Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Is the increased vigilance on GEO driven by cannibalization from LEO, and can LEO offset the GEO decline? Also, what is the expected GEO CapEx alongside the LEO extension? A: The vigilance on GEO is due to headwinds in B2C connectivity, particularly from Starlink. While B2C is not Eutelsat's main focus, there is a shift towards LEO in connectivity. The LEO extension is expected to cost EUR2.2 billion over four years, and GEO CapEx will be carefully managed, with partnerships being explored to mitigate costs. (Eva Berneke, CEO)
Q: What are the lease costs for the ground terminal proceeds, and how will the EUR500 million cash proceeds be used? A: The annual cost is estimated at EUR70 million to EUR80 million, mostly OpEx rather than lease costs. The EUR500 million cash proceeds will strengthen financial resources and contribute to the LEO constellation extension. (Christophe Caudrelier, CFO)
Q: How much of the EUR2 billion to EUR2.2 billion Gen 1 continuity CapEx will be financed with ECA? A: The expectation is to finance two-thirds to four-fifths of the Gen 1 continuity CapEx with ECA financing. (Eva Berneke, CEO)
Q: Can you clarify the timeline for IRIS2 CapEx and the expected revenue from OneWeb? A: IRIS2 CapEx will start in '28, with major spending in '29 and '30. The EUR6.5 billion revenue is expected from IRIS2 over the concession period. OneWeb revenues are ramping up well, contributing to the full-year guidance. (Eva Berneke, CEO)
Q: What is the strategy for competing with larger US competitors in the LEO market? A: Eutelsat's LEO satellites fly higher, requiring fewer satellites for global coverage. The focus is on a B2B strategy, offering an alternative to Starlink, with significant interest from customers seeking non-US options for resilience and geopolitical reasons. (Eva Berneke, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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