Eutelsat Communications SA
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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.
Revenue: Eutelsat reported operating verticals revenue of €1,136 million on a reported basis, within the expected range, despite a 4.8% like-for-like decline.
Profitability: Adjusted EBITDA margin was 73%, described as industry-leading, though slightly down from last year due to a changing revenue mix.
Free Cash Flow: Adjusted discretionary free cash flow reached €518 million, well above the target annual average of €420 million.
Segment Trends: Mobile connectivity delivered strong double-digit growth (+26.8%), while video and government services declined.
CapEx Control: Cash CapEx remained stable at €271 million, with guidance for the next two years not to exceed €400 million per year.
OneWeb Merger: The merger with OneWeb is on track to close by the end of Q3 2023, with positive backlog momentum and no cash flow impact from minor revenue recognition delays.
Outlook: Revenue is expected to return to growth next year, with double-digit growth guided for mobile and fixed connectivity segments.