Eutelsat says OneWeb LEO enterprise delayed on account of floor community delays


In an investor replace, French satellite tv for pc firm Eutelsat stated that its Low Earth Orbit (LEO) community by way of OneWeb is “progressing nicely” however extra slowly than anticipated, and that it nonetheless gained’t meet near-term monetary expectations.

OneWeb has 100% of the anticipated satellites in place and an order backlog of $1.1 billion as of the top of the final quarter, Eutelsat stated, however remains to be “operating delayed relative to the unique roadmap”. The corporate had initially anticipated that it will have the ability to present international protection by early 2024, however it’s seeing delays within the availability of the accompanying floor community, which is impacting revenues and market entry in some geographies.

Eutelsat expects the accompanying floor community to maneuver in the direction of a 90% completion charge within the second quarter of this yr, and to attain international protection within the later a part of this yr. “We proceed to see robust momentum within the take-up of pre-signed commitments with main clients, and we consider we’re on observe in the direction of our longer-term targets,” the corporate added.

“We stay very assured within the industrial buyer curiosity within the capability,” stated CEO Eva Berneke in a name with traders.

Eutelsat adjusted its anticipated revenues downward for the full-year of 2024 to compensate for the present dynamic wherein OneWeb is working, and it stated that beforehand communicated aims for 2025 have been suspended. It plans to share one other public replace when it provides its full-year leads to August 2024. The corporate will share first-half outcomes on Feb. 16.

“Administration stays assured within the prospects of OneWeb and the potential of Eutelsat Group’s distinctive mixed GEO-LEO supply,” Eutelsat added.

Eutelsat additionally introduced that it had accomplished the sale of OneWeb’s 50% stake in a three way partnership with Airbus. Airbus purchased out the stake in Airbus OneWeb Satellites, which is predicated in Florida and constructed the satellites for OneWeb’s first-generation satellite tv for pc constellation. Eutelsat stated that the transfer was a part of optimization and monetizing its portfolio and decreasing its debt.

The settlement displays Eutelsat Group’s ongoing administration of its belongings with a view to optimizing and monetizing its portfolio as a part of its debt discount efforts.


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