Eutelsat Communications has reported revenues of €300 million for the third quarter ended 31 March 2025, remaining stable on a reported basis but declining by 1.9 percent like-for-like compared to the previous year.
Eutelsat’s video revenues decreased by 6.4 percent to €151.7 million, reflecting broader market trends and the linearisation of revenue recognition in the previous quarter. The removal of certain Russian channels under EU Regulation 269/2014 is expected to impact annual revenues by approximately €16 million, with a similar impact on EBITDA.
Despite these challenges, Eutelsat is focusing on renewing and expanding video capacity agreements in strategic regions. Notable agreements include the renewal with ATSS in the MENA region and the extension of services for professional video at the HOTBIRD constellation at 13°East.
Additionally, the company renewed its partnership with BHS, extending capacity on EUTELSAT 21B and EUTELSAT 70B for satellite contribution services in the Middle East and North Africa. The compliance with EU regulations, while impacting revenue, aligns with Eutelsat’s strategic objectives and regulatory obligations.
Eutelsat’s connectivity revenues were €148.9 million for the third quarter, marking a 2.7 percent year-on-year increase but a 1.3 percent decline quarter-on-quarter. Fixed Connectivity revenues amounted to €59.7 million, up 0.8 percent year-on-year, driven by the growth of LEO-enabled solutions, although partially offset by challenging conditions in GEO-enabled consumer broadband in Europe and the cessation of revenue recognition from a specific GEO customer on the KONNECT-VHTS satellite.
Quarter-on-quarter, Fixed Connectivity revenues fell by 7.3 percent, reflecting the impact of a one-off catch-up revenue event from a LEO customer in Q2 and the cessation of GEO customer revenue. Strategically, Eutelsat completed the transfer of KONNECT capacity to the African market, securing a multi-year partnership with Orange Africa and Middle East for regional connectivity.
Additionally, Eutelsat and InterSAT signed a new multi-year agreement for Ku capacity on EUTELSAT 7C for fixed data services in Central and Eastern Africa and renewed their existing capacity contract on EUTELSAT 70B, with discussions underway to potentially add LEO capacity in East Africa.
Eutelsat’s government services revenues were €49.5 million, representing a 10.2 percent year-on-year increase driven by the growth of LEO-enabled solutions and higher demand from non-US governments, while quarter-on-quarter revenues declined by 4.2 percent due to a slowdown in GEO activities.
The Spring 2025 renewal campaign with the US Department of Defense resulted in a renewal rate of less than 50 percent, reflecting shifting geographic priorities under the new administration and broader government spending cuts, including the non-renewal of a significant contract. Excluding this contract, the renewal rate would have been approximately 70 percent.
Eutelsat’s mobile connectivity revenues stood at €39.7 million, down 2.7 percent year-on-year, reflecting lower GEO revenues, partly offset by growing demand for LEO-based solutions. Quarter-on-quarter, revenues were up 14.3 percent underpinned by ramp-up on LEO.
Eutelsat is advancing its strategy in multi-orbit connectivity, combining GEO and LEO capabilities to serve the commercial and business aviation sectors, with over 100 certified antenna installations completed from a backlog of nearly 1,000 aircraft and the first aircraft now in service.
Air Canada became the first airline to adopt the multi-orbit service through Intelsat, while Eutelsat also extended a multi-year, multi-million-dollar capacity agreement with Panasonic on EUTELSAT 10B, reinforcing its GEO offering.
The deployment of KONNECT VHTS capacity for the mobility market is progressing, highlighted by a new agreement with Turksat for Ka-band services.
Baburajan Kizhakedath
