Eutelsat still under revenue pressure
February 17, 2022
By Chris Forrester
Eutelsat released its first half-year results on February 17th and reported that like-for-like revenues had fallen 4.2 per cent. The satellite operator also cautioned that its full-year numbers would be at the lower end of guidance.
However, drilling down into the numbers, it reported that actual revenues of €628.5 million (for the half-year to December 31st 2021) had fallen 9 per cent from the previous year’s €572.2 million. Free cashflow tumbled 24.1 per cent while the operator’s contracted backlog had also fallen back 4.9 per cent to €4.4 billion.
Eva Berneke, CEO, said: “This has been a satisfactory First Half in financial terms, with strong free cash flow generation and a further industry leading EBITDA margin, despite the decline in revenues, testifying to our fundamentally robust business model and stringent financial discipline. The First Half has seen a number of important commercial and operational milestones, notably with the entry into service of EUTELSAT QUANTUM, strong progress on our Fixed Broadband roll-out, the cementing of our position in OneWeb and the receipt of the first tranche of our C Band proceeds. Newly at the helm, I am impressed by the technical expertise, asset quality and long-term commercial traction within Eutelsat. Although we have mechanically revised down our medium-term revenue expectations on the back of delayed availability of capacity, I am confident we have the elements in place to enable us to return to growth from FY 2023-24 and continue to deliver long-term value to our shareholders.”
Eutelsat confirmed that its investment in OneWeb had closed. It had also received $125 million related to Phase 1 of the C-band transition in the US.