- Third Quarter Operating Verticals revenues of €300.3m
- +8.5%1 year-on-year
- +1.4%1 quarter-on-quarter
- Sustained double-digit growth in Connectivity
- Nine Month Operating Verticals revenues up 3.6%1
year-on-year
- FY 2023-24 financial objectives confirmed.
Regulatory News:
Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris /
London Stock Exchange: ETL) reports revenues for the Third Quarter
and Nine Months ended 31 March 2024.
In € millions
Q3 2022-23
Q3 2023-24
Change (%)
Reported
Like-for-like2
Video
169.3
160.2
-5.4
-4.9
Government Services
31.4
43.6
+38.9
+22.1
Mobile Connectivity
26.9
39.2
+45.6
+48.0
Fixed Connectivity
44.0
57.4
+30.2
+24.2
Total Operating Verticals
271.6
300.3
+10.6
+8.5
Other Revenues
0.4
0.5
+48.3
+48.2
Total
272.0
300.8
+10.6
+8.3
EUR/USD exchange rate
1.07
1.09
Note: Reported indicators include OneWeb since October
1st, 2023, and are compared to reported Eutelsat’s FY 2022-23
performance on a standalone basis.
HIGHLIGHTS
- Third Quarter and Nine-month revenues in line with
expectations.
- Video in line with overall market trend of mid-single digit
decline; base effect of nonrenewal of Digitürk contract and
Russian sanctions washed through from Q3.
- Double-digit growth in Connectivity (Government Services:
+22.1%; Mobile Connectivity: +48.0%; and Fixed Connectivity:
+24.2%), driven by incremental GEO capacity and LEO.
- All Full Year 2023-24 financial objectives confirmed.
- Successful launch of EUTELSAT 36D satellite, assuring service
continuity with optimised performance for video customers at the
36° East orbital position.
- Major $500m commercial deal with Intelsat for capacity on
OneWeb LEO constellation.
- OneWeb ground network roll-out on track.
- Refinancing of November 2025 bond completed.
THIRD QUARTER REVENUES3
Total revenues for the Third Quarter stood at €300.8 million up
10.6% on a reported basis and by 8.3% like-for-like. Revenues of
the four Operating Verticals (i.e., excluding ‘Other Revenues’)
stood at €300.3 million. They were up by 8.5% on a like-for-like
basis. Quarter-on-quarter, revenues of the four Operating Verticals
were up by 1.4% like-for-like.
Note: Unless otherwise stated, all variations indicated
hereunder are on a like-for-like basis, ie, at constant currency
and perimeter.
Video (53% of revenues)
Third Quarter Video revenues amounted to €160.2 million, down
4.9% year-on-year, in line with the broader market trend following
wash-through of the base effect of last year’s nonrenewal of the
Digitürk contract and Russian sanctions. On a quarter-on-quarter
basis revenues were down 3.9% reflecting the non-recurrence of a
one-off c.€3 million contract in Q2.
On the commercial front, Eutelsat secured several new contracts
in emerging broadcast regions, highlighting the ongoing relevance
of satellite in these markets, where sustained demand is partially
mitigating the decline in Europe. They included notably new
business on the EUTELSAT 117 West A satellite which was selected by
StarTV for the deployment of StarFlix, its new video streaming
service, and by Instituto Nacional de Radio y Televisión del Perú
which signed a multi-year capacity agreement for large-scale
content distribution to homes and IP devices across the
country.
Eutelsat also inked new business at its 7/8° West orbital
position with Télédiffusion d’Algérie which increased capacity on
the EUTELSAT 7 West A satellite to consolidate its TV and radio
channels on the country’s leading video neighbourhood. Finally, iKO
Media Group is leveraging capacity at the 16° East, 13° East, and
7/8° West orbital positions to bring its new eSports TV package,
eCLUTCH, to screens across Europe, the Middle East and Africa.
On the operational front, Eutelsat celebrated the successful
launch and deployment of its EUTELSAT 36D satellite, set to replace
EUTELSAT 36B, at the 36° East orbital position, assuring service
continuity with optimised performance for customers over its
footprint.
Fixed Connectivity (19% of revenues)
Third Quarter Fixed Broadband revenues stood at €57.4 million,
up 24.2% year-on-year on a like-for-like basis. They mainly
reflected the entry into service of KONNECT VHTS, as well as
contribution from OneWeb. Quarter-on-quarter, revenues were up by
6.7%.
On the commercial front OneWeb is gaining traction with the
activation of contracts where the service is now fully operational,
notably in South Africa where Q-KON, a leading satellite
engineering enterprise, is leveraging the constellation to deliver
digital banking services in the region, while NEC XON, a leading
African integrator of ICT solutions and part of Japan’s NEC Group,
has signed a multi-year, multimillion-dollar deal for connectivity
capacity to integrate into its suite of systems, providing secure
connectivity for enterprise customers in areas that lack
terrestrial connectivity - especially in agriculture, mining, oil
& gas and fibre back-up.
