Revenues slip but Eutelsat claims objectives achieved in fiscal year
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Editor
| 31 July 2023
Over the last few years the satellite industry has seen its major players make a strategic refocus on data and connectivity and away from video and this trend has been further shown has been seen in the 2022 2023 financial year report for operator Eutelsat.
Eutelsat Russia 23Dec2022
For the year ended 30 June 2023, the company reported total revenues of €1.131 billion, down 1.8&% on an annual basis with operating verticals’ revenues falling 1.1% to €1.136 billion on a reported basis and €1.093 billion at constant currency.

The year saw the successful entry into service of three satellites: HOTBIRD 13F and HOTBIRD 13G assuring service continuity at the flagship 13° East video hotspot, with HOTBIRD 13G hosting an incremental EGNOS GEO-4 payload.; EUTELSAT E10B, with incremental 35 Gbps of HTS Ku-band capacity addressing demand in Mobile Connectivity, with firm pre-commitments from Intelsat and Panasonic; also ensuring service continuity for customers of EUTELSAT 10A.

However, the company’s video line, representing 62% of revenues, saw continued falls in business. FY 2022-23 video revenues were down by 8.3% to €705 million, reflecting said Eutelsat the impact of the early nonrenewal 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 Russian and Iranian channels, mainly in the second half of the year.

Bright spots on the commercial front included Eutelsat being selected by Orby Elevate for the distribution of its first mainstream English language direct-to-home (DTH) services in the US, leveraging the unparalleled coverage of EUTELSAT WEST 117 West A over the US territory. Eutelsat also extended its partnership with Emirates telco du to upgrade its DTH services across the Middle East and North Africa.

Professional video revenues, which account for around 10% of the Video vertical, also decreased, reflecting structural headwinds as well as the seasonality of some events.

Commenting on the full-year results, Eutelsat Communications chief executive officer Eva Berneke said: “Fiscal Year 2022-23 has been a very solid year for Eutelsat, with revenues at the top end of our range of expectations, a high level of profitability and robust free cash flow generation. From a commercial point of view we have seen strong momentum in our connectivity verticals, confirming our strategy of shifting our business model to address these new applications.”