REG-Eutelsat Group Eutelsat Group Trading Update

Eutelsat Communications SAAnnouncement

29/01/2024 07:00

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Eutelsat Group Trading Update

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) NO. 596/2014, AND WHICH ALSO FORMS PART OF
DOMESTIC LAW IN THE UNITED KINGDOM PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL)
ACT 2018.

Eutelsat Group (ISIN: FR0010221234 - Euronext Paris / London Stock Exchange:
ETL). Following the merger with OneWeb forming Eutelsat Group, and a review of
trading for the first three months since completion of the merger, Eutelsat
Group provides the following update.

The legacy Eutelsat business remains on track with expected performance and
confirms a return to top line growth for FY 2023-24, mainly driven by the
entry into service of satellites EUTELSAT 10B and KONNECT VHTS.

The results of the LEO activities of OneWeb, while progressing well, with 100%
of the satellites in place and a backlog of $1.1bn(1) at the end of the last
quarter, are running behind schedule relative to the original roadmap. This
reflects delays in the availability of the ground network, as well as a
revenue mix more oriented than expected towards the sale of user terminals,
which impacts margins. The delay in the ground network impacts revenues,
especially in mobility and in certain geographies where market access is still
outstanding.

The deployment of the ground network is progressing well, towards a 90%
completion rate in Q2 2024. We continue to see strong momentum in the take-up
of pre-signed commitments with major customers, and we believe we are on track
towards our longer-term targets.

Nevertheless, this dynamic will not suffice to close the gap relative to our
near-term expectations, and in consequence we are adjusting our financial
objectives for FY 2023-24 as follows (at a €/$ rate of 1.00)(2):


 * Revenues are now expected in a range of €1.25bn to €1.3bn (versus
€1.32bn to €1.42bn previously).


 * Adjusted EBITDA is expected in a range of €650m to €680m (versus €725m
to €825m previously).


 * After synergies, cash capex is expected to remain well contained within a
€725m to €875m per annum average range over the period FY 2025 to FY 2030;
Cash capex for FY 2024 is expected in a range between €600m and €650m.


 * We also continue to target leverage of c.3x in the medium term.

To allow for a more accurate assessment of prospects in the context of the
rapid development of OneWeb’s business, financial objectives for FY 2024-25
will be reviewed and shared on the occasion of Eutelsat Group’s FY 2023-24
Results on August 2nd, 2024; previously communicated objectives for FY 2024-25
are meanwhile suspended.

Management remains confident in the prospects of OneWeb and the potential of
Eutelsat Group’s unique combined GEO-LEO offer. As the constellation
achieves full global operational coverage, we anticipate an acceleration in
revenues and continue to target double-digit CAGR in revenues and Adjusted
EBITDA between FY 2024 and FY 2028.
                                                                                                                                                                                                                                                                                                                                                             
 A conference call hosted by Management                                                                                                                                                                                                                                                                                                                      
 will take place at                                                                                                                                                                                                                                                                                                                                          
 08.30h CET, today, 29(th) January 2024                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                             
 Webcast link:                                                                                                                                                                                                                                                                                                                                               
 https://channel.royalcast.com/landingpage/eutelsat-en/20240129_1/                                                                                                                                                                                                                                                                                           
 (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fchannel.royalcast.com%2Flandingpage%2Feutelsat-en%2F20240129_1%2F&esheet=53888548&newsitemid=20240128681390&lan=en-US&anchor=https%3A%2F%2Fchannel.royalcast.com%2Flandingpage%2Feutelsat-en%2F20240129_1%2F&index=1&md5=bcc94bd15ecd95ca2f268128c8627c1f)                               
 (The webcast link will remain available for replay)                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                             
 Conference call:                                                                                                                                                                                                                                                                                                                                            
 France: +33 (0) 1 7037 7166                                                                                                                                                                                                                                                                                                                                 
 UK: +44 (0) 33 0551 0200                                                                                                                                                                                                                                                                                                                                    
 USA: +1 786 697 3501                                                                                                                                                                                                                                                                                                                                        
 Quote Eutelsat to the operator when connecting to the call                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                             


About Eutelsat Communications

Founded in 1977, Eutelsat Communications is one of the world's leading
satellite operators. With a global fleet of satellites and associated ground
infrastructure, Eutelsat enables clients across Video, Data, Government, Fixed
and Mobile Broadband markets to communicate effectively to their customers,
irrespective of their location. Around 7,000 television channels operated by
leading media groups are broadcast by Eutelsat to one billion viewers equipped
for DTH reception or connected to terrestrial networks. Committed to promoting
all facets of sustainable development across its business activities, Eutelsat
leverages its in-orbit resources to help bridge the digital divide while
maintaining a safe and uncluttered space environment. As an attractive and
socially responsible employer, Eutelsat assembles 1,200 men and women from 50
countries who are dedicated to delivering the highest quality of service.
Eutelsat Communications is listed on the Euronext Paris Stock Exchange
(ticker: ETL).

For more about Eutelsat go to https://www.eutelsat.com/en/home.html
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.eutelsat.com%2Fen%2Fhome.html&esheet=53888548&newsitemid=20240128681390&lan=en-US&anchor=https%3A%2F%2Fwww.eutelsat.com%2Fen%2Fhome.html&index=2&md5=55b7758fd55da914c0282919937fce35)

Find out more at www.eutelsat.com/oneweb
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.eutelsat.com%2Foneweb&esheet=53888548&newsitemid=20240128681390&lan=en-US&anchor=www.eutelsat.com%2Foneweb&index=3&md5=d79558b827e1336855c8b77b30397009)

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.

For the purposes of market abuse regulation (EU) no. 596/2014, and which also
forms part of domestic law in the United Kingdom pursuant to the European
Union (Withdrawal) Act 2018, the person responsible for arranging release of
this Announcement on behalf of the Company is David Bertolotti, Group General
Counsel and Company Secretary.

Financial calendar

Eutelsat Communications' 12-month fiscal year ends on June 30.

The following financial calendar is provided for information purposes only. It
is subject to change and will be regularly updated.
 First Half 2023-24 results                      16 February 2024  
 Third quarter and Nine Months 2023-24 revenues  14 May 2024       
 Full-year 2023-24 results                       2 August 2024     


(______________________________

1) Including $275m Take-or-Pay Agreement with Eutelsat

(2) Pro-forma figures with 12 months’ OW figures (actual consolidation as of
1st October 2023)

PRESS 

Joanna Darlington

Tel.: +33 674 521 531

jdarlington@eutelsat.com (mailto:jdarlington@eutelsat.com)

Anita Baltagi

Tel.: +33 1 53 98 47 47

abaltagi@eutelsat.com (mailto:abaltagi@eutelsat.com)

Katie Dowd

Tel. +12022712209

kdowd@oneweb.net (mailto:kdowd@oneweb.net)

INVESTOR RELATIONS 

Joanna Darlington

Tel.: +33 674 521 531

jdarlington@eutelsat.com (mailto:jdarlington@eutelsat.com)

Hugo Laurens-Berge

hlaurensberge@eutelsat.com (mailto:hlaurensberge@eutelsat.com)



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