- First Half operating verticals revenues of €571m, confirming
return to topline growth, driven by Eutelsat GEO business and
inclusion of OneWeb LEO business in the Second Quarter
- Continued rise in secured backlog for LEO business despite
delays in ground segment roll-out
- Design of Next Generation LEO constellation securing
continuity of customer service with stepwise capacity and
functionality improvements, leading to reduction in capital
expenditure for the period 2025-30
Regulatory News:
The Board of Directors of Eutelsat Communications (ISIN:
FR0010221234 - Euronext Paris / London Stock Exchange: ETL),
chaired by Dominique D’Hinnin, reviewed the financial results for
the Half Year ended 31 December 2023.
Key Financial Data
6M to Dec. 2022
6M to Dec. 20231
Change
Change Pro Forma2
P&L
Revenues - €m
573.8
572.6
-0.2%
1.0%
"Operating Verticals" revenues reported -
€m
581.9
571.1
-1.9%
1.2%
Adjusted EBITDA - €m
419.0
365.6
-12.7%
-
Adjusted EBITDA - %
73.0%
63.8%
-9.2pt
-
Operating income - €m
151.2
-134.4
n.a.
-
Group share of net income - €m
51.9
-191.3
n.a.
-
Financial structure
Net debt - €m
2,996.0
2,619.1
-376.7 M€
-
Net debt/ Adjusted EBITDA - X
3.55
4.13
+0.58 pt
-
Backlog - €bn
3.7
3.9
6.1%
Note: This press release contains
figures derived from the consolidated half-year accounts prepared
under IAS 34 and subject to a review by the Auditors (ISRE 2410).
They were reviewed by the Audit Committee on 14 February 2024 and
approved by the Board of Directors on 15 February 2024. The
auditors’ review procedures have been carried out and the review
report is in the process of being issued. The consolidated half
year accounts will be available on the www.eutelsat.com/investors
website early next week. Adjusted EBITDA, Adjusted EBITDA margin,
net debt / Adjusted EBITDA ratio and Cash Capex are considered
Alternative Performance Indicators. Their definition and
calculation are in Appendix 3 of this document.
Eva Berneke, Chief Executive Officer of Eutelsat Communications,
said: “The Eutelsat GEO business is performing in line with
expectations, confirming the return to top line growth for Eutelsat
historic scope for FY 2023-24, driven by the availability of
EUTELSAT 10B and KONNECT VHTS. The LEO activities of OneWeb are
progressing well, with 100% of the constellation in place and a
secured and growing backlog. Delays in the availability of the
ground network have impacted revenues, with a mix more oriented
towards the sale of user terminals affecting margins, leading us to
adjust our expectations for FY 2023-24. We nevertheless remain
confident in the prospects of OneWeb, and the potential of Eutelsat
Group’s unique combined GEO-LEO offer and anticipate an
acceleration in revenues in the coming months as the constellation
achieves full global operational coverage of the ground network. We
are progressing well on the design of the next generation of the
OneWeb constellation, based on a stepwise increase in capacity and
functionality with a progressive extension which also fully
utilizes the current in-orbit assets. This will result in a
reduction in expected capital expenditure for the period
2025-30.”
KEY EVENTS
- Eutelsat OneWeb combination effective since late September
2023.
- Operational successes including entry into service of KONNECT
VHTS and EUTELSAT 10B as well as completion of space-segment of
OneWeb Constellation.
- First Half Operating Vertical revenues of €571.1 million up
1.2% on a like-for-like basis.
- Second Quarter Operating Vertical revenues up +3.9% on
like-for-like basis and by 5.4% quarter-on-quarter.
- Eutelsat legacy businesses return to growth in FY 2024 thanks
notably to availability of EUTELSAT 10B and KONNECT VHTS
incremental capacity.
- OneWeb LEO business behind schedule due to ground segment
delays but expected to accelerate in coming months as gateway
installations increase, with 90% coverage targeted by
mid-2024.
- Design of Next Generation OneWeb constellation focused on
progressive extension of current in-orbit assets, leading to
reduction in expected capital expenditure for the period
2025-30.
