Eutelsat Group (ETL) H1 2025 earnings summary

Executive summary

• H1 2024-25 revenues rose 5.9% year-over-year to €606.2 million, driven by strong growth in connectivity and government services, offsetting a 6.4% decline in video revenues.

• Adjusted EBITDA margin was stable at 55.2% like-for-like, with objectives for FY 2024-25 confirmed despite a net loss of €873.2 million due to €535 million goodwill and €117 million satellite impairments on GEO assets.

• Strategic progress includes EU approval of the €10.6 billion IRIS² multi-orbit constellation, with Eutelsat investing ~€2 billion and targeting €6.5 billion in concession revenues.

• Exercised put option for sale-and-lease-back of ground infrastructure, expected to generate €500 million net proceeds in H1 2026.

• Major LEO expansion underway, including procurement of 100 new satellites for OneWeb extension and roadmap for IRIS² integration.

Financial highlights

• Revenues: €606.2 million (+5.9% reported, +4.4% like-for-like year-over-year); operating verticals up 3.9% like-for-like.

• Adjusted EBITDA: €334.9 million (-8.4% reported, +4.9% like-for-like); margin at 55.2%.

• Net loss of €873.2 million, mainly due to €535 million goodwill and €117 million satellite impairments.

• Net debt at €2,695.8 million; net debt/EBITDA ratio improved to 3.92x from 4.13x.

• Capex for H1 at €174.8 million; FY 2024-25 Capex now expected at €500-600 million, down from €700-800 million.

Outlook and guidance

• FY 2024-25 revenue and adjusted EBITDA margin objectives reaffirmed; revenues expected to be stable and margin slightly below FY 2023-24.

• Capex guidance for FY 2024-25 reduced to €500-600 million due to LEO investment timing and GEO capex vigilance.

• Medium-term leverage target remains at approximately 3x.

• IRIS² expected to generate €6.5 billion in revenues over 12 years, with minimum IRR of 10-12%.

• LEO constellation extension to require €2-2.2 billion investment through 2028-2029.