Eutelsat Communications, a leading satellite operator, has achieved a significant milestone with the completion of its all-share merger with OneWeb, the low Earth orbit (LEO) satellite communications network.
While Eutelsat’s headquarters remain in Paris, OneWeb will function as a subsidiary under the name Eutelsat OneWeb, with its operational hub stationed in London. The Eutelsat Group retains its listing on the Euronext Paris Stock Exchange and has initiated the process for a standard listing on the London Stock Exchange.
Dominique D’Hinnin continues in his role as Chairman and Sunil Bharti Mittal, previously Executive Chairman of OneWeb, will become Vice-President (Co-Chair). Eva Berneke continues to be the CEO of Eutelsat Group.
Revenues of Eutelsat Group are expected to grow at a double-digit revenue CAGR over the medium to long-term, reaching €1.32-1.42 billion in FY 2024, €1.55-1.75 billion in FY 2025, and c. €2.0 billion in FY 2027. Adjusted EBITDA for Eutelsat Group is expected to grow at a double digit CAGR over the same period, outpacing revenues growth, rising from a range of €725 million to €825 million in FY 2024 to €900 million to €1.1 billion in FY 2025, and c. €1.4 billion in FY 2027.
The Capex of Eutelsat Group is estimated to be at €725 million to €875 million per annum on average, over the period FY 2024 to FY 2030, with a front-end loaded profile. Beyond 2030, Capex is expected to decrease significantly, as the upgrade, replacement and maintenance of the fleet will be gradual, due to the deployment of innovative intelligent software, rather than generational.
The Eutelsat Group is strategically positioned to be a global leader in space communications, bringing together Eutelsat’s potent GEO fleet and OneWeb’s extensive LEO constellation. This integration will offer customers seamless, fully integrated global connectivity services, combining network density, high throughput, low latency, and ubiquity.
OneWeb’s network, already operational and set to achieve global coverage by the end of 2023, will join forces with the combined GEO-LEO service, introducing new markets and applications. These include Fixed Connectivity (Backhaul, Corporate networks), Government Services, and Mobile Connectivity (Maritime and Inflight). The Eutelsat Group will continue to prioritize Broadcast and video services, delivering innovative solutions at the convergence of broadband and broadcast.
The combined entity is projected to witness a double-digit revenue Compound Annual Growth Rate (CAGR) over the medium to long-term, aiming to reach approximately €2 billion in 2027. Adjusted EBITDA for the combined entity is anticipated to outpace revenue growth, also growing at a double-digit CAGR over the same period.
Eva Berneke, Chief Executive Officer, underlined the unique proposition of the Eutelsat Group as the only GEO-LEO operator in satellite communications capable of offering ubiquitous connectivity. She emphasized the group’s commitment to addressing a broad spectrum of customer requirements and providing hybrid connectivity services globally while delivering industry-leading resilience.