ANALYSIS OF REVENUES3
In € millions
6M to Dec 2022
6M to Dec 2023 1
Change
Reported
Like-for-like2
Video
365.9
331.1
-9.5%
-8.0%
Government Services
66.9
74.2
11.0%
10.5%
Mobile Connectivity
55.9
71.2
27.2%
35.6%
Fixed Connectivity
93.2
94.6
+1.5%
9.2%
Total Operating Verticals
581.9
571.1
-1.9%
1.2%
Other Revenues
-8.1
1.6
n.a.
n.a.
Total
573.8
572.6
-0.2%
1.0%
EUR/USD exchange rate
1.01
1.08
Total revenues for the First Half of FY 2023-24 stood at
€572.6 million, down by 0.2% on a reported basis and up by 1.0%
like-for-like.
Revenues of the four Operating Verticals (i.e., excluding ‘Other
Revenues’) stood at €571.1 million. They were up 1.2% on a
like-for-like basis, excluding a negative currency impact of €18
million.
Second Quarter revenues stood at €298.7 million up 3.7%
like-for-like. Revenues of the four Operating Verticals stood at
€298.6 million, up 3.9% year-on-year on a like-for-like basis, and
up 5.4%4 quarter-on-quarter.
In € millions
Q2 2022-23
Q2 2023-241
Change
Reported
Like-for-like2
Video
182.4
167.6
-8.1%
-6.4%
Government Services
32.2
40.7
26.6%
17.4%
Mobile Connectivity
30.0
36.0
20.1%
28.2%
Fixed Connectivity
46.8
54.3
16.1%
17.6%
Total Operating Verticals
291.4
298.6
2.5%
3.9%
Other Revenues
-5.0
0.1
n.a.
n.a.
Total
286.4
298.7
4.3%
3.7%
EUR/USD exchange rate
1.00
1.07
Note: Unless otherwise stated, all
variations indicated below are on an unaudited like-for-like basis,
ie, at constant currency and perimeter. The variation is calculated
as follows: i) H1 2023-24 USD revenues are converted at H1 2022-23
rates; ii) the contribution of the BigBlu retail broadband
operations from 1st July 2022 to 31 December 2022 is excluded from
H1 2022-23 revenues iii) H1 2022-23 and H1 2023-24 revenues are
restated include the contribution of OneWeb as if the operation had
been completed from July 1st, 2022; iv) Hedging revenues are
excluded.
Video (58% of revenues)
First Half Video revenues were down by 8.0% to €331.1
million, reflecting the impact of the early non-renewal of a
capacity contract with Digitürk from mid-November 2022 as well as
lower revenues in Europe related to volume reductions with certain
resellers. They were also impacted by the effect of sanctions
against some Russian and Iranian channels.
Second Quarter revenues stood at €167.6 million down by
6.4% year-on-year, and up 1.9% on a sequential basis. This increase
was partly due to a one-off contract of c. €3 million in Latin
America related to technical assistance for a customer.
Professional Video revenues, which account for less than 10% of
the Video vertical, also decreased, reflecting ongoing structural
headwinds.
The Second Half basis of comparison will no longer reflect the
impact of sanctions against Russian and Iranian channels nor the
Digitürk non-renewal, and revenues are expected broadly in line
with the wider market trend of a mid-single digit decline.
Government Services (13% of revenues)
First Half Government Services revenues stood at €74.2
million, up by 10.5% year-on-year, reflecting the slightly better
renewal rate of the Fall US DoD campaign (above 80%) as well as the
contribution of the EGNOS GEO-4 contract on HOTBIRD 13G. Revenues
also included a contribution from OneWeb.
Second Quarter revenues stood at €40.7 million, up by
17.4% year-on-year and by 4.2% quarter-on-quarter.
The Second Half will benefit from the full period contribution
from OneWeb’s LEO-enabled connectivity solutions, as well as the
contribution from the abovementioned EGNOS GEO-4 contract on
HOTBIRD 13G (generating €100m in revenues over 15 years).
