Eutelsat Faces Revenue Dip Amid Declining Video Segment

Eutelsat reported a revenue decline of 1.2% in the first quarter due to a drop in its video business, despite high demand for government services, especially in Ukraine. The video segment, usually a key revenue driver, saw a 10.5% decline. Sanctions on Russian channels impacted revenues.

French satellite operator Eutelsat announced a disappointing revenue performance for the first quarter, as video sales declined, negatively affecting the overall figures. The company reported a 1.2% drop in revenue year-on-year, with sales reaching 283 million euros, falling short of analyst predictions of 295 million euros.

The video segment, which makes up approximately half of Eutelsat's earnings, experienced a significant 10.5% drop in revenue. This downturn is attributed to sustained decline in the video market and sanctions against Russian channels, the company explained.

Despite these challenges, Eutelsat saw a positive 18.5% increase in government services revenue, boosted by demand in Ukraine. Looking to the future, Eutelsat remains committed to its financial targets while managing the impact of international sanctions and evolving market dynamics.

(With inputs from agencies.)