2 |
54.3 |
57.4 |
Total Operating Verticals |
290.5 |
291.4 |
271.6 |
282.6 |
1,136.1 |
272.5 |
298.6 |
300.3 |
Other Revenues |
-3.1 |
-5.0 |
0.4 |
3.0 |
-4.8 |
1.5 |
0.1 |
0.5 |
Total |
287.4 |
286.4 |
272.0 |
285.5 |
1,131.3 |
274.0 |
298.7 |
300.8 |
1 Like-for-like change.
2 Change at constant currency and perimeter. The variation is calculated as follows: i) Q3 2023-24 USD revenues are converted at Q3 2022-23 rates; ii) the contribution of the BigBlu retail broadband operations from
3 The share of each application as a percentage of total revenues is calculated excluding “Other Revenues”.
4 Generating €100m over 15 years.
5 Change at constant currency and perimeter. The variation is calculated as follows: i) 9-months 2023-24 USD revenues are converted at 9-months 2022-23 rates; ii) the contribution of the BigBlu retail broadband operations from
6 Outlook based on the deployment plan outlined in the Third Quarter 2023-2024 revenue presentation. It assumes no further material deterioration of revenues generated from Russian customers.
7 Based on a EUR/USD rate of 1.00
8 Based on nominal deployment plan for the GEO fleet and LEO constellation; excluding uncommitted projects.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514945076/en/
Media enquiries
Tel. +33 674 521 531
jdarlington@eutelsat.com
Tel. +33 643 930 178
abaltagi@eutelsat.com
Tel. +1 202 271 2209
kdowd@oneweb.net
Investors
Tel. +33 674 521 531
jdarlington@eutelsat.com
Tel. +33 670 80 95 58
hlaurensberge@eutelsat.com
Source: