Eutelsat Communications SA
OTC:ETCMY
Eutelsat Communications SA
Eutelsat Communications SA, a cornerstone in the realm of satellite communication, embarked on its journey from the Satellite Applications Project of the European Telecommunications Satellite Organization. Founded in 1977, the company has evolved into a major player in the space industry, providing essential infrastructure that supports television broadcast, broadband connectivity, and data services across the globe. With a fleet of over 35 satellites strategically positioned in geostationary orbit, Eutelsat plays a pivotal role in enabling broadcasters, operators, and government entities to deliver services to remote and underserved areas—places where terrestrial networks falter.
Unlike businesses tied to more tangible assets, Eutelsat capitalizes on its celestial territory. The company derives its revenue primarily from long-term contracts with broadcast companies, telecommunications operators, and internet service providers. These clients rely on Eutelsat's reliable and extensive satellite network to deliver video broadcasting, internet services, and corporate data communications across various geographies. The company leverages its robust satellite positioning and frequency rights to secure and maintain these lucrative agreements, ensuring a steady cash flow. As technological advances reshape communication landscapes, Eutelsat remains at the forefront, continuously innovating to provide connectivity solutions that bridge the digital divide, thereby solidifying its role as an indispensable conduit for global communication.
Eutelsat Communications SA, a cornerstone in the realm of satellite communication, embarked on its journey from the Satellite Applications Project of the European Telecommunications Satellite Organization. Founded in 1977, the company has evolved into a major player in the space industry, providing essential infrastructure that supports television broadcast, broadband connectivity, and data services across the globe. With a fleet of over 35 satellites strategically positioned in geostationary orbit, Eutelsat plays a pivotal role in enabling broadcasters, operators, and government entities to deliver services to remote and underserved areas—places where terrestrial networks falter.
Unlike businesses tied to more tangible assets, Eutelsat capitalizes on its celestial territory. The company derives its revenue primarily from long-term contracts with broadcast companies, telecommunications operators, and internet service providers. These clients rely on Eutelsat's reliable and extensive satellite network to deliver video broadcasting, internet services, and corporate data communications across various geographies. The company leverages its robust satellite positioning and frequency rights to secure and maintain these lucrative agreements, ensuring a steady cash flow. As technological advances reshape communication landscapes, Eutelsat remains at the forefront, continuously innovating to provide connectivity solutions that bridge the digital divide, thereby solidifying its role as an indispensable conduit for global communication.
LEO Growth: Low Earth Orbit (LEO) revenues increased nearly 60% year-on-year, driving strong momentum in connectivity verticals.
Stable Revenue: Total first-half revenue was EUR 592 million, stable on a like-for-like basis but down 2.4% as reported.
Profitability: Adjusted EBITDA margin was 52.1%, down 3.1 points from last year due to video sanctions and LEO ramp-up effects.
CapEx Guidance Cut: Full-year capital expenditure guidance was lowered to around EUR 900 million from the previous EUR 1–1.1 billion.
Refinancing Progress: EUR 1.5 billion capital raise and nearly EUR 1 billion in export credit financing completed, improving credit ratings.
Operational Continuity: Procurement of 440 new LEO satellites ensures continuity for the OneWeb constellation.
Guidance Confirmed: Full-year revenue and EBITDA margin guidance confirmed; net debt/EBITDA guided to 2.7x by year-end due to halted asset disposal.
Video Headwinds: Video revenues declined 12% year-on-year, mainly due to Russian sanctions and underlying business trends.
