Regulatory News:
Eutelsat's (ISIN: FR0010221234 Euronext Paris London Stock Exchange: ETL) (the "Company") Board of Directors today approved the launch of a €828 million equity raise by way of reserved capital increase at a price per share of €4.00, to be subscribed by the French State1, Bharti Space Limited, His Majesty's Government2, CMA CGM Participations, and Le Fonds Stratégique de Participations ("FSP") (the "Reserved Capital Increase"), in accordance with the Extraordinary Resolutions voted at the General Shareholders' Meeting held on 30September 2025.
The French State will subscribe for €551 million, Bharti Space Limited for €30 million, the UK Government for €90 million, CMA CGM Participations for €100 million, and FSP for €57 million.
Following this Reserved Capital Increase, the French State would hold a stake of 29.65% of the capital and voting rights of the Company, while Bharti Space Limited, UK Government, CMA CGM Participations and FSP would respectively hold 17.88%, 10.89%, 7.46% and 4.99% of the share capital and voting rights of the Company.
The settlement of the Reserved Capital Increase is expected in the next few days.
Following the completion of the Reserved Capital Increase, Jean-Baptiste Massignon and Jérémie Gué, appointed by the General Shareholders' Meeting of 30 September 2025, will take up their positions within the Board of Directors as directors appointed by the French State. The Board of Directors will subsequently be composed of 12 members.
Rights Issue
As announced on 19 June 2025 and 10 July 2025, a further €672 million equity raise will be undertaken by way of a rights issue (the "Rights Issue"), for which the investors in the Reserved Capital Increase have committed to take up their full rights. In aggregate, Eutelsat has therefore received irrevocable commitment subscriptions representing in excess of 70% of the contemplated Rights Issue.
As previously communicated, subject to market conditions and approval by the AMF of the related Prospectus, Eutelsat intends to execute the contemplated Rights Issue by 2025 year-end.
Part of a comprehensive financing strategy
These two capital increases, forming part of a comprehensive financing strategy alongside a dedicated debt refinancing plan, are aimed at enhancing the Company's financial flexibility and supporting investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation, while accelerating deleveraging towards its medium-term target of 3x Net debt to EBITDA.
Following the Capital Increases and the disposal of the passive ground segment, expected in H2 FY 2025-26, Eutelsat anticipates a Net Debt Adjusted EBITDA ratio of c.2.5x3 at year-end FY 2025-26. As result, the Company should be well placed to tap Debt Capital Markets and raise Export Credit Financing in order to fully cover the financing needs of its medium-term plan.
Financial outlook4
Eutelsat confirms its objectives for FY 2025-265, targeting revenues in line with, and an adjusted EBITDA margin slightly below, those of FY 2024-25. LEO revenues are expected to grow by 50% year-on-year.
Gross capital expenditure in FY 2025-26 is expected in a range of €1.0 to 1.1 billion.
Eutelsat's longer-term objectives are also confirmed: Revenues of the four operating verticals between €1.5 and 1.7 billion6 by the end of FY 2028-29, with LEO revenues significantly outperforming the market. Operating leverage driving a mid-to-high single-digit percentage point improvement in the EBITDA margin7, resulting in a margin of at least 60% by FY 2028-29. In the longer term (post FY 2028-29), the B2B connectivity market is expected to pursue its growth at a double-digit rate, mostly driven by LEO market expansion.
About Eutelsat
Eutelsat is a global leader in satellite communications, delivering connectivity and broadcast services worldwide. Eutelsat was formed through the combination of the Company and OneWeb in 2023, becoming the first fully integrated GEO-LEO satellite operator with a fleet of 34 Geostationary (GEO) satellites and a Low Earth Orbit (LEO) constellation of more than 600 satellites. Eutelsat addresses the needs of customers in four key verticals of Video, where it distributes around 6,400 television channels, and the high-growth connectivity markets of Mobile Connectivity, Fixed Connectivity, and Government Services. Eutelsat's unique suite of in-orbit assets and ground infrastructure enables it to deliver integrated solutions to meet the needs of global customers. The Company is headquartered in Paris and Eutelsat employs more than 1,600 people across more than 75 countries. Eutelsat is committed to delivering safe, resilient, and environmentally sustainable connectivity to help bridge the digital divide. The Company is listed on the Euronext Paris Stock Exchange (ticker: ETL) and the London Stock Exchange (ticker: ETL).
Find out more at www.eutelsat.com
DISCLAIMER
The forward-looking statements included herein are for illustrative purposes only and are based on management's views and assumptions as of the date of this press release. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to: risks related to the health crisis; operational risks related to satellite failures or impaired satellite performance, or failure to roll out the deployment plan as planned and within the expected timeframe; risks related to the trend in the satellite telecommunications market resulting from increased competition or technological changes affecting the market; risks related to the international dimension of the Group's customers and activities; risks related to the adoption of international rules on frequency coordination and financial risks related, inter alia, to the financial guarantee granted to the Intergovernmental Organization's closed pension fund, and foreign exchange risk. Eutelsat Communications expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this press release to reflect any change in events, conditions, assumptions, or circumstances on which any such statements are based, unless so required by applicable regulation. The information contained in this press release is not based on historical fact and should not be construed as a guarantee that the facts or data mentioned will occur. This information is based on data, assumptions and estimates that the Group considers as reasonable.
