Eutelsat Communication (Eutelsat) reported that it generated EUR 57.4 million in revenues from the sales of its satellite services in the Middle East and North Africa (MENA) in its first financial quarter (Q1 2022-2023). In addition, Eutelsat’s total revenue across all geographical markets during the same period stood at EUR 287 million, representing a 4.5% decrease from the last financial quarter.
The company reported that all its financial objectives had been confirmed. Eutelsat’s operating vertical revenues of EUR 291 million went down by 4.3%, which was in; line with the expectations of the midpoint of full-year objectives.
| In € millions | Q1
2021-22 |
Q2
2021-22 |
Q3
2021-22 |
Q4
2021-22 |
FY
2021-22 |
Q1
2022-23 |
| Broadcast | 177.6 | 172.8 | 172.5 | 173.9 | 696.9 | 170.1 |
| Data & Professional Video | 38.4 | 39.4 | 40.0 | 40.7 | 158.5 | 41.1 |
| Government Services | 37.0 | 36.8 | 34.6 | 36.0 | 144.4 | 34.7 |
| Fixed Broadband | 14.6 | 15.5 | 16.9 | 21.7 | 68.7 | 18.7 |
| Mobile Connectivity | 17.1 | 19.4 | 20.7 | 22.7 | 79.9 | 25.9 |
| Total Operating Verticals | 284.8 | 283.9 | 284.7 | 295.0 | 1148.3 | 290.5 |
| Other Revenues | 2.6 | 1.0 | 2.1 | -2.3 | 3.3 | -3.1 |
| Total | 287.3 | 284.9 | 286.8 | 292.6 | 1151.6 | 287.4 |
Quarterly reported revenues. Source: Eutelsat
Furthermore, Eutelsat reported a decrease in Broadcast, Data and professional video and government services during this period. While fixed broadband and mobile connectivity reflected the least percentage of revenue contribution, they both showed the largest increase in revenue contribution.
| Revenue Contribution | Revenue EUR million | Percentage Change | |
| Broadcast | 59% | 170 | -7.40% |
| Data and Professional Video | 14% | 41 | -2.40% |
| Government services | 12% | 35 | -17.70% |
| Fixed Broadband | 6% | 19 | 21.10% |
| Mobile Connectivity | 9% | 26 | 31.40% |
Source: Eutelsat investor presentation
Commenting on the 2022-23 results, Eva Berneke the Chief Executive Officer of Eutelsat communications said that “First Quarter Revenues are in line with our expectations, and we confirm our financial objectives for the current and subsequent years. Despite limited available capacity at this stage, we continue to record strong double-digit growth in Fixed Broadband and Mobile Connectivity, highlighting the massive long-term potential for both applications, while our mature broadcast activities declined in line with expectations.” This comment is also proven by the projects Eutelsat partook in, which are detailed below.
Eutelsat’s Deals in Africa During the Financial Period
Merger with OneWeb
Shareholders were sceptical about the economic justification of the merger with OneWeb. They were proven correct when they experienced a significant drop in their market cap. The deal entailed the exchange of OneWeb shares by its non-Eutelsat shareholders for EUR 230 million of newly issued Eutelsat shares -50% of the enlarged share capital.
OneWeb is in the business of low-earth orbit satellites, while Eutelsat works with geostationary orbits. These differences in their scope of work resulted in USD 200 million in operating losses. Shareholders have been affected by a decision to abandon dividends for three years to make up the money lost in operating losses.
Tizeti and Eutelsat partnered to bridge Nigeria’s digital gap
Tizeti, West Africa’s solar-based internet provider, partnered with Eutelsat to improve broadband connectivity in Nigeria which stands at 44.5%. This is in line with the quarter one revenue of EUR 19 million, an increase of 21.1%, demonstrating continued progress at Eutelsat’s African operations. Moreover, this reflected the robust double-digit growth in fixed broadband and mobile connectivity.
Eutelsat and Liquid Intelligent Technologies partner to distribute satellite connectivity across Africa
Liquid Intelligent Technologies, a Pan-African Technology group in its partnership with Eutelsat, will provide satellite connectivity to small and medium enterprises and small and home offices in Uganda, South Sudan, other Eastern regions and the Democratic Republic of Congo. They will utilise the Eutelsat Konnect satellite, a new generation High Throughput Satellite, to provide broadband services. Liquid Intelligent Technologies has a footprint in 27 African countries, reaching 1.3 billion people.