Mobile Connectivity (12% of revenues)
First Half Mobile Connectivity revenues stood at €71.2
million, up 35.6% year-on-year, underpinned by the entry into
service of the high-throughput satellite, EUTELSAT 10B, with
significant pre-commitments and the commercialization of the final
beam on EUTELSAT QUANTUM for a maritime mobility client.
Second Quarter revenues stood at €36.0 million, up 28.2%
year-on-year and up by 0.2% quarter-on-quarter, reflecting the
tougher basis of comparison due to the above-mentioned entry into
service of incremental capacity during the First Quarter.
Over the Full Year, Mobile Connectivity is expected to see
double-digit growth driven by strong demand for both GEO and
LEO-based connectivity solutions.
Fixed Connectivity (17% of revenues)
First Half Fixed Connectivity revenues stood at €94.6
million, up 9.2% year-on-year, mainly reflecting the entry into
service of KONNECT VHTS, as well as a contribution from LEO
connectivity.
Second Quarter revenues stood at €54.3 million, up 17.6%
year-on-year and by 23.7% on a sequential basis, mainly reflecting
contracts that started from mid-October following the entry into
service of KONNECT VHTS.
This positive dynamic is expected to translate into double
digit-growth for the Full Year on the back of KONNECT VHTS as well
as the contribution from the LEO connectivity offer.
Other Revenues
In the First Half, Other Revenues amounted to €1.6 million
versus -€8.1 million a year earlier. They included a €2 million
negative impact from hedging operations versus a negative impact of
€12 million a year earlier.
BACKLOG
The backlog stood at €3.9 billion on 31 December 2023 versus
€3.7 billion a year earlier. This increase reflects the
contribution of OneWeb’s backlog, now standing at €7005 million, up
23% over the last quarter, partly offset by natural erosion of the
backlog, especially in the Video segment, in the absence of major
renewals.
The backlog was equivalent to 3.5 times FY 2022-23 revenues,
with Video representing 46% of the total. This reflects the
increasing momentum of the telecom pivot.
31 Dec. 2022
30 June 2023
31 Dec. 2023
Value of contracts (in billions of
euros)
3.7
3.4
3.9
In years of annual revenues based on prior
fiscal year
3.2
3.0
3.5
Share of Video application
59%
59%
46%
Note: The backlog represents future revenues from
capacity or service agreements and can include contracts for
satellites under procurement. Managed services are not included in
the backlog.
PROFITABILITY
Adjusted EBITDA stood at €365.6 million on 31 December
2023 compared with €419.0 million a year earlier, down by 12.7%.
The Adjusted EBITDA margin stood at 64.1% at constant
currency (63.8% reported) versus 73.0% a year earlier. This
Adjusted EBITDA margin is reflective of the progressive rebalancing
of our business towards connectivity applications.
Operating costs were €52.2 million higher than last
fiscal year reflecting the impact of the consolidation of OneWeb.
This was partially offset by a positive perimeter effect from the
disposal of the BigBlu retail broadband operations, as well as
lower Bad Debt especially in Video.
Group share of net income stood at -€191.3 million versus
+€51.9 million a year earlier. This reflected:
- Other operating expenses of -€183.9 million, compared to
-€34.0 million last year, mainly due to fair value adjustment of
shares owned by Eutelsat before the combination.
- Higher depreciation of -€316.1 million versus -€233.8
million a year earlier, reflecting the perimeter effect from OneWeb
as well as higher in-orbit and on-ground depreciation. (Four
satellites, HOTBIRD 13F, HOTBIRD 13G, EUTELSAT 10B and KONNECT VHTS
entered service between April and October 2023).
- A net financial result of -€60.7 million versus -€56.0
million a year earlier, reflecting the higher interest rates,
partly offset by favourable evolution of foreign exchange gains and
losses.
- Corporate Income Tax: gain of €28.5 million versus tax
cost of €0.8 million last year reflective the recognition of
positive deferred tax on the C-band payment as well as a reduction
of the French corporate tax rate.
- Losses from associates of -€23.0 million, reflecting the
contribution of the stake in OneWeb in the First Quarter, which in
FY 2022-23 was from July 2022 onwards.
