(Reuters) – Eutelsat on Thursday reported revenue in line with expectations in the third quarter of its staggered fiscal year, with sustained growth in fixed broadband and mobile connectivity.
Revenue from the fixed broadband unit increased by 7.3% to 18.5 million euros, while the mobility division recorded growth of 23% to 26.9 million euros compared to to the previous year.
The satellite operator said it expects the positive momentum in the mobility unit “to translate into double-digit growth over the full year”, albeit at a slower pace than in the first nine months of the fiscal year.
The French group said in February that it planned to focus on areas such as mobile connectivity, thanks to its merger with Britain’s OneWeb. Eutelsat said the transaction is expected to close in the third quarter.
The merger with OneWeb, announced last July, aims to increase annual revenue to €2 billion by 2027 and combine Eutelsat’s fleet of geostationary satellites with OneWeb’s low-orbit constellation to offer high-speed satellite internet services.
Eutelsat published quarterly revenue down 5.2% to 272 million euros, in line with the average analyst estimate of 271 million according to a consensus provided by the company.
The group confirmed its financial targets for the 2022/23 financial year and beyond, including an annual adjusted discretionary free cash flow of 420 million euros.
It expects revenue to accelerate in the second half of 2023, particularly in mobility applications, with the entry into service of new in-orbit assets, which should support a return to growth in fiscal year 2023 /24.ofrbs
(Report Lina Golovnya in Gdansk; Nathan Vifflin)
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