Eutelsat hails ‘broadly stable’ video business in Q3 | Satellite | News | Rapid TV News
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Claiming that the three-month period had seen it achieve all of its financial objectives, leading satellite operator Eutlesat has posted a mixed set of results in which it has seen video continue its downward orbital trajectory, albeit at a slower pace, but continued growth in broadband and mobile connectivity services.
eutelsat HQ 13May2022
Total revenues for the Third Quarter stood at €287 million down 4.8% on a reported basis and by 2.7% like-for-like on an annual basis. Revenues at the company’s five principal operating verticals stood at €285 million, down by 3.5% year-on-year on a like-for-like basis excluding a negative perimeter effect of circa three points from the disposal of Euro Broadband Infrastructure (EBI) on 30 April 2021 and a positive currency effect of circa three points. Quarter-on-quarter, revenues of the five Operating Verticals were down by 0.7% like-for-like.

The Broadcast vertical, responsible for 61% of the firm’s revenues, witnessed a third quarter with slowing losses. Third Quarter Broadcast revenues amounted to €173 million, down 6.8% year-on-year, representing an improvement in trend relative to the Second Quarter (-8.6% year-on-year). The revenue decline reflected predominantly the effect of the partial renewal of capacity with Nilesat at 7/8°West, which was not offset by the resale of this capacity, in addition to a slight erosion in the underlying business in Europe .

Excluding the 7/8°West impact, Broadcast revenues experienced a low-single-digit decline. Quarter-on-quarter, revenues were broadly stable with the slight, -0.8%, erosion reflecting said the company of the carryforward effect of the above-mentioned 7/8°West headwind which impacted revenues from mid-October onwards. Revenues were flat excluding this item. Revenues are expected to remain broadly stable in the Fourth Quarter relative to the Third Quarter.

“The Third Quarter saw robust delivery, with an improvement in Broadcast trend and strong double-digit growth in both Fixed Broadband and Mobile Connectivity whereas Government Services inevitably reflected the geopolitical environment in the Middle East,” said Eva Berneke, chief executive officer of Eutelsat Communications commenting on the third quarter results.

“Recent months have seen meaningful progress on the commercial front in particular with the successful commercialisation of Eutelsat Quantum. Elsewhere, our global distribution agreement with OneWeb to address key connectivity verticals enhances the competitive position of both companies and represents a first step towards the development of combined GEO/LEO solutions. Overall, revenues at the Nine Month stage are in line with our expectations, and we confirm all our financial objectives.”