Eutelsat reported total revenues of €1,243.7 million for FY 2024-25, marking a 2.5 percent increase on a reported basis.
Revenues from the four core operating verticals rose by 0.8 percent to €1,226.3 million. A standout performance came from Low Earth Orbit (LEO) services, with revenues soaring over 80 percent to €186.8 million, now accounting for approximately 15 percent of total revenues.
This sharp LEO growth offset declines in traditional Geostationary Orbit (GEO) services, particularly in the video segment, which fell 6.5 percent to €608.2 million due to market maturity and regulatory actions such as the removal of Russian channels.
Connectivity revenues — now equal in weight to video — grew 10.6 percent to €618.1 million, driven by a 24.1 percent increase in government services and a 4.3 percent rise in fixed connectivity. Mobile connectivity remained largely stable, with a modest 0.3 percent gain, while GEO connectivity revenues declined by over 7 percent.
In Q4, total revenues stood at €337.5 million, broadly unchanged year-on-year. Despite revenue growth, profitability came under pressure, with adjusted EBITDA declining by 5.9 percent to €676.2 million, largely due to higher costs associated with the full-year consolidation of OneWeb and LEO ramp-up. The EBITDA margin fell to 54.4 percent from 59.3 percent. The company also reported a significant net loss of €1,081.9 million, driven by impairments and increased financial expenses.
Customer dynamics shifted notably during the year, with rising demand for LEO-enabled services across all segments. Government clients significantly expanded engagement, underpinned by a €1 billion agreement with France’s Ministry of Armed Forces and a UK deal to provide LEO connectivity to diplomatic missions worldwide.
In Fixed Connectivity, interest was fuelled by LEO performance, including a new agreement with Orange to serve enterprise and government customers. Mobile connectivity saw maritime growth supported by a deal with India’s Station Satcom, while aviation entered a ramp-up phase with over 100 aircraft installations completed and nearly 1,000 more in backlog.
Meanwhile, video customers continued to rely on Eutelsat’s major broadcast hotspots, with renewals from clients such as SSR SRG and wedotv, though overall demand declined due to market saturation and regulatory restrictions.
Eutelsat’s strategy in FY 2024-25 centered on accelerating its transformation from a traditional GEO satellite operator to a fully integrated GEO-LEO provider, following its merger with OneWeb. A key pillar of this approach is the rapid scale-up of LEO capabilities, which have delivered strong commercial traction.
The company is positioning itself as a cornerstone in Europe’s sovereign satellite infrastructure, playing a leading role in the EU’s IRIS² program and supporting defense initiatives through high-profile government contracts.
Looking ahead, Eutelsat is channeling capital expenditure of €1.0–1.1 billion in FY 2025-26, largely focused on next-generation LEO satellites.
To support its strategic roadmap, a €1.5 billion capital increase — backed by key shareholders including the French State and Bharti — is underway. While near-term GEO headwinds remain, particularly in video, LEO momentum is expected to drive long-term growth and profitability, reinforcing Eutelsat’s position in the fast-growing B2B connectivity market and sovereign communications space.
TelecomLead.com News Desk
