Eutelsat Group (ETL) Q1 2025 TU earnings summary

Executive summary

• First quarter 2024-25 revenues reached €300 million, up 5.9% year-over-year like-for-like, driven by strong growth in connectivity verticals and successful launch of 20 OneWeb satellites, with all financial objectives confirmed.

• Growth was led by LEO-enabled solutions, with a new multi-launch agreement with Mitsubishi Heavy Industries and commercial wins including Bayobab (MTN Group) in Africa and SoftBank in Japan.

• Backlog increased to €3.9 billion, representing 3.2 years of revenues, with connectivity now accounting for 55% of the backlog.

• Full-year 2024-25 financial objectives and guidance remain confirmed.

Financial highlights

• Total Q1 revenues: €300 million, up 5.9% year-over-year like-for-like; operating verticals revenue: €297 million, up 5.5% year-over-year.

• Video revenues: €152 million (51% of total), down 7.3% year-over-year.

• Fixed connectivity: €57 million (19% of total), up 30.1% year-over-year.

• Government services: €46 million (16% of total), up 20.3% year-over-year.

• Mobile connectivity: €42 million (14% of total), up 18.8% year-over-year.

Outlook and guidance

• FY 2024-25 revenues for the four operating verticals expected to be around the same level as FY 2023-24.

• Adjusted EBITDA margin projected slightly below FY 2023-24's 55% proforma margin.

• Gross capital expenditure guidance: €700–800 million.

• Target leverage level of around three times in the medium term.