CASH CAPEX
Cash Capex amounted to €224 million, versus €194 last
year; this increase reflects the perimeter effect from the
consolidation of OneWeb, and is not representative of the decrease
in Capex, for both Eutelsat and OneWeb, due to the phasing of
satellite program delivery and launch last year during the first
semester.
FINANCIAL STRUCTURE
On 31 December 2023, net debt stood at €2,619.1 million, down
€146.6 million versus end of June 2023. It reflected: i) receipt of
phase II C-Band proceeds net of tax of €330.4 million; ii) a
negative impact from our financing activities mostly related to
structured debt combined with iii) a decrease in cash flow from
operating activities due to the consolidation with OneWeb.
The net debt to Adjusted EBITDA ratio stood at 4.13 times,
compared to 3.55 times at end-December 2022 and 3.35 times at
end-June 2023.
The average cost of debt after hedging stood at 3.16% (2.7% in
H1 2022-23). The weighted average maturity of the Group’s debt
stood at 3.0 years, compared to 4.1 years at end-December 2022.
Undrawn credit lines and cash stood at around €1.8 billion.
UPDATE ON ONEWEB INTEGRATION
The combination between Eutelsat and OneWeb has been effective
since end September 2023. Since then, we have been fully focused on
the integration of the two companies, as well as driving the
operational and commercial momentum of OneWeb:
The space segment of the constellation is fully up and running
and delivering proven performance.
OneWeb’s order backlog continues to grow, now standing at
€700m5, up by 23% over one quarter, while we are seeing strong
commercial traction with several deals activated with major
customers. We are making progress on the ground roll-out following
recently reported delays and we are on track for 90% network
coverage by mid-2024.
The progress of the integration enables us to confirm the
synergies expected from the operation. In particular, cost
synergies6 are fully on track, and we have scope to exceed our
original plan.
Capex synergies also confirmed. Eutelsat Group is progressing as
planned in its evaluation of the requirements for the Next
Generation OneWeb constellation, with potential solutions focused
on service continuity and a stepwise enhancement of the OneWeb
services. This focus is informed by operational and commercial
in-market experience now that the constellation is in service.
The Next Gen will progressively embark additional capacity and
enhanced performances compared to Gen 1, with the scope to upgrade
both constellation services and performances progressively.
The cost of this approach is lower than previous estimates for
the build-out of the OneWeb Next Generation.
Thus, we are adjusting our mid-term capex estimates: Cash capex
for FY 2024 remains expected in a range between €600m and €650m.
For the period FY 2025 to FY 2030, cash capex7 after synergies is
now expected in a range of €600m to €700m on average per annum
(versus €725m to €875m per annum previously).
OUTLOOK AND FINANCIAL OBJECTIVES
The legacy Eutelsat business remains on track with expected
performance and confirms a return to top line growth for FY
2023-24, mainly driven by the entry into service of satellites
EUTELSAT 10B and KONNECT VHTS.
The results of the LEO activities of OneWeb, while progressing
well, with 100% of the satellites in place and a growing backlog at
the end of the last quarter. As reported in our Trading Update of
29th January 2024, they are running behind schedule relative to the
original roadmap. This reflects delays in the availability of the
ground network, impacting revenues, especially in mobility and in
certain geographies where market access is still outstanding, as
well as a revenue mix more oriented than expected towards the sale
of user terminals, which impacts margins.
The deployment of the ground network is progressing well,
towards a 90% completion rate in Q2 2024. We continue to see strong
momentum in the take-up of pre-signed commitments with major
customers, and we believe we are on track towards our longer-term
targets.
Nevertheless, this dynamic will not suffice to close the gap
relative to our near-term expectations, and in consequence we are
adjusting our financial objectives for FY 2023-24 as follows (at a
€/$ rate of 1.00)8:
- Revenues are now expected in a range of €1.25bn to €1.3bn
(versus €1.32bn to €1.42bn previously).
- Adjusted EBITDA is expected in a range of €650m to €680m
(versus €725m to €825m previously).
- Cash capex for FY 2024 remains expected in a range between
€600m and €650m after synergies; for the period FY 2025 to FY 2030,
the integration of the revised capex budget for OneWeb NextGen
means cash capex 7 is now expected between €600m to €700m on
average per annum (versus €725m to €875m per annum
previously).
