By By Nina Kienle
Eutelsat, the French satellite operator, has recently lowered its outlook for fiscal 2024 and suspended its fiscal 2025 targets due to delays at OneWeb, its U.K. satellite-internet company.
Shares of Eutelsat dropped significantly after the announcement. At 0912 GMT on Monday, shares declined by 16% to EUR3.45. This decrease in value represents a 50% drop in the stock’s price over the past year.
The delays at OneWeb’s low Earth orbit communications network, also known as LEO, have caused setbacks in the availability of the ground network, resulting in a negative impact on revenue. The merger between Eutelsat and OneWeb was finalized in late September.
As a consequence, Eutelsat now expects its revenue for the year ending June 30 to range between 1.25 billion and 1.3 billion euros ($1.36 billion-$1.41 billion). This is lower compared to the previous estimate of EUR1.32 billion to EUR1.42 billion.
Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now projected to range between EUR650 million to EUR680 million, down from the previous range of EUR725 million to EUR825 million.
Despite these setbacks, Eutelsat’s legacy business remains on track.
The company has indicated that it will disclose the outlook for fiscal 2025 on Aug. 2. However, it has suspended its previously-communicated objectives until a more accurate assessment of prospects is carried out.
Looking ahead, Eutelsat aims to achieve a double-digit compound annual growth rate in revenue and adjusted EBITDA between fiscal 2024 and 2028.
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