Eutelsat Group (ETL) H2 2024 earnings summary

Executive summary

• Fiscal year 2023-2024 results met or exceeded objectives for revenue and profitability, driven by strong commercial traction in connectivity and the successful Eutelsat/OneWeb merger, creating the first GEO-LEO integrated operator.

• Major operational milestones included the entry into service of Eutelsat 10B, KONNECT VHTS, the launch of Eutelsat 36D, and full deployment of the OneWeb constellation.

• Backlog reached EUR 3.9 billion at June 2024, up 15% year-over-year, with connectivity now representing 56% of the total.

• Strong commercial momentum was supported by major contract wins and a growing backlog.

• Successful refinancing included a €600m bond issuance, addressing 2025 maturities.

Financial highlights

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

• Adjusted EBITDA was EUR 719 million, down 12.9% year-over-year, but above the objective range, with a margin at 59.3% versus 73% last year.

• Net income swung from EUR 315 million profit to a EUR 310 million loss, impacted by one-off items, higher depreciation, and other operating costs.

• Cash CapEx was EUR 463 million, below the expected range, due to CapEx delays and LEO constellation phasing.

• Net debt reduced from EUR 2,766 million to EUR 2,444 million year-over-year.

Outlook and guidance

• Revenue for FY 2024-2025 expected to be flat year-over-year at constant currency and perimeter.

• Adjusted EBITDA for FY 2024-2025 expected slightly below FY 2024, reflecting full OneWeb cost base and cost savings.

• Gross CapEx for FY 2024-2025 guided at EUR 700-800 million.

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

• Connectivity growth expected to offset mid-single digit decline in video revenues.