- We also continue to target leverage of c.3x in the medium
term.
To allow for a more accurate assessment of prospects in the
context of the rapid development of OneWeb’s business, financial
objectives for FY 2024-25 will be reviewed and shared at Eutelsat
Group’s FY 2023-24 Results on August 2nd, 2024; previously
communicated objectives for FY 2024-25 are meanwhile suspended.
Management remains confident in the prospects of OneWeb and the
potential of Eutelsat Group’s unique combined GEO-LEO offer. As the
constellation achieves full global operational coverage, we
anticipate an acceleration in revenues and continue to target
double-digit CAGR in revenues and Adjusted EBITDA between FY 2024
and FY 2028.
Note: This outlook is based on the
revised deployment plan outlined in the Half-Year 2023-2024 results
presentation. It assumes no further material deterioration of
revenues generated from Russian customers.
UPDATE ON THE GEOSTATIONARY FLEET
Since 1st July 2023, the following changes have occurred in the
Geostationary fleet:
- EUTELSAT 10B entered service in July 2023
- EUTELSAT 33F, formerly HOTBIRD 13Bc started operation at 33°E
in September 2023 replacing EUTELSAT 33E, which is being relocated
to the American arc.
- KONNECT VHTS entered operational service in October 2023.
- HOTBIRD 13F entered service at 13°E in September 2023
- EUTELSAT 12WE was deorbited in July 2023
- EUTELSAT 10A was deorbited in November 2023
- EUTELSAT 113 West A ceased operation in January 2024
Following these operations, the geostationary fleet stands at 35
satellites.
CORPORATE GOVERNANCE AND SOCIAL
RESPONSIBILITY
Governance
The Annual General Meeting of Shareholders of Eutelsat
Communications was held on 23 November, in Paris. All the
resolutions were approved. They included notably:
- Approval of the accounts.
- Compensation report and policy of corporate officers.
- Authorization to the Board of Directors to purchase the
Company’s shares.
Changes to Eutelsat Group Executive Committee:
David Bertolotti, Secretary General & Company Secretary,
will leave Eutelsat Group at the end of February 2024 to return to
French Ministry of Europe and Foreign Affairs. Following David’s
departure, the teams he currently leads will be joining new
departments: Institutional affairs will join the Strategy and
Resources Department (Jean-Hubert Lenotte), CISO, Security, Legal,
Compliance will be regrouped with HR, Transformation, and Internal
Coms to form a new General Secretary Department (Anne Carron).
Joanna Darlington was appointed as Chief Communications and
Investor Relations Officer on 2nd January 2024, replacing Vanessa
Mahoney.
Corporate Social Responsibility
On 12th September 2023, Eutelsat publicly released its
Extra-Financial Performance Statement for the fiscal year 2022,
integrated into the Universal Registration Document. This statement
highlights the environmental, social, and governance issues,
providing details on the Group’s CSR policy, its carbon footprint,
and a report on its ESG (Environmental, Social, and Governance)
indicators.
On 19th October, the Group announced its environmental roadmap
with ambitious objectives to reduce its carbon impact and combat
climate change, in line with the requirements of the Paris
Agreement. By 2030, Eutelsat commits to a 50% reduction in its
greenhouse gas emissions related to energy consumption (Scopes 1+2)
compared to the 2021 reference year. The Group will submit these
objectives to the Science Based Targets initiative (SBTi) this year
to obtain an independent assessment and validation of these
goals.
Following the integration of OneWeb into its activities,
Eutelsat Group will expand the scope of its Scope 3 emissions
calculation to include the Low Earth Orbit (LEO) satellite
constellation and associated ground infrastructure.
Half year results presentation
Eutelsat Group will present its results on Friday, February
16, 2024, by conference call and webcast at 9:00
CET.
Click here to attend the webcast
presentation. (The webcast link will remain available for
replay)
It is not necessary to dial into the conference call, unless you
are unable to join the webcast URL
If needed, please dial one of these numbers:
+33 (0)1 7037 7166 (from France) +44 (0)33 0551
0200 (from the U.K) Quote “Eutelsat” to the operator when
connecting to the call.
