Eutelsat Communication reported that it generated EUR 55.7 million in earnings from Africa as of 31 December 2022. This was a 1.7% increase from EUR 47.7 million in the same period in 2021. In addition, Eutelsat’s total revenue across all geographical markets is EUR 573.8 million, which increased from EUR 572.2 million during the same period last year.
The company reported that all its financial objectives had been confirmed, showing that the operating verticals revenue is down 4.1%, like for like within the range of full-year objectives.
Furthermore, it is projected that over the Full Year, Fixed Broadband should be broadly stable, as the comparison basis now better reflects the above-mentioned contracts, which are Orange, TIM, Hispasat and Swisscom, namely in Europe and Africa. Growth is expected to reaccelerate in FY 2023-24 on the back of the entry into the service of KONNECT VHTS.
Commenting on the results of the first half of the financial year, the Chief Executive Officer of Eutelsat, Eva Berneke, expressed that “Eutelsat delivered a solid first half and highlighted that the Operating Verticals were within the range of the full-year objectives. Moreover, Eutelsat maintained industry-leading profitability with a 73% EBITDA margin. The year has started on a good note with four satellite launches and the ramping up of Eutelsat quantum. This has resulted in service continuity and incremental capacity, leading to growth for the FY 2023-2024. Elsewhere, OneWeb continues to deliver positive commercial ramp-up, and the proposed deal to combine our two companies is on track for closing in the calendar Q2/Q3 2023. In the long term, our new orbital assets and the projected combination with OneWeb will unlock significant potential in markets where the demand for connectivity is booming.”
Eutelsat’s deals in Africa during the financial period
Launch of the Eutelsat Konnect VHTS, Hotbird 13F, Hotbird 13G, and Eutelsat 10 B satellites
The Konnect VHTS, Hotbird 13F, Hotbird 13G and Eutelsat 10B satellites were successfully launched on 8 September 2022, 15 October 2022, 3 November 2022 and 23 November 2022, respectively. The Konnect VHTS satellite will deliver high-speed broadband and mobile connectivity services across Europe. The Hotbird 13F and 13G twin satellites will reinforce and optimise the delivery of more than a thousand television channels to homes in Europe, North Africa and the Middle East. Eutelsat 10B carries two new multi-beam HTS (High-Throughput Satellite) Ku-band payloads: a high-capacity payload covering the North Atlantic corridor, Europe, the Mediterranean basin and the Middle East, offering significant throughput in the busiest air and sea traffic zones, and a second payload to extend coverage across the Atlantic Ocean, Africa and the Indian Ocean. The entry into the service of these satellites is planned for 2023.
Merger with OneWeb
OneWeb continues to see positive commercial momentum, with a secured backlog of USD 0.8 billion at the end of December 2022, up EUR 200 million vs. October 2022’s Strategic Update, on the back of key contracts won, namely with Airtel in Africa and Galaxy in Canada. Revenues are on track to reach the USD 50 million objectives by end-June 2023.
