Eutelsat sees further decline in broadcast revenues

Satellite operator Eutelsat’s broadcast video revenues have continued to decline in its fiscal first quarter, with a mid-single digit decline in broadcast expected for the full year.

Eutelsat’s broadcast sales were down 7.4% to €170 million, which the company said reflected the carry-forward effect of the partial renewal of capacity with Nilesat at 7/8° West in October 2021. Excluding the 7/8° West impact, revenues were down at a low-single digit pace, it said.

Nevertheless, broadcast revenues are expected to decline for the full year also as a result of the anticipated non-renewal of a capacity contract with Digitürk from mid- November

Broadcast still makes up 59% of Eutelsat’s overall revenue base. All business lines saw like-for-like revenue declines in the first quarter except fixed broadband and mobile connectivity, which grew strongly from a relatively small base.

Overall revenues were down 4.5% on a like-for-like basis to €287.4 million for the quarter.

The operator said that the quarter was in line with expectations and it confirmed its full-year revenue objectives.

Eutelsat’s CFO, Sandrine Téran, has announced her decision to step down in November, and a recruitment process to find a replacement is currently underway.

“First Quarter Revenues are in line with our expectations, and we confirm our financial objectives for the current and subsequent years. Despite limited available capacity at this stage, we continue to record a strong double-digit growth in Fixed Broadband and Mobile Connectivity highlighting the massive long-term potential for both applications, while our mature broadcast activities declined in line with expectations,” said CEO Eva Berneke.

“We made further strong progress in the implementation of our Telecom Pivot with the completion of the implementation of our new organization, aligned along two business lines – Broadcast and Connectivity, and new leadership in place for each business unit. The creation of two business units will enhance customer-centricity, boost efficiency and foster growth. Finally, the successful launch of the Konnect VHTS satellite in September is a crucial milestone for our Connectivity-driven return to growth, bringing unprecedented levels of capacity to the European markets, some of it already pre-sold.”