REG-Eutelsat Group Eutelsat Communications: Second Quarter and First Half 2024-25 Results
14/02/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250214:nBwbcZvfSa&default-theme=true
Eutelsat Communications: Second Quarter and First Half 2024-25 Results
* H1 2024-25 results in line with expectations
* Operating verticals revenues of €600m up 3.9% like-for-like(1)
* Adjusted EBITDA margin of 55.2%
* FY 2024-25 objectives confirmed; capex estimate reduced by c.€200m
* IRIS(2) confirmation representing a key step in Eutelsat’s LEO build-out
strategy and defining roadmap for interim OneWeb extension
The Board of Directors of Eutelsat Communications (ISIN: FR0010221234 -
Euronext Paris / London Stock Exchange: ETL), chaired by Dominique D’Hinnin,
reviewed the financial results for the Half Year ended 31 December 2024.
Key Financial Data 6M to Dec. 6M to Dec. Change Change Pro Forma(1)
2023
2024
P&L
Revenues - €m 572.6 606.2 5.9% 4.4%
"Operating Verticals" revenues reported - €m 571.1 599.9 5.0% 3.9%
Adjusted EBITDA - €m 365.6 334.9 -8.4% 4.9%
Adjusted EBITDA - % 63.8% 55.2% -8.6 pts 0.3 pt
Operating income - €m -134.4 -789.6 n.a. -
Group share of net income - €m -191.3 -873.2 n.a. -
Financial structure
Net debt - €m 2,619.1 2,695.8 +76.7 M€ -
Net debt/ Adjusted EBITDA - X 4.13 3.92 -0.21 pt -
Backlog - €bn 3.9 3.7 -4.6%
Note: This press release contains figures from the consolidated half-year
accounts prepared under IFRS and subject to a limited review by the Auditors.
They were reviewed by the Audit Committee on 12 February 2025 and approved by
the Board of Directors on 13 February 2025. Adjusted EBITDA, adjusted EBITDA
margin, Net debt / Adjusted EBITDA ratio and Gross Capex are considered
Alternative Performance Indicators. Their definition and calculation are in
Appendix 3 of this document. The auditors’ review procedures have been
carried out and the review report is in the process of being issued.
Eva Berneke, Chief Executive Officer of Eutelsat Communications, said:
“First Half revenues and profitability were in line with expectations, and
enable us to confirm our objectives for the full year, while our gross capex
landing is now expected at €500-600 million, a reduction of c. €200
million relative to previous estimates.
The past few months have seen the alignment of several factors paving the way
for Eutelsat’s LEO build-out strategy: first, the exercise of the put option
for the sale-and-lease-back of our passive ground infrastructure, with
proceeds due H1 calendar 2026 and second, confirmation of the European
Union’s IRIS(2) multi-orbit constellation representing a key step in
Eutelsat’s LEO strategy, which in turn defines the road map for the interim
LEO constellation extension. We are actively working on a financing plan in
line with our strategic road map and longer term leverage objective.”
