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Neom drives Eutelsat’s Q1 fixed connectivity revenues

The company's Q1 fixed connectivity revenues stood at €57m, up 30.1% year-on-year, reflecting the acceleration in its LEO services which were driven by the Neom contract.

Eutelsat Communications has reported its revenues for the First Quarter ended 30 September 2024. The company’s total revenues for the First Quarter stood at €300m, up 9.4% on a reported basis, and by 5.9% like-for-like.

Revenues of the four operating verticals, namely, video, government services, mobile connectivity and fixed connectivity (excluding ‘other revenues’) stood at €297m. They were up 5.5% on a like-for-like basis excluding a negative currency effect of €1m. Quarter-on-quarter, revenues of the four Operating Verticals were down by 11.9% like-for-like.

Fixed connectivity saw the greatest growth in the first quarter, growing revenue 30% year-over-year to €56.5m. Fixed Connectivity made up 19% of company revenue. This growth was driven by OneWeb’s Low-Earth Orbit (LEO) service, particularly from the joint venture with Neom. Growth also included the impact from the entry into service of the Konnect VHTS satellite.

Mobile connectivity also grew, with revenue in this segment touching €42m, up 19% year-over-year. Mobile connectivity accounted for 14% of company revenue. Eutelsat reported growth in LEO-based connectivity solutions, as well as GEO solid performances, particularly in aviation.

Government services grew as well, up 20% year-over-year to €46.4m. This segment made up 16% of revenue. Video still accounts for more than half of the company’s revenue at €152m and 51% of revenue, Although, the 2024 Olympic Games gave the segment a small boost in revenue, the segment continued to decline, down 7% year-over-year during the quarter.