Eutelsat Group (ETL) H2 2024 earnings summary

Executive summary

• FY 2023-2024 results met or exceeded objectives, with revenues of €1,268m and adjusted EBITDA of €719m, driven by strong connectivity growth and the successful Eutelsat/OneWeb merger, creating the first integrated GEO-LEO operator.

• Major operational milestones included the entry into service of Eutelsat 10B, KONNECT VHTS, and the launch of Eutelsat 36D, completing the OneWeb space segment.

• Backlog increased to €3.9bn at June 2024, up 15% year-over-year, with connectivity now representing 56% of the total.

• Strong commercial momentum in connectivity, with major contract wins and growing backlog.

• Successful refinancing with €600m senior notes due 2029, reducing net debt.

Financial highlights

• Total revenues were €1,213m, up 7.2% reported and 5.6% like-for-like year-over-year.

• Adjusted EBITDA was €719m, down 12.9% year-over-year, with margin at 59.3% versus 73.0% last year.

• Net income swung from €315m profit to a €310m loss, impacted by higher depreciation and other operating costs.

• Net debt reduced by €221.3m to €2,544.4m at June 2024; net debt/EBITDA ratio increased to 3.79x.

• Cash Capex was €463m, below initial estimates due to LEO constellation phasing and delays; Gross Capex for FY 2023-24 was €517m.

Outlook and guidance

• FY 2024-25 revenues expected to be stable year-over-year at constant currency and perimeter.

• Adjusted EBITDA margin for FY 2024-25 projected slightly below FY 2023-24, reflecting full OneWeb cost base and service revenue mix.

• Gross Capex for FY 2024-25 guided at €700–800m.

• Targeting medium-term leverage of around 3x and prioritizing investments aligned with debt covenants.

• Full deployment of OneWeb ground network expected by Q2 2025, with continued LEO-driven connectivity growth.