KEY EVENTS
* First Half Operating Verticals revenues of €600 million up 3.9% (1)
* Adjusted EBITDA margin of 55.2%, stable year-on-year (1)
* Full Year 2024-25 Revenue and Adjusted EBITDA margin objectives confirmed
* Gross Capex landing now expected lower at €500-600 million related to timing
of LEO investments and reinforced vigilance on GEO
* Goodwill impairment of €535 million in respect of GEO assets, reflecting
lower expected future cashflows from these assets
* Put option exercised for sale-and-lease-back of passive ground infrastructure
with c. €500 million net proceeds due H1 calendar 2026
* Confirmation of European Union’s IRIS(2) multi-orbit constellation project,
delivering significant benefits at compelling cost; representing a key step in
shaping Eutelsat’s strategic road map for the interim LEO constellation
extension
ANALYSIS OF REVENUES(2)
In € millions 6M to Dec. 6M to Dec. Change
2023
2024
Reported Like-for-like(1)
Video 331.1 309.2 -6.6% -6.4%
Connectivity 240.0 290.7 21.1% 17.8%
Government Services 74.2 96.4 29.9% 21.9%
Mobile Connectivity 71.2 75.3 5.9% 7.1%
Fixed Connectivity 94.6 118.9 25.7% 22.2%
Total Operating Verticals 571.1 599.9 5.0% 3.9%
Other Revenues 1.6 6.3 na na
Total 572.6 606.2 5.9% 4.4%
EUR/USD exchange rate 1.08 1.09
Total revenues for the First Half of FY 2024-25 stood at €606.2 million, up
by 5.9% on a reported basis and up by 4.4% like-for-like(1). Revenues of the
four Operating Verticals (i.e., excluding ‘Other Revenues’) stood at
€599.9 million. They were up 3.9% on a like-for-like(1) basis, excluding a
negative currency impact of €2 million, with strong connectivity growth more
than offsetting the decline in video.
Second Quarter revenues stood at €306.5 million up 2.9% like-for-like(3).
Revenues of the four Operating Verticals stood at €303.2 million, up 2.4%
year-on-year on a like-for-like(3) basis, and up 2.2% quarter-on-quarter.
In € millions Q2 2023-24 Q2 2024-25 Change
Reported Like-for-like(3)
Video 167.6 157.4 -6.1% -5.6%
Connectivity 131.0 145.7 11.2% 12.7%
Government Services 41.1 50.1 21.7% 23.3%
Mobile Connectivity 35.6 33.3 -6.3% -4.5%
Fixed Connectivity 54.3 62.3 14.8% 15.9%
Total Operating Verticals 298.6 303.2 1.5% 2.4%
Other Revenues 0.1 3.3 na na
Total 298.7 306.5 2.6% 2.9%
EUR/USD exchange rate 1.07 1.09
Note: Unless otherwise stated, all variations indicated below are on an
unaudited like-for-like basis, ie, at constant currency and perimeter. The
variation is calculated as follows: i) H1 2024-25 USD revenues are converted
at H1 2023-24 rates; ii) H1 2023-24 revenues are restated with the
contribution of OneWeb from 1st July 2023 to 30 September 2023; iii) Hedging
revenues are excluded.
Video (52% of revenues)
First Half Video revenues were down by 6.4% to €309.2 million, in line with
the broader secular market decline.
Second Quarter revenues stood at €157.4 million down by 5.6% year-on-year,
and up 3.8% on a sequential basis, reflecting the linearisation of revenue
recognition on certain contracts. This trend does not alter the underlying
cadence in Video of a mid-single digit decline.
Professional Video revenues, which account for less than 10% of the vertical,
also declined reflecting ongoing structural headwinds.
Connectivity (48% of revenues)
Total Connectivity revenues for the First Half of FY 2024-25 stood at €290.7
million, up by 21.1% on a reported basis and up by 17.8% like-for-like(1).
Second Quarter revenues stood at €145.7 million up 12.7% like-for-like(3)
year-on-year, and stable quarter-on-quarter.
Fixed Connectivity
First Half Fixed Connectivity revenues stood at €118.9 million, up 22.2%
year-on-year, mainly reflecting the continued growth of LEO-enabled
connectivity solutions as well as a one-off impact from catch up revenues from
a LEO customer.
Second Quarter revenues stood at €62.3 million, up 15.9% year-on-year and by
9.9% on a sequential basis, mainly reflecting the above-mentioned one-off
impact.
Key contracts signed during the past quarter include a new multi-year
agreement with Q-KON to expand Low Earth Orbit (LEO) satellite services across
Sub-Saharan Africa, as well as a multi-year, multi-million-dollar partnership
with NIGCOMSAT to deliver LEO satellite services in Nigeria.
Second Half revenues will reflect more challenging conditions for GEO-enabled
consumer broadband in Europe, and notably by the temporary cessation of
revenue recognition from a specific customer on the KONNECT VHTS satellite.