Government Services (15% of revenues)
Third Quarter Government Services revenues stood at €43.6
million, up 22.1% year-on-year. They were boosted by the
contribution of the EGNOS GEO-4 contract on HOTBIRD 13G4 from June
2023; they also embark the carry-forward effect of the Fall 2023 US
Department of Defence rate of above 80%.
Quarter-on-quarter, revenues were up by 7.2%.
The Spring 2024 renewal campaign with US Department of Defence
confirmed the improved trend of Fall 2023, with a renewal rate once
again above 80%.
Mobile Connectivity (13% of revenues)
Third Quarter Mobile Connectivity revenues stood at €39.2
million, up 48.0% year-on-year. They reflected the entry into
service of the high-throughput satellite, EUTELSAT 10B and OneWeb
growth. Quarter-on-quarter, revenues were up +11.9% underpinned by
ramp-up on OneWeb.
On the commercial front, Eutelsat extended its partnership with
Universal Satcom, the Dubai-based satellite communication system
integrator with a new multi-year capacity deal enabling Universal
Satcom to leverage Eutelsat’s geostationary ADVANCE maritime
packaged solutions in Ku-band to extend its coverage in MENA and
globally. Elsewhere, Australia’s Sat One, is leveraging the OneWeb
LEO constellation for the first-time activation of land-based
services across Australia’s remote northern and southern regions,
maritime services in Australian waters, and commercial service in
New Zealand.
Other Revenues
‘Other Revenues’ amounted to €0.5 million in the Third Quarter
versus €0.4million a year earlier and €0.1 million in the Second
Quarter. They included a negative (€1.1) million impact from
hedging operations compared to a negative impact of (€1.8) million
last year and a negative impact of (€1.6) million in the Second
Quarter.
BACKLOG
The backlog stood at €3.9 billion as of 31 March 2024 versus
€3.5 billion a year ago, and €3.9 billion at end-December 2023,
reflecting its natural erosion, especially in the Video segment, in
the absence of major renewals, offset by the contribution of
OneWeb.
It was equivalent to 3.4 times 2022-23 revenues, with Video
representing 44%.
31 March 2023
31 Dec. 2023
31 March 2024
Value of contracts (€ billions)
3.5
3.9
3.9
Value in years of revenues based on
previous year
3.1
3.5
3.4
Share of Video application (%)
61
46
44
Note: The backlog represents future revenues from
capacity or service agreements and can include contracts for
satellites under procurement. Managed services are not included in
the backlog.
NINE MONTH REVENUES
Revenues for the first Nine Months of FY 2023-24 stood at €873.5
million, up by 3.3% on a reported basis and by 3.4% at constant
currency and perimeter, underpinned by Eutelsat GEO business and
inclusion of OneWeb LEO business in the Second Quarter.
Revenues of the four Operating Verticals (excluding ‘Other
Revenues’) up 3.6% on a like-for-like basis excluding a negative
currency effect of -€20.9m.
In € millions
9m 2022-23
9m 2023-24
Change (%)
Reported
Like-for-like5
Video
535.3
491.4
-8.2
-7.0
Government Services
98.2
118.2
+20.3
+14.7
Mobile Connectivity
82.8
109.9
+32.7
+39.1
Fixed Connectivity
137.2
151.9
+10.7
+14.2
Total Operating Verticals
853.5
871.4
+2.1
+3.6
Other Revenues
-7.8
2.1
n.a
n.a
Total
845.8
873.5
+3.3
+3.4
EUR/USD exchange rate
1.03
1.08
OUTLOOK6
On the back of the performance of the first Nine Months, we
confirm our objectives7 for the Full Year 2023-24 of Operating
Vertical Revenues of between 1.25-1.30 billion euros and adjusted
EBITDA is expected in a range of €650m to €680m.
Elsewhere, cash capex8 for FY 2024 remains expected in a range
between €600m and €650m after synergies; for the period FY 2025 to
FY 2030, cash capex is expected between €600m to €700m on average
per annum.
We also continue to target leverage of c.3x in the medium
term.
++ENDS++
Third Quarter 2023-24 revenues conference call &
webcast
A conference call and webcast will be held on Tuesday, 14 May
2024 at 6:30pm CET
Click here to access the webcast
presentation.
It is not necessary to dial into the audio conference unless you
are unable to join the webcast URL
If needed, please dial:
+33 (0)1 7037 7166 (from France) +44 (0)33 0551
0200 (from the UK) +1 786 697 3501 (from the US)
Quote “Eutelsat” to the operator when connecting to the call.
Replay will be available on same link.
Financial calendar The financial calendar is provided for
information purposes only. It is subject to change and will be
regularly updated.