Documentation
The consolidated half year accounts will be available on the
www.eutelsat.com/investors website early next week.
Financial calendar
The financial calendar below is provided for information
purposes only. It is subject to change and will be regularly
updated.
- 14 May 2024: Third quarter and nine month 2023-24 revenues
- 2 August 2024: Full Year 2023-24 results
About Eutelsat Group
Eutelsat Group is a global leader in satellite communications,
delivering connectivity and broadcast services worldwide. The Group
was formed through the combination of Eutelsat and OneWeb in 2023,
becoming the first fully integrated GEO-LEO satellite operator with
a fleet of 35 geostationary (GEO) satellites and a Low Earth Orbit
(LEO) constellation of more than 600 satellites.
The Group addresses the needs of customers in four key verticals
of Video, where it distributes more than 6,500 television channels,
and the high-growth connectivity markets of Mobile Connectivity,
Fixed Connectivity, and Government Services. Eutelsat Group’s
unique suite of in-orbit assets and on-ground infrastructure
enables it to deliver integrated solutions to meet the needs of
global customers. The Company is headquartered in Paris and
Eutelsat Group employs more than 1,700 people from more than 50
countries.
The Group is committed to delivering safe, resilient, and
environmentally sustainable connectivity to help bridge the digital
divide. The Company is listed on the Euronext Paris Stock Exchange
(ticker: ETL) and the London Stock Exchange (ticker: ETL).
Find out more at www.eutelsat.com
Disclaimer
The forward-looking statements included herein are for
illustrative purposes only and are based on management’s views and
assumptions as of the date of this document.
Such forward-looking statements involve known and unknown risks.
For illustrative purposes only, such risks include but are not
limited to: risks related to the health crisis; operational risks
related to satellite failures or impaired satellite performance, or
failure to roll out the deployment plan as planned and within the
expected timeframe; risks related to the trend in the satellite
telecommunications market resulting from increased competition or
technological changes affecting the market; risks related to the
international dimension of the Group’s customers and activities;
risks related to the adoption of international rules on frequency
coordination and financial risks related, inter alia, to the
financial guarantee granted to the Intergovernmental Organization's
closed pension ’und, and foreign exchange risk.
Eutelsat Communications expressly disclaims any obligation or
undertaking to update or revise any projections, forecasts or
estimates contained in this document to reflect any change in
events, conditions, assumptions or circumstances on which any such
statements are based, unless so required by applicable law.
The information contained in this document is not based on
historical fact and should not be construed as a guarantee that the
facts or data mentioned will occur. This information is based on
data, assumptions and estimates that the Group considers as
reasonable.
APPENDICES
Appendix 1: Additional financial
data
Extract from the consolidated income statement (€ millions)
Six months ended December 31
2022
20231
Change (%)
Revenues
573.8
572.6
-0.2%
Operating expenses
(154.8)
(207.0)
33.7%
Adjusted EBITDA
419.0
365.6
-12.7%
Depreciation and amortisation
(233.8)
(316.1)
35.2%
Other operating income (expenses)
(34.0)
(183.9)
n.a.
Operating income
151.2
(134.4)
n.a.
Financial result
(56.0)
(60.7)
-8.4%
Income tax expense
(0.8)
28.5
n.a.
Income / (loss) from associates
(39.1)
(23.0)
-41.2%
Portion of net income attributable to
non-controlling interests
(3.4)
(1.8)
n.a.
Group share of net income
51.9
(191.3)
n.a.