Against this backdrop, Eutelsat is repurposing capacity on KONNECT VHTS to
address a broader range of applications, notably Mobile Connectivity.
Government Services
First Half Government Services revenues stood at €96.4 million, up by 21.9%
year-on-year, reflecting the contribution from LEO services. Second Quarter
revenues stood at €50.1 million, up by 23.3% year-on-year and by 8.0%
quarter-on-quarter.
The vertical is benefiting from improved US DoD renewals in the latest
campaigns as well as increased demand from non-US governments.
Mobile Connectivity
First Half Mobile Connectivity revenues stood at €75.3 million, up 7.1%
year-on-year, mainly reflecting demand for LEO-based solutions notably for
maritime applications.
Second Quarter revenues stood at €33.3 million, down 4.5% year-on-year and
by 20.4% quarter-on-quarter. This decrease reflected lower GEO revenues, as
well as quarter-on-quarter, a one-off contract in the First Quarter of c. €3
million, not repeated in the Second, as well as higher equipment sales in the
First Quarter.
Other Revenues
Other Revenues amounted to €6.3 million versus €1.6 million a year
earlier. They included a €1 million positive impact from hedging operations
versus a negative impact of €2 million a year earlier.
BACKLOG
The backlog stood at €3.7 billion on 31 December 2024 versus €3.9 billion
a year earlier. This decrease reflects the natural erosion of the backlog,
especially in the Video segment, partly offset by the growing LEO backlog. The
backlog was equivalent to 3.1 times FY 2023-24 revenues, with Connectivity
representing 56% of the total, and LEO now accounting for 48% of this segment.
31 Dec. 30 June 31 Dec.
2023
2024
2024
Value of contracts (in billions of euros) 3.9 3.9 3.7
In years of annual revenues based on prior fiscal year 3.5 3.5 3.1
Share of Connectivity application 53% 56% 56%
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.
PROFITABILITY
Reported Adjusted EBITDA stood at €334.9 million on 31 December 2024
compared with €365.6 million a year earlier down by 8.4%. On a like for like
basis, Adjusted EBITDA was up 4.9%(1).
The Adjusted EBITDA margin stood at 55.1% at constant currency (55.2%
reported) versus 54.8% on a like for like basis(1) (63.8% reported). It
reflected ongoing strict cost control measures as well as synergy benefits
from the integration of OneWeb.
Operating costs were €64.3 million higher than last fiscal year reflecting
the impact of the consolidation of OneWeb for six months of the current Fiscal
Year compared with only three months for FY 2023-24. On a proforma basis,
costs were up 3.7%(1), reflecting on one hand the embarkation of OneWeb at
full operational run rate, and on the other, cost control measures implemented
since the merger.
Group share of net income stood at -€873.2 million versus -€191.3 million
a year earlier. This reflected:
* Higher Other operating expenses of €690.8 million, compared to €183.9
million last year. They include:
* A goodwill impairment €535 million in respect of GEO assets based on the
test performed 31 December 2024. It reflects the cash flow forecasts adopted
by the Group in its latest five-year plan, embarking the lower future cash
flows the Group expects to be able to generate from its existing GEO assets.
These take account of increased competition in the connectivity market and a
greater than expected decline in demand for video services. This is consistent
with the impact already experienced by the Group in lower Video customer
renewal rates and more recently, the transfer of demand from GEO to LEO
connectivity services.
* €117 million in satellite impairments.
* Higher depreciation of €433.7 million versus €316.1 million a year
earlier, reflecting the perimeter effect from OneWeb as well as higher
in-orbit and on-ground depreciation. (EUTELSAT 36D and 20 LEO spares entered
service during the First Half).
* A net financial result of -€99.1 million versus -€60.7 million a year
earlier, reflecting higher interest costs, partly offset by favourable
evolution of foreign exchange gains and losses.
