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Eutelsat Communications has announced a 2.4% decrease in operating vertical revenues for the first quarter of its 2023-24 fiscal year compared to the same period last year. Despite this, the company reported that its Konnect VHTS satellite, which was launched over a year ago, has now entered service. The satellite will provide fixed, mobile, and government connectivity across Europe, North Africa, and the Middle East. With a Ka-band capacity of 500 Gbps, it is the largest GEO satellite in Europe to date. Eutelsat has secured firm commitments totaling €450 million (4 million) for the satellite.

During the quarter, Eutelsat’s video revenue decreased by 9.5% year-over-year. Government services revenue remained flat, while fixed connectivity experienced a slight dip of 2.6% year-over-year. However, Eutelsat expects double-digit growth for the fixed connectivity segment in the fiscal year. On the other hand, mobile connectivity saw standout growth, with revenues of €35 million ( million), representing a 44% increase year-over-year. This growth was driven by the commercialization of the final beam of the Quantum satellite for a maritime mobility client and the entry into service of the 10B satellite, for which Eutelsat secured a deal with Marlink for capacity.

Looking ahead, Eutelsat anticipates double-digit growth for its mobile connectivity segment in the full year, fueled by strong demand for both GEO and LEO connectivity solutions following the acquisition of OneWeb. Eutelsat’s backlog stands at €3.4 billion (.6 billion) as of September, remaining steady compared to the end of June. However, video revenue accounts for a decreasing portion of the backlog, now representing 57% compared to 63% a year ago.

Eutelsat’s CFO, Christophe Caudrelier, revealed that OneWeb’s constellation is already generating revenues across various verticals and is on track to achieve global coverage by the end of the year. He also stated that the first generation of OneWeb satellites is expected to last until at least 2027, with the second generation planned for launch by that year. However, Eutelsat has not yet announced a manufacturer for the second generation.

With the addition of OneWeb, Eutelsat aims to achieve its new financial objectives, which include double-digit revenue growth over the medium to long-term, reaching €1.32 billion to €1.42 billion in fiscal year 2024, and €2 billion in fiscal year 2027.

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