Satellite operator Eutelsat reports revenue boost from Oneweb takeover
Revenue at French satellite operator Eutelsat hit €1.21bn (£1.03bn) in the company’s fiscal 2023. Still, the group had a notable drop in operating and net income despite reduced debt and growth in government services.
Headquartered and listed in Paris, the company added a London listing when it acquired the UK-based company Oneweb last year.
Revenue for the period jumped 7.2 per cent while adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased 13 per cent to €718.9m (£614.7m) from €825.5m (£705.9m).
Operating income declined from €573.5m (£490.4m) to €191.3m (£164m).
Net debt decreased from €2.76bn (£2.36bn) to €2.54bn (£2.17bn) a reduction of €221.3m (£189.2m).
CEO Eva Berneke said the group delivered on its objectives, thanks to a “robust performance from incremental GEO capacity and the contribution of our LEO business.”
She noted: “This has been an important year in the history of Eutelsat with the closing of its combination with Oneweb to form Eutelsat Group, the world’s first LEO-GEO satellite operator, representing a major step-up in our telecom pivot.”
Eutelsat bought British rival Oneweb in September 2023 in order to create the first LEO-GEO operator.
However, Berneke noted: “The operational roll-out of the Oneweb service has been more challenging than anticipated.”
“”e are now on track in terms of target coverage, and we expect to see continued growth from Oneweb in full-year 2024-25,” the boss added.
Video transmission made up 54 per cent of revenue, although income from this source fell 6.8 per cent.
However, the group stated recent capacity renewals by TVN Warner Bros. Discovery and United Media Group could boost income in the current year.
It also said it expected to see positive revenue trends from the Olympic Games.
Representing 19 per cent of the group revenue, fixed connectivity rose by 29.1 per cent year-on-year to €234m (£200m), driven by KONNECT VHTS and increased demand in Africa.
The group stated Oneweb LEO significantly contributed to its top line, with revenue reaching €82m (£72m), a 73.5 per cent increase year-on-year in the fourth quarter.
Government services revenue grew by five per cent to €165m (£141m), due to new contracts and renewed US Department of Defence agreements.