* A Corporate Tax expense of €7.6 million versus a tax gain of €28.5 million
a year earlier, implying an effective tax rate of -0.9%. It reflects the
non-recognition of deferred tax assets relating to losses in France and the
United Kingdom, the net impact of the exemption mechanism for the share of
Eutelsat S.A.'s profits allocated to the satellites operated outside France,
including the related Pillar Two charge, the effect of the tax rates of
foreign subsidiaries as well as the impact of impairments on the Group's
satellites, particularly those in the Satmex arc.
* Losses from associates of €1.0 million versus €23.0, reflecting the
contribution of the stake in OneWeb in the First Quarter of FY 2023-24, now
fully consolidated.
GROSS CAPEX
Gross Capex amounted to €174.8 million, versus €313.7 million last year;
this decrease reflects the GEO satellite program delivery and launch last year
as well as lower LEO on-ground Capex versus last year.
First Half capex is not representative of expected FY 2024-25 outturn, which
will embark the 100 LEO satellite batch order. Nevertheless, Capex for the
full year is now expected in the €500-600 million range (vs €700-800
million previously) reflecting the timing of LEO investments as well as
increased vigilance on GEO capex.
FINANCIAL STRUCTURE
On 31 December 2024, net debt stood at €2,695.8 million, up €151.8 million
versus end of June 2024. It was mainly due to Capex-related movements and
higher financial costs, partially offset by net cash flow generated by
activities.
The net debt to Adjusted EBITDA ratio stood at 3.92 times, compared to 4.13
times at end-December 2023 and 3.79 times at end-June 2024.
The average cost of debt after hedging stood at 4.84% (3.16% in H1 2023-24).
The weighted average maturity of the Group’s debt stood at 3.0 years,
compared to 3.0 years at end-December 2023.
Undrawn credit lines and cash stood at around €1.24 billion.
NEXT STEPS
Recent weeks have seen the alignment of several factors paving the way for
Eutelsat’s LEO build-out strategy:
Binding agreement on sale-and-lease-back of ground infrastructure
Eutelsat exercised the put option with EQT Infrastructure regarding the sale
of a majority stake in its passive ground infrastructure assets leading to the
signing of a binding Share Purchase Agreement. The transaction consists of the
carve-out of the Eutelsat’s passive ground infrastructure assets to form a
standalone company in which EQT will acquire 80% while Eutelsat will remain
committed as long-term shareholder, anchor tenant and partner of the new
company with a 20% holding. The transaction values the new entity at an
enterprise value of €790m with the closing of the deal expected in the first
half of calendar year 2026, delivering net proceeds of c. €500m, after tax,
to Eutelsat for the sale of 80%, which will strengthen its financial resources
and contribute to funding the LEO constellation extension.
Green light from the EU on the IRIS² constellation
The SpaceRISE consortium, of which Eutelsat is a key member, received the
go-ahead from the European Union to design, build, and operate the IRIS²
constellation, due to enter service in 2030, under an initial 12-year
concession.
The project is valued at some €10.6 billion, with public funding
representing c.60% of the total project cost, supplemented by private
financing from the consortium members. For its part, Eutelsat will invest in
the region of €2 billion, back-end loaded to the later stages of the
project, giving it:
* Access to additional sellable LEO capacity of 1.5 Tbps out of total of 2 Tbps
of LEO capacity
* Access to KaMil capacity not consumed by EU sovereign needs
* Scale advantages of shared fixed costs and R&D investments in new
technologies
* Commitments from EU and Member States for IRIS(2) capacity worth several
hundred of million euros
* Clearly capped financial commitment with strict milestones providing for exit
and compensation in the event of missed targets compromising returns
Eutelsat is expected to generate revenues of at least € 6.5bn over period of
concession.
Eutelsat’s involvement in IRIS(2) represents a key step in the company’s
strategy to develop and expand its low Earth orbit capacities, and the
extension of its existing OneWeb constellation will be technologically
compatible with the future IRIS² assets.
