Eutelsat’s financial outlook dips as OneWeb’s LEO initiatives face delays

Eutelsat Group ETL.PA on Monday lowered its financial targets for the 2023-2024 financial year as newly merged OneWeb’s LEO activities were “running behind schedule”.

The group, which is the result of French satellite company Eutelsat’s merger with Britain’s OneWeb, said LEO activities reflected “delays in the availability of the ground network”. This impacts the revenue “as well as a revenue mix more oriented than expected towards the sale of user terminals, which impacts margins”.

The company now targets revenue between 1.25 billion euros and 1.30 billion euros ($1.36 billion and $1.41 billion) for the financial year ending June 30, compared with previous forecast of between 1.35 billion euros and 1.42 billion euros.

It sees adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) between 650 million euros and 680 million euros, lower than previous forecast of 725 million euros-825 million euros.

Eutelsat Group said its perspectives for 2024-25 were suspended, and will review them in its full-year report in August. Nasdaq