Eutelsat Reports FY 2023 Revenues and Strategic Shift in Business Model

Eutelsat Communications, a leading satellite operator, has released its financial results for FY 2022-23, showing total revenues of €1,131 million, down by 1.8 percent compared to the previous year. In the fourth quarter, revenues stood at €286 million, reflecting a decline of 2.3 percent.
Video revenues, which contribute 62 percent to the company’s total revenues, experienced a significant drop of 8.3 percent, reaching €705 million. The decline was mainly due to the early non-renewal of a capacity contract with Digiturk from mid-November 2022 and reduced revenues in Europe related to volume reductions with specific resellers. Additionally, the effect of sanctions against Russian and Iranian channels in the second half further impacted video revenues.

Revenue from Government Services, accounting for 12 percent of total revenues, stood at €143 million, marking a decrease of 7.2 percent. However, the fourth quarter saw a notable upswing, with revenues reaching €45 million, a year-on-year increase of 25.8 percent and a quarter-on-quarter surge of 45.0 percent. This increase was primarily driven by a one-off contract of €14 million with the German space agency, DLR. EUTELSAT HOTBIRD 13F provided a service from April at the 0.5°E orbital position, prior to its commissioning at 13°E, which is expected in Q3 2023.

Mobile Connectivity revenues, contributing 10 percent to total revenues, stood at €110 million, reflecting a notable increase of 26.8 percent. The positive momentum was particularly evident in the Maritime sector. In the fourth quarter, revenues reached €27 million, up 20.7 percent year-on-year and 2.9 percent quarter-on-quarter, driven by the commercialization of the third beam on EUTELSAT QUANTUM for a maritime mobility customer.

Revenue from Fixed Connectivity, accounting for 16 percent of total revenues, reached €178 million, showing a slight decline of 2.3 percent year-on-year. Within the Broadband segment, which constitutes 40 percent of this application, revenues remained stable.

The company’s wholesale go-to-market model for distributing satellite broadband capacity over Europe proved successful, leading to the disposal of its European broadband retail activities. The upcoming entry into service of KONNECT VHTS in the second half of 2023 is expected to further support this strategy.

Eva Berneke, Chief Executive Officer of Eutelsat Communications, expressed satisfaction with the strong momentum in the Connectivity verticals, validating the company’s strategy of shifting its business model to address new applications. Additionally, the successful technological advancements in satellite launches and service entries demonstrated Eutelsat’s commitment to innovation and growth in the satellite communications industry.