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Eutelsat posts in-line Q3 sales aided by mobile connectivity growth

Eutelsat, the world’s third-biggest satellite operator by revenue, on Thursday reported third-quarter sales in line with expectations, supported by sustained growth in its fixed broadband and mobile connectivity divisions.

The fixed broadband unit’s like-for-like sales rose 7.3% to 18.5 million euros ($20.4 million), while the mobility division saw growth of 23% to 26.9 million euros compared to a year earlier.

Eutelsat said it expected the positive dynamic in the mobility unit “to translate into double-digit growth for the full-year”, albeit at a slower pace than in the first nine months of the financial year.

In February, the France-based group said it planned to focus on areas such as mobile connectivity, aided by its merger with Britain’s OneWeb. Eutelsat said the deal was on track to close in the third quarter.

The merger with OneWeb, announced last July, aims to lift annual sales to 2 billion euros by 2027, and to combine Eutelsat’s geostationary satellite fleet with OneWeb’s low-earth orbit constellation to offer fast internet services by satellite.

Eutelsat reported a 5.2% fall in quarterly revenue to 272 million euros, roughly in line with analysts’ average estimate of 271 million euros in a company-provided poll.

The group confirmed its financial targets for fiscal 2022/23 and for longer term, including an annual adjusted discretionary free cash flow of 420 million euros.

The company expects its revenue to step up in the second half of 2023, especially in mobility applications, as new inorbit assets enter into service, which should support the return to growth in fiscal 2023/24. US News

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