02 March 2022
Eutelsat Communications, the commercial satellite business, generated €47.7m in revenue from its business operations in Africa, according to its first half (H1) 2021-2022 results.
According to the report for the six months ended December 2021, the company’s total revenue declined by 9% year-on-year (YoY) to €572.2m, versus the €628.5m recorded the previous year.
The company’s EBITDA margin was recorded at 76.1% and the H1 2021-2022 results showed that Eutelsat’s total revenue across all geographical markets declined, including a slight 0.4% revenue decrease in Africa from €47.9m reported in the same period last year.
Furthermore, the firm recorded sustained progress in its fixed broadband strategy and growing momentum, particularly in Africa, driven by increased partnership agreements.
Within the period under review, a multi-year, multi-Gbps wholesale capacity contract was secured with Globacom, Nigeria’s second-largest telecom operator, and a service agreement with Vodacom Tanzania, the country’s leading telecommunications company. Eutelsat also signed a contract with Intersat for the entire capacity covering the Gambia and Guinea Bissau.
One of Eutelsat’s critical priorities for FY 2021-2022 is to maximise the cash generation of the heritage businesses, deliver growth in connectivity verticals, and ramp up Konnect Africa operations.
“The first half has seen a number of important commercial and operational milestones, notably with the entry into service of EUTELSAT QUANTUM, strong progress on our Fixed Broadband roll-out, the cementing of our position in OneWeb and the receipt of the first tranche of our C Band proceeds,” said Eva Berneke, chief executive officer of Eutelsat Communications. “Newly at the helm, I am impressed by the technical expertise, asset quality and long-term commercial traction within Eutelsat.
“Although we have mechanically revised down our medium-term revenue expectations on the back of delayed availability of capacity, I am confident we have the elements in place to enable us to return to growth from FY 2023-24 and continue to deliver long-term value to our shareholders.”
Eutelsat plans to launch EUTELSAT 36D in Africa, a planned new generation multi-mission geostationary telecommunications satellite ordered from Airbus.