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.
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.
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.