No communication and no information in respect of this transaction may be distributed to the public in any jurisdiction where a registration or approval is required. No steps have been or will be taken in any jurisdiction (other than France and the United Kingdom) where such steps would be required. The issue, the subscription for or the purchase of Eutelsat Communications' securities may be subject to specific legal or regulatory restrictions in certain jurisdictions. Eutelsat Communications assumes no responsibility for any violation of any such restrictions by any person.
This press release is not and should not be construed as a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017, as amended (the "Prospectus Regulation") or Prospectus Regulation as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (the "UK Prospectus Regulation
In accordance with the Prospectus Regulation and the UK Prospectus Regulation, the Company will make available: (a) a French voluntary prospectus relating to the rights issue prepared in accordance with the Prospectus Regulation that will be submitted for the approval of the French financial markets authority (Autorité des marchés financiers) in connection with the public offering in France and the admission on Euronext Paris of the new shares issued in the rights issue, (b) an information document prepared in accordance with Annex IX of the Prospectus Regulation and to be made available pursuant to Article 1(5)(bbis) of the Prospectus Regulation relating to the admission on Euronext Paris of the new shares issued in connection with the reserved capital increases, and (c) a prospectus prepared in accordance with the Prospectus Regulation Rules of the Financial Conduct Authority ("FCA") made under section 73(A) of the Financial Services and Markets Act 2000 and to be approved by the FCA, in respect of the applications for the new shares to be issued in connection with the reserved capital increases and the rights issue to be admitted to the equity shares (international commercial companies secondary listing) segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities.
With respect to the member States of the European Economic Area other than France (the "Member States"), no action has been undertaken or will be undertaken to make an offer to the public of securities requiring the publication of a prospectus in any Member States. As a result, any securities of Eutelsat Communications may only be offered in Member States (i) to qualified investors, as defined by the Prospectus Regulation; (ii) to fewer than 150 natural or legal persons per Member State, other than qualified investors (as defined in the Prospectus Regulation); or (iii) in any other circumstances, not requiring Eutelsat Communications to publish a prospectus as provided under Article 1(4) of the Prospectus Regulation; and provided that none of the offers mentioned in paragraphs (i) to (iii) above requires the publication of a prospectus by Eutelsat Communications pursuant to Article 3 of the Prospectus Regulation, or a supplement to the Prospectus Regulation pursuant to Article 23 of the Prospectus Regulation.
With respect to the United Kingdom, no action has been undertaken or will be undertaken to make an offer to the public of securities requiring the publication of a prospectus in the United Kingdom. As a result, any securities of Eutelsat Communications may only be offered in the United Kingdom (i) to qualified investors, as defined under Article 2 of the UK Prospectus Regulation; (ii) to fewer than 150 natural or legal persons, other than qualified investors (as defined in the UK Prospectus Regulation); or (iii) in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000 (the "FSMA"), provided that no such offer shall require Eutelsat Communications to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.
This press release and any other materials in relation to the securities of Eutelsat Communications have not been made, and have not been approved, by an "authorised person" within the meaning of section 21(1) of the Financial Services and Markets Act 2000. As a consequence, this press release is directed only at persons who (i) are located outside the United Kingdom, (ii) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order"), or (iii) are high net worth body corporates, unincorporated associations or partnerships, trustees of a high value trust and other persons to whom it may be lawfully communicated within Article 49(2)(a) to (e) of the Order (all such persons mentioned in paragraphs (i), (ii) and (iii) collectively being referred to as "Relevant Persons"). Any securities are intended only for Relevant Persons and no invitation, offer or agreements to subscribe, purchase or acquire the securities may be proposed or made other than with Relevant Persons. Any person other than a Relevant Person may not act or rely on this press release or any provision thereof. This press release is not a prospectus which has been approved by the FCA or any other United Kingdom regulatory authority within the meaning of Section 85 of the FSMA.
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States of America, its territories and possessions, any State of the United State of America and the District of Columbia (the "United States"). Securities may not be offered, subscribed or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities in respect thereof have not been and will not be registered under the U.S. Securities Act and Eutelsat Communications does not intend to make a public offer of its securities in the United States.
The distribution of this press release in certain countries may constitute a breach of applicable law.
The information contained in this press release does not constitute an offer of securities for sale in the United States, Canada, Australia, Japan or South Africa.
1 The French Government to invest via Agence des Participations de l'Etat ("APE") vehicle (the "French State").
2 Via The Secretary of State for Science, Innovation and Technology ("UK Government").
3 After impact from passive ground segment partial disposal of €0.5bn.
4 Financial objectives assume: (i) no additional impact on revenues due to sanctions imposed on channels broadcast on the group's fleet (ii) the nominal launch and entry into operation of satellites in course of construction in accordance with the timetable envisaged by the Group; (iii) no incidents affecting any of the satellites in-orbit.
5 Before impact from passive ground segment partial disposal.
6 Data at EUR/USD rate of 1.12x and after impact from passive ground segment partial disposal.
7 Including an estimated annualized adjusted EBITDA impact of €(75-80)m due to passive ground segment disposal.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251118386338/en/
Contacts:
Media enquiries
Joanna Darlington
Tel.: +33 6 74 52 15 31
joanna.darlington@eutelsat.net
Anita Baltagi
Tel.: +33 6 43 93 01 78
anita.baltagi@eutelsat.net
Katie Dowd
Tel.: +1 202 2712 209
katie.dowd@eutelsat.net
Investors
Joanna Darlington
Tel.: +33 6 74 52 15 31
joanna.darlington@eutelsat.net
Hugo Laurens-Berge
Tel. +33 670 80 95 58
hugo.laurens-berge@eutelsat.net
