Eutelsat cuts outlook on OneWeb delays and revenue mix

Satellite operator Eutelsat has cut its outlook for the year as a result of delays to the deployment of the ground network of LEO constellation OneWeb’s service and changes in the latter’s likely revenue mix.

The post-merger company is now known as Eutelsat Group.

Eutelsat said that while 100% of OneWeb’s satellites are now in place and there is an order backlog worth US$1.1 billion at the end of the last quarter, the service is running behind schedule due to delays in the he availability of the ground network, as well as a revenue mix more oriented than expected towards the sale of user terminals, which impacts margins.

Eutelsat said the ground network should be 90% completed by Q2 of 2.24 and added that there was strong momentum in take up of pre-signed commitments.

Nevertheless, the operator has been forced to reduce its revenue guidelines from between €1.32 billion-€1.42 billion to €1.25 billion-€1.3 billion.

Adjusted EBITDA will also be lower, and this is now expected to between €650 million-€680 million against €725 million-€825 million.

Eutelsat said it would review and share financial objectives for the 2.24-25 financial year when it announced its current full-year results on August 2. It said it was suspending previously communicated objectives for the 2024-25 year.

Eutelsat and OneWeb completed their merger in September last year, with the combined company to be known as Eutelsat Group.

The company has been bullish about the prospects of combining OneWeb’s LEO constellation with Eutelsat’s traditional GEO satellites, despite some scepticism from investment analysts.