Connectivity offsets video decline for Eutelsat in Q3

Robust growth in mobile and fixed connectivity and government services helped satellite operator Eutelsat offset an ongoing decline in its video business in its fiscal third quarter, with the company’s top line growing by 8.5% year-on-year to €300.3 million.

The still-core video business declined by 5.4%, or by 4.9% on a like-for-like basis to contribute revenues of €160.2 million out of the total revenue pie of €300.8 million.

Eutelsat said the decline in video was in line with the overall market trend. The company has been hit by the non-renewal of a contract with Digitürk and sanctions imposed on business with Russia.

Eutelsat saw strong growth in mobile connectivity, up 48% like-for-like to €26.9 million, with fixed connectivity up 24.2% to €44 million and government services up 22.1% to €31.4 million.

Eutelsat said it had picked up new video business in emerging markets where demand is partially mitigating the decline in Europe.

They included new business on the Eutelsat 117 West A satellite which was selected by StarTV for the deployment of StarFlix, its new video streaming service, and by Instituto Nacional de Radio y Televisión del Perú which signed a multi-year capacity agreement for large-scale content distribution to homes and IP devices across the country.

Eutelsat also inked new business at its 7/8° West orbital position with Télédiffusion d’Algérie which increased capacity on the Eutelsat 7 West A satellite to consolidate its TV and radio channels on the country’s leading video neighbourhood. Additionally, iKO Media Group is using capacity at the 16° East, 13° East, and 7/8° West orbital positions to bring its new eSports TV package, eCLUTCH, to screens across Europe, the Middle East and Africa.