AUS
NZ
UK
CA
USA
IND
Highlights
- Revenue Growth in Line with Expectations: First-half operating verticals revenues of €600 million, up 3.9% like-for-like.
- Strong Connectivity Performance: Connectivity revenues surged 21.1%, driven by LEO-enabled solutions and government contracts.
- Financial Stability and Strategic Adjustments: Capex estimate reduced by €200 million, with a €535 million goodwill impairment on GEO assets.
Eutelsat Communications (LSE:ETL) has reported solid first-half (H1) financial results for the 2024-25 fiscal year, meeting expectations despite challenges in the video broadcasting segment. The company’s total revenues reached €606.2 million, reflecting a 5.9% increase on a reported basis and 4.4% like-for-like.
Operating verticals—comprising Video, Connectivity, and Government Services—contributed €600 million, marking a 3.9% like-for-like increase. However, video revenues declined by 6.4% to €309.2 million, in line with broader market trends as the industry shifts toward digital and on-demand services.
Connectivity Sector Sees Robust Growth
Connectivity revenues now account for 48% of Eutelsat’s total revenue, underscoring the company’s successful transition towards broadband and satellite-based communication solutions.
- Fixed Connectivity revenues rose 22.2% year-on-year to €118.9 million, driven by LEO-enabled solutions and a one-off catch-up payment from a LEO customer.
- Mobile Connectivity generated €75.3 million, growing 7.1% year-on-year, largely due to increased maritime demand for LEO-based solutions.
- Government Services revenues surged 21.9% to €96.4 million, benefiting from renewed contracts with the U.S. Department of Defense (DoD) and non-U.S. government agencies.
Recent strategic deals include a multi-year agreement with Q-KON to expand LEO services across Sub-Saharan Africa and a partnership with NIGCOMSAT to enhance satellite services in Nigeria.
Financial Adjustments and Outlook
Eutelsat remains on track to achieve its full-year 2024-25 financial objectives while lowering capex estimates by approximately €200 million due to adjusted LEO investment timelines and optimized GEO satellite spending.
However, the company recorded a €535 million goodwill impairment on GEO assets, reflecting lower expected future cash flows from this segment. Additionally, it exercised a put option for the sale-and-lease-back of passive ground infrastructure, set to generate €500 million in net proceeds by H1 2026.
While video revenues continue to decline, Eutelsat is repurposing KONNECT VHTS capacity for mobile connectivity solutions, ensuring broader application flexibility.