Clearing road map for OneWeb extension
The confirmation of IRIS(2 )delivers a road map for Eutelsat to plan the
extension of its existing LEO constellation, including technological
compatibility with future IRIS(2) assets. Following confirmation of the IRIS²
contract, Eutelsat procured the first batch of 100 LEO satellites, for
delivery by end of calendar-2026, ensuring continuity and enhancement of
service.
Eutelsat estimates the extension of the LEO constellation up to the
availability of IRIS² will require a further 340 satellites on top of this
initial committed 100, equating to a total cost of the extension program in
the region of €2-2.2bn euros between FY 2024-25 and FY 2028-29.
As mentioned above, Eutelsat’s contribution to IRIS² will be back-end
loaded during the period ahead of the availability of the constellation,
beginning in FY 2028-29.
Eutelsat is actively working on a financing plan in line with its strategic
road map and longer term leverage objective.
FINANCIAL OBJECTIVES
The First Half performance was in line with our expectations. We confirm our
FY 2024-25 objectives, of FY 2025 Revenues of the four operating verticals
around the same level as FY 2024(4), and an Adjusted EBITDA margin slightly
below the level of FY 2024(5). These objectives are confirmed despite the
specific GEO consumer broadband headwind mentioned above.
Gross capital expenditure in FY 2024-25 initially expected in a range of
€700-800 million euros is now expected c.€200 lower, in a range of
€500-600 million euros.
Eutelsat also continues to target leverage of c.3x in the medium term.
Note: This outlook is based on the nominal deployment plan. It assumes no
further material deterioration of revenues generated from Russian customers.
UPDATE ON IN-ORBIT ASSETS
Since 1(st) July 2024, the following changes have occurred in the
Geostationary fleet:
* EUTELSAT 36D entered service at 36°E on 23(rd) September 2024
* EUTELSAT 33E was deorbited in October 2024
* EUTELSAT 33F in service at 33°E, has started to be operated in Inclined Orbit
in November 2024
* EUTELSAT 50A (ex-EUTELSAT 36B) entered service at 50°E in December 2024
Following these operations, the geostationary fleet stands at 35 satellites.
In October 2024, Eutelsat launched 20 satellites into low Earth orbit (LEO),
further strengthening the OneWeb constellation.
CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY
Corporate Governance
Changes to the composition of the Board of Directors
On 13th February 2025, Eutelsat announced changes to the composition of its
Board of Directors, aimed at fostering greater agility in decision-making in
the fast-evolving Satellite industry. Four sitting directors, Mia Brunell,
Esther Gaide, Cynthia Gordon and Fleur Pellerin resigned from the Board. At
the same time, Michel Combes was appointed by the Board as an independent
Board Member until the next Annual General Meeting, where he will be proposed
for a full term. Following these changes, Eutelsat’s Board of Directors is
composed of 12 members, of which seven Independent Directors. It includes five
women, equating to a representation of 42%.
Elsewhere, Dominique D’Hinnin informed the Board of Directors of his wish to
retire from the Chairmanship and Board of Eutelsat Group. The Nomination and
Governance Committee has taken note of Dominique’s intention and will
undertake due process prior to recommending a new Chairman to the Board of
Directors.
Annual General Meeting
The Ordinary and Extraordinary Annual General Meeting of Shareholders of
Eutelsat Communications was held on 21 November 2024 in Paris. All the
resolutions submitted were approved. They included notably
* Approval of the accounts.
* Renewal of the mandate of Mrs Eva Berneke as a Board member.
* Ratification of the appointment of Hanwha Systems UK Ltd (represented by Mrs.
Joo-Yong Chung) as a Board member.
* Appointment of Ernst & Young and Forvis Mazars SA as statutory auditors
for the certification of sustainability reporting.
* Compensation of corporate officers and compensation policy.
* Authorisation to the Board of Directors to purchase the Company's shares and,
if necessary, to cancel them.
