Eutelsat estaimated the negative impact of program suspensions in Russia and Iran to cost its full-year revenues 10 to 15 million euros ($16 million). The company's halting of broadcasting activities related to Iran came in reaction to a European Union regulation this month. "Eutelsat has also ensured that it is not involved in the broadcasting of RT News in Russia," it added.
Made effective Wednesday, 21 December 2022, Eutelsat has enforced the requirements to stop carrying three Russian programs, as well as ending all broadcasting activities in Iran, will cost the company's EBITDA operating profit 15-20 million euros ($15.96 -21.28 million) and reduce available cash flow by around 10 million euros.The company has also ended the broadcast of three Russian channels, Rossiya One, Pervyi Kanal and NTV, following the advice of France's Arcom television. The company will implement all restrictive measures on broadcasting activities adopted by the competent French and European Union regulatory bodies.
Effective 14 December 2022, Eutelsatalso ended all involvement in the broadcast of three channels, Rossiya One, Pervyi Kanal and NTV, within the prescribed 7-day compliance period. Pursuant to the Council of the European Union (EU) Regulation 2022/2474 of 16 December 2022, these three channels as well as a fourth, RenTV, will be subject to sanctions if so confirmed by the Council by 1 February 2023, in accordance with the notice 2022/C 481 I/04 released by the Council on 19 December 2022. Eutelsat has also withdrawn its involvement with RT News in Russia.
The company projected the suspensions to have a negative combined impact of 10 and 15 million euros on Group Revenues, and of between 15 and 20 million euros on EBITDA, considering all collection costs. The estimated impact on the Group’s Adjusted Discretionary Free Cash Flow for FY 2022-2023 is c. 10 million euros. The Group’s objective for revenues from the five Operating Verticals for FY 2022-23 is mechanically adjusted to take account of these impacts and is now expected between 1,135-1,165 million euros (based on a EUR/USD rate of 1.00). The objective of Adjusted Discretionary Free Cash Flow expected at an average of 420 million euros per year for FY 2022-23 and FY 2023-24.
