In this Report: M&A Stock Performance, Peer Group Valuations, and Company Profiles on: Eutelsat OneWeb, Iridium, JSAT, KVH, Hughes, SES, Telesat, and Viasat.
Industrywide revenue fell 3% y/y to $3.1B and slipped a further 2% q/q— a steeper decline than last quarter's broadly-flat read. Backlog and coverage held steady at roughly $17B and ~1.5x annualized revenue.
Government (+7%) remained the standout based on broad-based strength (Eutelsat +39%, Viasat +10%). Mobility (-3%) swung negative for the first time in over a year, as SES’s mobility (-23%) revenue tumbled. The legacy base kept eroding: Video and Consumer fell 10% and 23%, respectively.
Spectrum remains a front-burner topic, with the EU announcing terms for its pending 2 GHz auction and the FCC announced upper C-band incentive payments with SES the biggest winner ($5.6B).
Satcom was the best performing space sector in Q2 (up 27%), led by Iridium and Viasat (both up ~2x), with Swedish military specialist, Ovzon, bringing up the rear (-20%).
Five M&A deals closed in Q2, the most in more than four years, including both Big LEO players (Globalstar and Iridium). There were no notable equity finance raises in the quarter.
