EUTELSAT Communications, one of the world’s leading operators in the commercial satellite business, reported that it generated €47.7 million in revenue from its business operations in Africa as posted in its first half (H1) 2021-2022 results.

According to the report for the six months ended December 2021, Eutelsat’s total revenue declined by 9 per cent year-on-year (YoY) to €572.2 million, compared to €628.5 million recorded in the previous year.

The company’s EBITDA margin – a performance metric that measures its operating profit as a percentage of its revenue – remained strong at 76.1 per cent, indicating that Eutelsat operates more efficiently and maximises its profitability despite a 9 per cent year-on-year (YoY) decline in revenue.

According to the H1 result posted on February 17, 2022,  Eva Berneke, Chief Executive Officer of Eutelsat Communications, remarked that it had been a decent first half for the company in financial terms. Despite posing a decline in revenue, Eutelsat recorded strong free cash flow generation and an industry-leading EBITDA margin—an attestation to the company’s fundamentally robust business model and stringent financial discipline.

The H1 2021-2022 results showed that Eutelsat’s total revenue across all geographical markets declined, including a slight 0.4 per cent revenue decrease in Africa from €47.9 million reported in the same period last year.

The company 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. 

Further, Eutelsat also signed a contract with Intersat for the entire capacity covering two West Africa countries— 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.

Eutelsat plans to launch EUTELSAT 36D in Africa, a planned new generation multi-mission geostationary telecommunications satellite ordered from Airbus.

Commenting on the general performance of the company in H1, Berneke said, “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”.

“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,” she added.