Eutelsat slows broadcast falls as it inks merger MOU with OneWeb | Media Investment | Business | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Revealing yearly results showing just how strongly connectivity and mobile are growing their importance for the business as broadcast continues to decline further, Eutelsat has announced what it called a robust financial year and has now inked a Memorandum of Understanding with OneWeb to merge businesses.
Eutelsat Quantum 2 AUg 2021
For its 2021/22 financial year ended 30 June 2022, the leading satellite operator reported total revenues of €1.152 billion, down by 6.7% on a reported basis and down 3.9% like-for-like. Yearly revenues in the company’s five operating verticals stood at €1.148 billion, falling 3.8% on a like-for-like basis excluding a positive currency effect of circa 2 points as well as a negative perimeter effect of circa 2.5 points from the disposal of Euro Broadband Infrastructure.

Fourth quarter revenues stood at €293 million down 3.8% on a reported basis and by 3.3% like-for- like. Revenues of the five operating verticals stood at €295 million, down 3.1% year-on-year and up 1.5% quarter-on-quarter on a like-for-like basis.

Drilling deeper, the company’s broadcast division, which now accounts for 61% of total revenues, saw yearly revenues fall 6.9% on a yearly like-for-like basis to €697 million. They reflected predominantly, said Eutelsat, the effect of the partial renewal of capacity with Nilesat at 7/8° West as well as lower revenues in Europe in the first half of the fiscal year due largely to the carry-forward effect of a slowdown in the pace of new business during the Covid period.

Fourth quarter broadcast revenues stood at €174 million, down 5.8% year-on-year. Excluding the 7/8° West impact, revenues experienced a low-single-digit decline. Quarter-on-quarter, revenues were broadly stable for the second quarter in a row.

As the results were being announced, Eutelsat confirmed that talks with OneWeb regarding a potential merger have led to the signed a Memorandum of Understanding with the objective of creating a leading global player in connectivity through the combination of both companies in an all-share transaction. The deal will see Eutelsat own 100% of OneWeb, excluding the ‘Special Share’ of the UK Government, and will combine its 36-strong fleet of GEO satellites with OneWeb’s constellation of 648 Low Earth Orbit satellites, of which 428 are currently in orbit.