2 August 2024: Full Year 2023-24 results
About Eutelsat Communications Eutelsat Group is a global
leader in satellite communications, delivering connectivity and
broadcast services worldwide. The Group was formed through the
combination of Eutelsat and OneWeb in 2023, becoming the first
fully integrated GEO-LEO satellite operator with a fleet of 36
geostationary (GEO) satellites and a Low Earth Orbit (LEO)
constellation of more than 600 satellites. The Group addresses the
needs of customers in four key verticals of Video, where it
distributes more than 6,500 television channels, and the
high-growth connectivity markets of Mobile Connectivity, Fixed
Connectivity, and Government Services. Eutelsat Group’s unique
suite of in-orbit assets and on-ground infrastructure enables it to
deliver integrated solutions to meet the needs of global customers.
The Company is headquartered in Paris and Eutelsat Group employs
more than 1,700 people from more than 50 countries. The Group is
committed to delivering safe, resilient, and environmentally
sustainable connectivity to help bridge the digital divide. The
Company is listed on the Euronext Paris Stock Exchange (ticker:
ETL) and the London Stock Exchange (ticker: ETL).
Find out more at www.eutelsat.com
Disclaimer
The forward-looking statements included herein are for
illustrative purposes only and are based on management’s views and
assumptions as of the date of this document.
Such forward-looking statements involve known and unknown risks.
For illustrative purposes only, such risks include but are not
limited to: risks related to the health crisis; operational risks
related to satellite failures or impaired satellite performance, or
failure to roll out the deployment plan as planned and within the
expected timeframe; risks related to the trend in the satellite
telecommunications market resulting from increased competition or
technological changes affecting the market; risks related to the
international dimension of the Group's customers and activities;
risks related to the adoption of international rules on frequency
coordination and financial risks related, inter alia, to the
financial guarantee granted to the Intergovernmental Organization's
closed pension fund, and foreign exchange risk.
Eutelsat Communications expressly disclaims any obligation or
undertaking to update or revise any projections, forecasts or
estimates contained in this document to reflect any change in
events, conditions, assumptions or circumstances on which any such
statements are based, unless so required by applicable law.
The information contained in this document is not based on
historical fact and should not be construed as a guarantee that the
facts or data mentioned will occur. This information is based on
data, assumptions and estimates that the Group considers as
reasonable.
APPENDIX
Quarterly Reported revenues for FY 2022-23 and FY
2023-24
In € millions
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
2022-23
2022-23
2022-23
2022-23
2022-23
2023-24
2023-24
2023-24
Video
183.5
182.4
169.3
169.5
704.8
163.5
167.6
160.2
Government Services
34.7
32.2
31.4
45.1
143.4
33.5
40.7
43.6
Mobile Connectivity
25.9
30.0
26.9
27.3
110.1
35.2
36.0
39.2
Fixed Connectivity
46.4
46.8
44.0
40.6
177.8
40.2
54.3
57.4
Total Operating Verticals
290.5
291.4
271.6
282.6
1,136.1
272.5
298.6
300.3
Other Revenues
-3.1
-5.0
0.4
3.0
-4.8
1.5
0.1
0.5
Total
287.4
286.4
272.0
285.5
1,131.3
274.0
298.7
300.8
1 Like-for-like change. 2 Change at constant currency and
perimeter. The variation is calculated as follows: i) Q3 2023-24
USD revenues are converted at Q3 2022-23 rates; ii) the
contribution of the BigBlu retail broadband operations from 1st
January 2023 to 31 March 2023 is excluded from Q3 2022-23 revenues
iii) Q3 2022-23 revenues are restated to take into account the
contribution of OneWeb as if the operation had been completed from
July 1st 2022; iv) Hedging revenues are excluded. 3 The share of
each application as a percentage of total revenues is calculated
excluding “Other Revenues”. 4 Generating €100m over 15 years. 5
Change at constant currency and perimeter. The variation is
calculated as follows: i) 9-months 2023-24 USD revenues are
converted at 9-months 2022-23 rates; ii) the contribution of the
BigBlu retail broadband operations from 1st July 2022 to 31 March
2023 is excluded from 9-months 2022-23 revenues iii) 9-months
2022-23 revenues are restated to take into account the contribution
of OneWeb as if the operation had been completed from July 1st
2022; iv) Hedging revenues are excluded. 6 Outlook based on the
deployment plan outlined in the Third Quarter 2023-2024 revenue
presentation. It assumes no further material deterioration of
revenues generated from Russian customers. 7 Based on a EUR/USD
rate of 1.00 8 Based on nominal deployment plan for the GEO fleet
and LEO constellation; excluding uncommitted projects.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240514945076/en/
Media enquiries Joanna Darlington Tel. +33 674 521 531
jdarlington@eutelsat.com
Anita Baltagi Tel. +33 643 930 178 abaltagi@eutelsat.com
Katie Dowd Tel. +1 202 271 2209 kdowd@oneweb.net
Investors Joanna Darlington Tel. +33 674 521 531
jdarlington@eutelsat.com
Hugo Laurens-Berge Tel. +33 670 80 95 58
hlaurensberge@eutelsat.com
E3 Lithium (TSXV:ETL)
Historical Stock Chart
From Apr 2024 to May 2024
E3 Lithium (TSXV:ETL)
Historical Stock Chart
From May 2023 to May 2024