* Authorisation to the Board of Directors to grant existing or future free
ordinary shares of the Company to its eligible employees and corporate
officers.
Changes to Eutelsat Group Executive Committee
* Mariam Kaynia was appointed as Chief Data and Information Officer in November
2024, replacing David Bath.
* Fabio Mando was appointed as Chief Operations Officer in November 2024,
replacing Massimiliano Ladovaz.
Corporate Social Responsibility
Communicating on the Group’s non-financial performance
On 17 October 2024, Eutelsat Group published its Extra-Financial Performance
Statement for the fiscal year 2023-24, as part of its Universal Registration
Document. This report outlines the Group’s environmental, social, and
governance (ESG) commitments, detailing its CSR policy, carbon footprint, and
ESG performance indicators. Check out the latest report
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.eutelsat.com%2Ffiles%2FPDF%2Fcsr%2FEutelsat%2520Group_DPEF%25202023-2024_EN.pdf&esheet=54206521&newsitemid=20250213450733&lan=en-US&anchor=Check+out+the+latest+report&index=1&md5=83bfcd64ef657280fbf3b1e3599bb8e0)
. Eutelsat is already taking a proactive approach to the upcoming Corporate
Sustainability Reporting Directive (CSRD) and is currently developing a double
materiality matrix in alignment with CSRD requirements.
Bridging the Digital Divide
By the end of December 2024, Eutelsat successfully fulfilled its pledge under
the Partner2Connect Digital Coalition, an initiative led by the International
Telecommunication Union (ITU). This milestone—achieved two years ahead of
schedule—has brought high-speed internet to 1 million underserved people in
Sub-Saharan Africa via our Konnect Wi-Fi hotspots powered by EUTELSAT KONNECT
satellite. This achievement reinforces our commitment to bridging the digital
divide, a core pillar of our CSR strategy, and supports progress toward the
United Nations' 2030 Agenda for Sustainable Development.
Science-Based Climate Commitments
On 21 January 2025, the Science Based Targets initiative (SBTi) validated
Eutelsat’s near-term environmental targets, marking a major milestone in our
climate strategy:
* A 50% absolute reduction in energy-related greenhouse gas (GHG) emissions
(Scope 1 and 2) by 2030, from a 2021 baseline.
* A 52% reduction in Scope 3 GHG emissions per satellite Mbit by 2030 within the
same timeframe.
The SBTi’s Target Validation Team has confirmed that our Scope 1 and 2
targets are aligned with a 1.5°C trajectory, reflecting our commitment to a
science-based approach to emissions reduction. Eutelsat is committed to
upholding these efforts as it works toward further reducing its environmental
impact.
Expanding the Group’s solar energy capacity
During the first half of its fiscal year, the Group announced that all solar
panel systems installed at its sites had been fully commissioned, are
operational, and running at nominal capacity. This initiative includes
installations at sites in Turin and Cagliari (Italy), Caniçal (Madeira), as
well as Hermosillo and Iztapalapa (Mexico). The total annual solar energy
capacity from these systems has reached 2,000,000 kWh, supplying around 8% of
Eutelsat Group's annual electricity consumption.
Half year results presentation
Eutelsat Group will present its results on Friday, February 14, 2025, by
conference call and webcast at 9:00 CET.
Click here
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fchannel.royalcast.com%2Feutelsat-en%2F%23%21%2Feutelsat-en%2F20250214_1&esheet=54206521&newsitemid=20250213450733&lan=en-US&anchor=here&index=2&md5=380a74b35729beccbb6ca8353726507d)
to attend the webcast presentation.
(The webcast link will remain available for replay)
It is not necessary to dial into the conference call, unless you are unable to
join the webcast URL
If needed, please dial one of these numbers:
+33 (0)1 7037 7166 (from France)
+44 (0)33 0551 0200 (from the U.K)
Quote “Eutelsat” to the operator when connecting to the call.
