Satellite operator Eutelsat posted revenues of EUR 323.1 million across its operating verticals for the March quarter (fiscal Q3 2019-2020), down 1.6 percent year-on-year at constant currency and perimeter (-3.7% in fiscal Q2). The revenue drop was 4.4 percent on a reported basis when including the 'Other revenue' line. The company said that the quarter was in line in expectations, and highlighted the resilient revenue performance of its core Broadcast business (-0.2% like-for-like). The revised full-year guidance published in April has been confirmed, with an estimated revenue impact of EUR 20 million from the Covid-19 crisis.
Eutelsat's Broadcast vertical generated EUR 198.8 million, or 61.5 percent of underlying revenues (61.0% in the year-earlier period). The Data & Professional Video business faced ongoing pricing pressure, as revenues fell 7.6 percent to EUR 44.8 million. Government Services and Fixed Broadband also reported negative revenue growth on a like-for-like basis (-2.4% and -2.6% respectively), while the trend remained positive for Mobile Connectivity, with revenues up 2.0 percent to EUR 20.8 million.
Mobility services are expected to be particularly affected by the Covid-19 lockdown in the current quarter, because of the drop in airline and maritime traffic, alongside 'Occasional Use' services within the Professional Video segment, due to the cancellation of sport events.
Commenting on the C-Band clearing process, Eutelsat said that it is confident in its ability to clear the spectrum by the prescribed deadline. The operator is eligible to receive USD 507 million from the USD 9.7 billion incentive package allocated to clear the band rapidly.