Extract from the consolidate statement of cash flows
(€millions)
Six months ended December 31
2022
20231
Net income
55.3
-189.5
Result from associates
39.1
23.0
Tax and interest expenses, other operating
items9
57.8
111.7
Depreciation, amortisation and
provisions
246.8
413.3
Deferred taxes
-15.8
-30.2
Changes in accounts receivable
6.3
-9.1
Changes in assets held under customer
contracts and other assets
8.1
-36.3
Changes in accounts payable
5.1
-15.1
Changes in liabilities associated with
customer contracts and other liabilities
-37.0
3.5
Taxes paid
-12.4
15.3
Net cash flows from operating
activities
353.3
286.5
Acquisitions of satellites, other property
and equipment, and intangible assets
-166.5
-294.7
Acquisitions of equity investments and
other movements10
-29.2
298.0
Net cash flows from investing
activities
-195.7
3.3
Distributions
-80.6
0.0
Repayment of borrowings11
-300.0
-164.0
Repayment of lease liabilities
-27.8
-19.0
Loan set-up fees
-
-2.4
Interest and other fees paid
-77.4
-85.6
Transactions with non-controlling
interests12
-15.5
-26.0
Premiums and termination indemnities on
derivatives settled
-31.0
-
Proceeds on asset disposals13
-
330.4
Increase in debt and others
-
90.0
Net cash flow from financing
activities
-532.2
123.4
Impact of exchange rate on cash and cash
equivalents
1.7
1.7
Increase/(Decrease) in cash and cash
equivalents
-373.0
415.0
Cash and cash equivalents, beginning of
period
680.5
482.2
Cash and cash equivalents, end of
period
307.4
897.2
Appendix 2: Quarterly revenues by
application
Quarterly Reported revenues FY 2022-23 and H1 2023-24
The table below shows quarterly reported revenues FY 2022-23 and
H1 2023-24.
In € millions
Q1
Q2
Q3
Q4
FY
Q1
Q21
2022-23
2022-23
2022-23
2022-23
2022-23
2023-24
2023-24
Video
183.5
182.4
169.3
169.5
704.8
163.5
167.6
Government Services
34.7
32.2
31.4
45.1
143.4
33.5
40.7
Mobile Connectivity
25.9
30.0
26.9
27.3
110.1
35.2
36.0
Fixed Connectivity
46.4
46.8
44.0
40.6
177.8
40.2
54.3
Total Operating Verticals
290.5
291.4
271.6
282.6
1,136.1
272.5
298.6
Other Revenues
-3.1
-5.0
0.4
3.0
-4.8
1.5
0.1
Total
287.4
286.4
272.0
285.5
1,131.3
274.0
298.7
Appendix 3: Alternative performance
indicators
In addition to the data published in its accounts, the Group
communicates on three alternative performance indicators which it
deems relevant for measuring its financial performance: Adjusted
EBITDA, Cash Capex and Discretionary free cash flow (DFCF). These
indicators are the object of reconciliation with the consolidated
accounts.
Adjusted EBITDA, Adjusted EBITDA margin and Net debt /
Adjusted EBITDA ratio
In compliance with ESMA recommendations, as of 30 June 2023,
Eutelsat’s “EBITDA” will evolve to “Adjusted EBITDA”. This change
of terminology does not affect the calculation of this
indicator.
Adjusted EBITDA reflects the profitability of the Group before
Interest, Tax, Depreciation and Amortisation. It is a frequently
used indicator in the Fixed Satellite Services Sector and more
generally the Telecom industry. The table below shows the
calculation of Adjusted EBITDA based on the consolidated P&L
accounts for H1 2022-23 and H1 2023-24:
Six months ended December 31
(€ millions)
2022
20231
Operating income
151.2
(134.4)
+ Depreciation and
Amortisation
233.8
316.1
- Other operating income and
expenses
34.0
183.9
Adjusted EBITDA
419.0
365.6
The Adjusted EBITDA margin is the ratio of Adjusted EBITDA to
revenues. It is calculated as follows:
Six months ended December 31
(€ millions)
2022
20231
Adjusted EBITDA
419.0
365.6
Revenues
573.8
572.6
Adjusted EBITDA margin (as a %
of revenues)
73.0
63.8
At constant currency, the adjusted EBITDA margin stood at 64.1%
as of 31 December 2023.
