• Satellite Evolution Group

Eutelsat release first half 2020-21 results


The Board of Directors of Eutelsat Communications (ISIN: FR0010221234 - Euronext Paris: ETL), chaired by Dominique D’Hinnin, reviewed the financial results for the half-year ended 31 December 2020.


Commenting on the First Half, Rodolphe Belmer Chief Executive Officer of Eutelsat Communications, said: “Eutelsat has produced a solid First Half performance with Operating Verticals revenues down by 2%, reflecting our resilience in the Covid-19 impacted context, and with an EBITDA margin at 76.7%, despite the costs associated with Broadband ramp-up. Free-cash flow generation at the half year stage already amply covers the dividend paid in November.


The past six months have been dynamic from a commercial point of view with the award of a further EGNOS payload to fly on EUTELSAT HOTBIRD 13G, a major wholesale agreement with Telecom Italia for the Italian capacity on EUTELSAT KONNECT and KONNECT VHTS following a similar agreement with Orange in France, and several renewal and new deals in Sub-Saharan African broadcast.


From an operational point of view, we have made significant headway on our Broadband strategy with the entry into service of EUTELSAT KONNECT and the reorganization of our retail arm, where the integration of Bigblu Broadband is progressing smoothly. In view of this solid start to the year, we are in a position to absorb the negative perimeter effect linked to Broadband transactions and to raise the low end of our FY 21 revenue objective.”


Key Events

  • First Half like-for-like revenues of the Operating Verticals were down -2.1% year-on-year. This solid start of the year enables us to raise the low end of our Full Year revenue objective to between €1,190 million and €1,220 million (versus between €1,180 million and €1,220 million previously). We are also in a position to absorb the net negative perimeter effect linked to Broadband transactions which will affect the second half.

  • Continued relative resilience in the Covid-19 context with stable Operating Vertical revenues in the Second Quarter compared to the First.

  • Sustained profitability, with EBITDA margin at 76.7%, despite revenue decline, and costs associated with Broadband ramp-up including the integration of Bigblu Broadband Europe.

  • High level of Free-Cash-Flow generation with First Half Adjusted Discretionary Free-CashFlow of €275 million, amply covering the Full Year dividend paid in November. FY 2021-22 Adjusted Discretionary Free Cash-Flow objective mechanically adjusted to take into account changes in perimeter.

  • Award of a further EGNOS payload on the EUTELSAT HOTBIRD 13G satellite representing a total contract value of €100m over 15 years.

  • Significant headway in our Fixed Broadband strategy paving the way for return to growth:

  • Reorganization of distribution completed with disposal of our stake in Euro Broadband Infrastructure and closing of the acquisition of Bigblu Broadband Europe, with integration well on track3;

  • Entry into service of EUTELSAT KONNECT satellite and launch of the first retail offers in several European countries;

  • Major wholesale agreement with Telecom Italia for the Italian capacity on KONNECT and KONNECT VHTS following a similar agreement with Orange in France securing the ramp-up of capacity.