Documentation
The consolidated half year accounts are available on the
www.eutelsat.com/investors
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.eutelsat.com%2Finvestors&esheet=54206521&newsitemid=20250213450733&lan=en-US&anchor=www.eutelsat.com%2Finvestors&index=3&md5=ec2d0fa396788c7fd2ed832ef977f868)
website.
Financial calendar
The financial calendar below is provided for information purposes only. It is
subject to change and will be regularly updated.
* 15 May 2025: Third quarter and nine month 2024-25 revenues
* 5 August 2025: Full Year 2024-25 results
About Eutelsat Group
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 35 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 1,500 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
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.eutelsat.com&esheet=54206521&newsitemid=20250213450733&lan=en-US&anchor=www.eutelsat.com&index=4&md5=73aa91163917736a2e9346109904b7e8)
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 ’und, 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.
APPENDICES
Appendix 1: Additional financial data
Extract from the consolidated income statement (€ millions)
Six months ended December 31 2023 2024 Change (%)
Revenues 572.6 606.2 5.9%
Operating expenses (207.0) (271.3) 31.1%
Adjusted EBITDA 365.6 334.9 -8.4%
Depreciation and amortisation (316.1) (433.7) 37.2%
Other operating income (expenses) (183.9) (690.8) n.a.
Operating income (134.4) (789.6) n.a.
Financial result (60.7) (99.1) 63.2%
Income tax expense 28.5 (7.6) n.a.
Income / (loss) from associates (23.0) (1.0) -95.8%
Portion of net income attributable to non-controlling interests (1.8) 24.0 n.a.
Group share of net income (191.3) (873.2) n.a.
Appendix 2: Quarterly revenues by application
Quarterly Reported revenues FY 2023-24 and H1 2024-25
The table below shows quarterly reported revenues FY 2023-24 and H1 2024-25.
In € millions Q1 Q2 Q3 Q4 FY Q1 Q2
2023-24 2023-24 2023-24 2023-24 2023-24 2024-25 2024-25
Video 163.5 167.6 160.2 159.3 650.6 151.8 157.4
Government Services 33.5 41.1 43.6 47.1 165.3 46.4 50.1
Mobile Connectivity 35.2 35.6 39.2 49.4 159.3 42.0 33.3
Fixed Connectivity 40.2 54.3 57.4 82.2 234.1 56.5 62.3
Total Operating Verticals 272.5 298.6 300.3 338.0 1,209.4 296.7 303.2
Other Revenues 1.5 0.1 0.5 1.6 3.7 3.0 3.3
Total 274.0 298.7 300.8 339.6 1,213.0 299.7 306.5
Appendix 3: Alternative performance indicators
In addition to the data published in its accounts, the Group communicates on
three alternative performance indicators which it deems relevant for measuring
its financial performance: Adjusted EBITDA, adjusted EBITDA margin, Net debt /
Adjusted EBITDA ratio and Gross Capex. These indicators are the object of
reconciliation with the consolidated accounts.
Adjusted EBITDA, Adjusted EBITDA margin and Net debt / Adjusted EBITDA ratio
Adjusted EBITDA reflects the profitability of the Group before Interest, Tax,
Depreciation and Amortisation. It is a frequently used indicator in the Fixed
Satellite Services Sector and more generally the Telecom industry. The table
below shows the calculation of Adjusted EBITDA based on the consolidated
P&L accounts for H1 2023-24 and H1 2024-25:
Six months ended December 31 (€ millions) 2023 2024
Operating income (134.4) (789.6)
+ Depreciation and Amortisation 316.1 433.7
- Other operating income and expenses 183.9 690.8
Adjusted EBITDA 365.6 334.9
The Adjusted EBITDA margin is the ratio of Adjusted EBITDA to revenues. It is
calculated as follows:
Six months ended December 31 (€ millions) 2023 2024
Adjusted EBITDA 365.6 334.9
Revenues 572.6 606.2
Adjusted EBITDA margin (as a % of revenues) 63.8 55.2
At constant currency, the adjusted EBITDA margin stood at 55.1% as of 31
December 2024.
