Eutelsat Adjusts FY 2023-24 Objectives Post OneWeb Merger: LEO Activities Behind Schedule
After the successful merger with OneWeb forming Eutelsat Group, the company has conducted a thorough review of its trading performance for the first three months post-merger. The legacy Eutelsat business is on track for expected performance, anticipating a return to top-line growth for FY 2023-24. However, results from OneWeb’s Low Earth Orbit (LEO) activities are running behind the original roadmap due to ground network availability delays and a revenue mix skewed towards user terminal sales impacting margins.
While the ground network deployment is progressing towards a 90% completion rate in Q2 2024, this dynamic won’t close the gap to near-term expectations. Consequently, financial objectives for FY 2023-24 are adjusted:
- Revenues: €1.25bn to €1.3bn (previously €1.32bn to €1.42bn)
- Adjusted EBITDA: €650m to €680m (previously €725m to €825m)
- Cash capex for FY 2024: €600m to €650m
Post-synergies, cash capex will average between €725m and €875m per annum over FY 2025 to FY 2030. Leverage target remains around 3x in the medium term. Financial objectives for FY 2024-25 will be reviewed and shared on August 2nd, 2024, considering the rapid development of OneWeb’s business.
Management expresses confidence in OneWeb’s prospects and the combined GEO-LEO offer, anticipating revenue acceleration and targeting double-digit CAGR in revenues and Adjusted EBITDA between FY 2024 and FY 2028.
