Eutelsat’s headquarters in Paris. Photo: Eutelsat

Eutelsat Group reported modest revenue growth in the first quarter of its 2024-25 fiscal year, driven by growth in Fixed Connectivity from OneWeb’s deal with Saudi Arabian city Neom. 

Eutelsat reported financials on Oct. 29, reporting revenues for the four operating verticals of 297 million euros ($321 million). This is an increase of 5.5% year-over-year. Eutelsat reports its year-over-year changes on a like-for-like basis, at constant currency and perimeter.

Fixed Connectivity saw the greatest growth in the first quarter, growing revenue 30% year-over-year to 56.5 million euros ($61 million). Fixed Connectivity makes up 19% of company revenue. 

This growth was driven by OneWeb’s Low-Earth Orbit (LEO) service, particularly from the joint venture with the Saudi Arabian city Neom. Growth also included the impact from the entry into service of the Konnect VHTS satellite.

However, this growth did not match the previous quarter — compared to the prior quarter, revenue was down 31%. Eutelsat reported a high level of equipment sales in the prior quarter that accounted for fourth quarter growth. 

Mobile Connectivity also grew, but did not grow at the same rate of previous quarters. Revenue in this segment was 42 million euros ($45 million), up 19% year-over-year. Mobile Connectivity accounts for 14% of company revenue. Eutelsat reported growth in LEO-based connectivity solutions, as well as GEO solid performances, particularly in aviation.

Government Services grew as well, up 20% year-over-year to 46.4 million euros ($50 million). This segment makes up 16% of revenue. 

Video continues to decline, down 7% year-over-year during the quarter. Video still accounts for more than half of the company’s revenue at 152 million euros ($164 million) and 51% of revenue. This segment had a small boost in revenue from the 2024 Olympic games. 

CFO Christophe Caudrelier confirmed in a call with investors on Tuesday that the process is still ongoing to sell Eutelsat’s ground network to private equity firm EQT Infrastructure VI to form a new ground station as a service company. 

Caudrelier said the deal is on track, but will likely not close before early 2026 due to regulatory process. This includes transferring some equipment and carving out the business out of Eutelsat’s business.