Eutelsat Communications: First Quarter 2024-25 Revenues Soar on LEO Growth

Eutelsat Communications, a leading global satellite operator, reported strong first quarter revenues for the 2024-25 fiscal year, driven by growth in Low Earth Orbit (LEO) services. The company's revenues for the quarter stood at €300 million, up 9.4% on a reported basis and by 5.9% like-for-like.

The growth in revenues was primarily attributable to the acceleration in LEO services, particularly the NEOM contract, which significantly contributed to the increase in Fixed Connectivity revenues. The entry into service of KONNECT VHTS in Q2 FY24 also played a crucial role in boosting Fixed Connectivity revenues.

Moreover, commercial wins such as the deal with Bayobab, a subsidiary of the MTN Group, and the contract with SoftBank further enhanced the company's revenue growth. The Bayobab deal will leverage the OneWeb LEO constellation to deliver connectivity for enterprises and cellular backhaul across Africa, while the SoftBank contract marks Eutelsat's entry into the Japanese market.

The integration of OneWeb's LEO constellation has significantly impacted Eutelsat's overall revenue and market position. The combination of the two companies, forming the world's first LEO-GEO satellite operator, has created a major step-up in Eutelsat's telecom pivot. The operational roll-out of the OneWeb service, although initially more challenging than anticipated, is now on track to see continued growth in the current fiscal year.

In conclusion, Eutelsat Communications' focus on LEO-enabled solutions has proven to be a strategic move, driving significant revenue growth in the first quarter of the 2024-25 fiscal year. As the company continues to develop its unique LEO-GEO offer, it remains confident in its ability to grow connectivity revenues in LEO while maintaining market share in GEO. This focus on financial robustness and value creation for stakeholders is expected to continue, positioning Eutelsat Communications as a leader in the satellite communications industry.