The Net debt / adjusted EBITDA ratio is the ratio of net debt to last-twelve
months adjusted EBITDA. It is calculated as follows:
Six months ended December 31 (€ millions) 2023 2024
Last twelve months adjusted EBITDA 634.2 688.2
Closing net debt(6) 2,619.1 2,695.8
Net debt / adjusted EBITDA 4.13x 3.92x
Gross Capex
Gross Capex covers the acquisition of satellites and other tangible or
intangible assets as well as payments related to lease liabilities. If
applicable it is net from the amount of insurance proceeds.
The table below shows the calculation of Gross Capex for H1 2023-24 and H1
2024-25:
Six months ended December 31 (€ millions) 2023 2024
Acquisitions of satellites, other property and equipment and intangible assets (294.7) (147.1)
Insurance proceeds - -
Repayments of lease liabilities(7) (19.0) (27.6)
Gross Capex (313.7) (174.8)
_____________________
(1 )Unaudited change at constant currency and constant perimeter. The
variation is calculated as follows: i) H1 2024-25 USD figures are converted at
H1 2023-24 rates; ii) H1 2023-24 figures are restated with the contribution of
OneWeb from 1st July 2023 to 30 September 2023; iii) Hedging revenues are
excluded.
(2) The share of each application as a percentage of total revenues is
calculated excluding “Other Revenues”.
(3 )Change at constant currency. The variation is calculated as follows: i) Q2
2024-25 USD revenues are converted at Q2 2023-24 rates; ii) Hedging revenues
are excluded.
(4) Outlook based on comparison with FY 2023-24 proforma basis as if OneWeb
had been consolidated on July 1, 2023. Group’s FY 2023-24 revenues stood at
1,221m€ on a proforma basis.
(5) Outlook based on comparison with FY 2023-24 proforma basis as if OneWeb
had been consolidated on July 1, 2023. FY 2023-24 Adjusted EBITDA margin stood
at 55.0% on a proforma basis.
(6) Net debt includes all bank debt, bonds and all liabilities from lease
agreements and structured debt as well as Forex portion of the cross-currency
swap, less cash and cash equivalents (net of bank overdraft). Net Debt
calculation will be available in the Note 6.4.3 of the appendices to the
financial accounts.
(7) Included in line of “Repayment of lease liabilities” of cash-flow
statement.
Media enquiries
Joanna Darlington
Tel. +33 6 74 52 15 31
jdarlington@eutelsat.com (mailto:jdarlington@eutelsat.com)
Anita Baltagi
Tel. +33 6 43 93 01 78
abaltagi@eutelsat.com (mailto:abaltagi@eutelsat.com)
Katie Dowd
Tel. +1 202 271 2209
kdowd@oneweb.net (mailto:kdowd@oneweb.net)
Investors
Joanna Darlington
Tel. +33 6 74 52 15 31
jdarlington@eutelsat.com (mailto:jdarlington@eutelsat.com)
Hugo Laurens-Berge
Tel. +33 6 70 80 95 58
hlaurensberge@eutelsat.com (mailto:hlaurensberge@eutelsat.com)
View source version on businesswire.com:
https://www.businesswire.com/news/home/20250213450733/en/
(https://www.businesswire.com/news/home/20250213450733/en/)
Eutelsat Group
Copyright Business Wire 2025Recent news on Eutelsat Communications SA
See all newsREG-Eutelsat Group Eutelsat Communications: Resignation of Non-executive Director
AnnouncementREG-Eutelsat Group Holding(s) in Company
AnnouncementREG-Eutelsat Group Holding(s) in Company
AnnouncementREG-Eutelsat Group Eutelsat Group: Notice of the Availability of the Half-yearly Financial Report 2024-25
AnnouncementREG-Eutelsat Group Eutelsat Announces Changes to the Composition of the Board of Directors
Announcement