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Eutelsat Third Quarter Revenues  

Total revenues for the Third Quarter stood at €272 million down 5.2% on a reported basis and by 7.5% like-for-like.

Revenues of the five Operating Verticals (ie, excluding ‘Other Revenues’) stood at €272 million. They were down by 7.0% on a like-for-like basis.

Quarter-on-quarter, revenues of the five Operating Verticals were down by 3.7% like-for-like. Unless otherwise stated, all variations indicated hereunder are on a like-for-like basis, ie, at constant currency and perimeter.

Broadcast (58% of revenues)

Third Quarter Broadcast revenues amounted to €157 million, down 10.6% year-on-year. The slight deterioration compared to Q2 reflected the full effect of the non-renewal of the Digitürk contract, as well as lower revenues in Europe. It was also underpinned by the effect of sanctions against certain Russian and Iranian channels which mainly impact the Second Half of FY 2022-23.

On the commercial front, Eutelsat was selected by certain Latin American customers for broadcast services in Mexico and Brazil, leveraging the unparalleled coverage of the EUTELSAT 65A, 117WA and 117WB satellites over the region.

Revenues in the Fourth Quarter are expected to slightly decrease compared to the Third Quarter on the back of lower volumes in Europe.

Data & Professional Video (14% of revenues)

Third Quarter Data & Professional Video revenues stood at €38 million, down by 7.3% year-on-year.

In Fixed Data, two thirds of this application, improved volume trends partly offset the negative impact of ongoing competitive pressure.

Professional Video revenues saw a slight deterioration, reflecting the phasing of a specific contract, as well as seasonality in occasional use.

Quarter-on-quarter revenues decreased by 4.7%, notably reflecting the above-mentioned Professional Video headwinds.

On the commercial front, a partnership was signed with POULSAT to help provide schools in North Africa with high-speed internet connectivity thanks to Eutelsat ADVANCE solutions. POULSAT’s digital classroom project, supported by The World Bank Group, will connect over a hundred schools in the next three years.

We expect this application to decline at a mid-single digit pace over the full fiscal year, consistent with previous indications.

Government Services (11% of revenues)

Third Quarter Government Services revenues stood at €31 million, down 13.4% year-on-year. This reflected the full negative carry-forward effect of recent US Department of Defence renewals, with in particular a renewal rate of 65% in Fall 2022. This decrease was partially offset by a take-or-pay contract 4

The share of each application as a percentage of total revenues is calculated excluding “Other Revenues”. with Airbus, which also expands Eutelsat’s European customers portfolio, thereby diversifying itsgeographic exposure.

Quarter-on-quarter, revenues were up by 3.1% reflecting the above-mentioned contract which was booked with retroactive effect at 1 July 2022.

The latest renewal campaign with the US Department of Defence (Spring 2023) resulted in a slightly improved renewal rate of above 70%.

In the Fourth Quarter, the trend should improve on the back of the above-mentioned tailwinds.

Fixed Broadband (7% of revenues)

Third Quarter Fixed Broadband revenues stood at €19 million, up 7.3% year-on-year on a like-for-like basis. They reflected the contribution from the wholesale agreements with Orange, TIM and more recently Hispasat and Swisscom as well as, to a lesser extent, the growth of the African operations.

Quarter-on-quarter, revenues were up by 3.5%.

Over the Full Year, Fixed Broadband should be broadly stable, as the comparison basis includes the above-mentioned contracts, namely in Europe and Africa. Growth is expected to accelerate in FY 2023-24 on the back of the entry into service of KONNECT VHTS.

Mobile Connectivity (10% of revenues)

Third Quarter Mobile Connectivity revenues stood at €27 million, up 23.0% year-on-year. They reflected the ongoing positive momentum, notably the strong growth in Maritime.

Quarter-on-quarter, revenues were down by 4.1%. They reflected the timing of the ommercialization of the third beam on EUTELSAT QUANTUM booked in Q2 with retroactive effect since August 2022.

This positive dynamic is expected to translate into double-digit growth for the Full Year, albeit at a slower pace compared to the First Nine Months as the comparison basis will gradually reflect some of the above-mentioned as well as other incremental contracts.

Other Revenues

‘Other Revenues’ amounted to €0.4 million in the Third Quarter versus €2.1 million a year earlier and -€5 million in the Second Quarter. They included a negative (€1.8) million impact from hedging operations compared to a negative impact of (€2.8) million last year and a negative impact of (€7) million in the Second Quarter.


The backlog stood at €3.5 billion as of 31 March 2023 versus €4.0 billion a year ago, and €3.7 billion at end-December 2022, reflecting its natural erosion in the absence of major broadcast renewals this quarter.

It was equivalent to 3.1 times 2021-22 revenues, with Broadcast representing 58%.


Revenues for the first Nine Months of FY 2022-23 stood at €846 million, down by 1.5% on a reported basis and by 6.6% at constant currency and perimeter.

Revenues of the five Operating Verticals (excluding ‘Other Revenues’) were stable on a reported basis.

They were down by 5.1% on a like-for-like basis excluding a positive currency effect of €43m.

In € millions 9m 2021-22 9m 2022-23


Reported Like-for-like Broadcast 523.0 495.0 -5.4% -8.0%

Data & Professional Video 117.8 121.8 3.4% -4.1%

Government Services 108.4 98.2 -9.4% -18.1%

Fixed Broadband 47.0 55.7 18.6% 13.5%

Mobile Connectivity 57.2 82.8 44.8% 29.2%

Total Operating Verticals 853.4 853.5 0.0% -5.1%

Other Revenues 5.6 -7.8 -238.3% -240.2%

Total 859.0 845.8 -1.5% -6.6%

EUR/USD exchange rate 1.16 1.03


On the back of the performance of the first Nine Months, we confirm our objective for the Full Year of Operating Vertical Revenues of between 1,135-1,165 million euros (based on a EUR/USD rate of 1.00).

All other elements of the financial outlook are also confirmed:

• Cash Capex5 not exceeding €400 million per annum for each of the next two fiscal years (FY 2022-23 / FY 2023-24).

• Adjusted Discretionary Free Cash Flow expected at an average of €420 million per year at a €/$ rate of 1.00 for FY 2022-23 and FY 2023-24. This is equivalent to a cumulative Adjusted DFCF generation of €1,361 million over three fiscal years at a 1.00 €/$ rate (FY 2021-22, FY 2022-23, and FY 2023-24). NB/ Adjusted DFCF objectives exclude future payments related to the exclusive commercial partnership with OneWeb.

• Commitment to a sound financial structure and continue to target a medium-term net debt / EBITDA ratio of around 3x.

This outlook is based on the revised nominal deployment plan outlined in the 2022-2023 Third Quarter revenue presentation. It assumes no further material deterioration of revenues generated from Russian customers. It excludes the impact of the contemplated combination with OneWeb.

The next step change in the revenue trend will be the entry into service in calendar H2 2023 of new in[1]orbit assets with secured pre-commitments, in the Mobility, Government and Broadband applications, underpinning our expected return to growth in FY 2023-24.


OneWeb’s Gen-1 constellation is on track to reach global coverage by the end of this year, supporting a robust commercial ramp-up across key verticals with a $300m increase in the order backlog since October 2022. This positive operational and commercial momentum underpins our expectations for the growth and value creation potential of the combined entity, with an estimated NPV of combined synergies exceeding €1.5bn. The development of Gen-2 is set to begin in 2024, unlocking significant additional value at an optimized cost.

Including capital expenditure and payments under existing export credit facilities and other bank facilities financing investments as well as payments related to lease liabilities.





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