The Net debt / adjusted EBITDA ratio is the ratio of net debt to
last-twelve months adjusted EBITDA. It is calculated as
follows:
Six months ended December 31 (€
millions)
2022
20231
Last twelve months adjusted
EBITDA
844.9
634.2
Closing net debt14
2,996.0
2,619.1
Net debt / adjusted
EBITDA
3.55x
4.13x
Cash Capex
The Group on occasion operates capacity within the framework of
leases, or finances all or part of certain satellite programs under
export credit agreements or through other bank facilities, leading
to outflows which are not reflected in the item “acquisition of
satellites and other tangible or intangible assets”. Cash Capex
including the outflows related to these elements is published in
order to reflect the totality of Capital Expenditures undertaken in
any financial year.
In addition, in the event of a partial or total loss of
satellite, as previously reported cash Capex included investment in
assets which are inoperable or partially inoperable, the amount of
insurance proceeds is deducted from Cash Capex.
Cash Capex therefore covers the acquisition of satellites and
other tangible or intangible assets, payments in respect of export
credit facilities or other bank facilities financing investments as
well as payments related to lease liabilities. If applicable it is
net from the amount of insurance proceeds.
The table below shows the calculation of Cash Capex for H1
2022-23 and H1 2023-24:
Six months ended December 31
(€ millions)
2022
20231
Acquisitions of satellites, other
property and equipment and intangible assets
(166.5)
(139.8)
Insurance proceeds
-
-
Repayments of ECA loans, lease
liabilities and other bank facilities 15
(27.8)
(84.1)
Cash Capex
(194.3)
(223.9)
_____________________ 1 Including OneWeb participation from
October 1st, 2023 2 Unaudited change at constant currency and
constant perimeter. The variation is calculated as follows: i) H1
2023-24 USD revenues are converted at H1 2022-23 rates; ii) the
contribution of the BigBlu retail broadband operations from 1st
July 2022 to 30 December 2022 is excluded from H1 2022-23 revenues
iii) H1 2022-23 and H1 2023-24 revenues are restated to include the
contribution of OneWeb as if the operation had been completed from
July 1st, 2022; iv) Hedging revenues are excluded. 3 The share of
each application as a percentage of total revenues is calculated
excluding “Other Revenues”. 4 Unaudited change at constant currency
and constant perimeter. The variation is calculated as follows: i)
H1 2023-24 USD revenues are converted at H1 2022-23 rates; ii) the
contribution of the BigBlu retail broadband operations from 1st
July 2022 to 30 December 2022 is excluded from H1 2022-23 revenues
iii) H1 2022-23 and H1 2023-24 revenues are restated to take into
account the contribution of OneWeb as if the operation had been
completed from July 1st 2022; iv) Hedging revenues are excluded. 5
Converted into Euros and excluding intercompany agreements. 6
annual expected run-rate in pre-tax cost synergies of over €80m by
Year 5 of the merger. 7 Based on nominal deployment plan for the
GEO fleet and LEO constellation; excluding uncommitted projects. 8
Pro-forma figures with 12 months’ OW figures (actual consolidation
as of 1st October 2023). 9 Includes the impact of the fair value
adjustment of OneWeb investment for €78m. 10 Includes a credit
facility drawdown of €155.0m and cash from OneWeb for €138.2m. 11
Includes the redemption of the Eutelsat SA and OneWeb Holding Ltd
facilities in July and November 2023 for €65.1m and €93.0m
respectively. 12 Include earn-out payments for €26m. 13 Include the
proceeds from the release of the C band for an after-tax amount of
€330m. 14 Net debt includes all bank debt, bonds and all
liabilities from lease agreements and structured debt as well as
Forex portion of the cross-currency swap, less cash and cash
equivalents (net of bank overdraft). Net Debt calculation will be
available in the Note 6.4.3 of the appendices to the financial
accounts. 15 Included in lines “Repayment of borrowings” and of
“Repayment of lease liabilities” of cash-flow statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240215413117/en/
Media enquiries
Joanna Darlington Tel. +33 674 521 531
jdarlington@eutelsat.com
Anita Baltagi Tel. +33 643 930 178 abaltagi@eutelsat.com
Katie Dowd Tel. +1 202 271 2209 kdowd@oneweb.net
Investors
Joanna Darlington Tel. +33 674 521 531
jdarlington@eutelsat.com
Hugo Laurens-Berge Tel. +33 670 80 95 58
hlaurensberge@eutelsat.com
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