Eutelsat highlights ‘stable’ broadcast revenues, OneWeb merger plan details

Satellite operator Eutelsat, which yesterday confirmed it was planning an effective takeover of low-Earth orbit constellation OneWeb, has posted satisfactory mid-year results by its own estimation, with revenues slightly above the mid-point of the expected range.

Eutelsat posted revenues of €1.15 billion, down 6.7%, and EBITDA of €862 million, down 6.5% for the full year. Core broadcast revenue was down 6.9% on a like-for-like basis to €697 million, with the operator saying broadcast showed consistent resilience in the second half.

Broadcast revenues reflected predominantly the effect of the partial renewal of capacity with Nilesat at 7/8° West as well as lower revenues in Europe in the first half of the fiscal year due to the carry-forward effect of a slowdown in the pace of new business during the COVID period, according to the company.

Only fixed broadband and mobile connectivity revenues were up. Broadband was up 36% to €69 million, while mobility was up 15% to €80 million.

Eutelsat is now confirming its prediction of a return to topline growth from 2023-04 with continue strong cash-flow generation, all based on the assumption that there is no further material impact on its business in Russia resulting from Russia’s invasion of Ukraine.

Eutelsat has also revealed further details about its plan to merge with OneWeb.

Eutelsat said the deal values OneWeb at €4.3 billion. New details include a plan to list on the London stock exchange as well as Eutelsat’s existing listing on the Paris Euronext.

The company said that the combined entity had the potential for double digit revenue and EBITDA growth in the medium to long term that its own strong cash-flow generation would help fund expansion into the LEO market and that it had identified over €1.5 billion of “potential incremental value-creation” after tax, including revenue, capex and cost synergies.