Eutelsat Revenue Rises Amid Europe’s Starlink Push * Science and Technology Times

Eutelsat reported stronger‑than‑expected revenue as France accelerates efforts to build a European alternative to Starlink.
The satellite operator is shifting its focus toward internet services while reducing debt and narrowing losses.
Its OneWeb division is becoming increasingly central to this strategy, supported by state funding and growing demand for low‑Earth‑orbit connectivity.

Revenue Strengthens as Eutelsat Repositions

Eutelsat posted first‑half revenue of 592 million euros, surpassing analyst expectations of 581 million euros. The company remains loss‑making, but operating losses fell by 85%, reflecting early progress in its strategic shift. Net debt was reduced by more than half after France, now the firm’s largest shareholder, led a 1.5 billion euro rescue package last year. This intervention stabilized a balance sheet weakened by declining video services and rising borrowing costs.

The French government views Eutelsat as Europe’s most viable challenger to Starlink. Its ownership of OneWeb, the only other active low‑Earth‑orbit (LEO) satellite network, gives the company a unique position in the region. These satellites, integrated into Eutelsat through a 2023 merger, are used by governments and militaries, making them strategically important. The shift toward LEO connectivity is beginning to show results despite ongoing cost pressures.

OneWeb’s revenue grew nearly 60% and now accounts for roughly one‑fifth of Eutelsat’s total sales. This growth helped offset the continued decline of the company’s legacy broadcasting business. Eutelsat plans to replace ageing OneWeb satellites and has secured a state‑backed loan of 1 billion euros to purchase 340 new Airbus spacecraft. The investment underscores the long‑term importance of LEO infrastructure to the company’s future.

Eutelsat is also exploring new services, including satellite‑to‑smartphone connectivity, often referred to as direct‑to‑device. CEO Jean‑François Fallacher said the company is evaluating potential projects in this area. Such services could expand Eutelsat’s reach into consumer markets and emergency communications. The company’s broader strategy reflects a shift toward internet‑focused offerings rather than traditional broadcast operations.

France Positions Eutelsat as Europe’s Starlink Rival

France’s backing is central to Eutelsat’s transformation. The government sees the company as a strategic asset capable of supporting Europe’s digital sovereignty. OneWeb’s LEO network is considered essential for secure communications, particularly for defense and government use. The French state’s financial support has enabled Eutelsat to stabilize operations and invest in next‑generation infrastructure.

The company’s LEO capabilities are becoming increasingly relevant as global demand for satellite internet grows. Starlink’s rapid expansion has raised concerns in Europe about reliance on non‑European providers. Eutelsat’s strengthened position offers an alternative that aligns with regional security and industrial policy goals. The company’s progress suggests that Europe’s efforts to build its own satellite ecosystem are gaining momentum.

Eutelsat’s leadership has also been asked to explore humanitarian applications. Fallacher confirmed that France’s foreign ministry requested an assessment of sending terminals to Iran after authorities imposed an internet blackout. He said the company would support the Iranian population as much as possible within regulatory constraints. This highlights the geopolitical dimension of satellite connectivity and its role in maintaining access to information.

The company is also optimizing its capital spending. Eutelsat cancelled a satellite order from Thales Alenia Space, saving more than 100 million euros. The decision reflects a broader effort to streamline operations and prioritize investments in LEO infrastructure. These measures contribute to the company’s improved financial outlook.

Debt Reduction and Market Confidence Boost Outlook

Eutelsat plans to proceed with refinancing its bonds following last year’s capital injection. The cash call prompted upgrades from credit rating agencies, improving the company’s financial standing. Stronger revenue and reduced debt have helped restore investor confidence. Shares rose 6.6% by mid‑morning trading, bringing year‑to‑date gains to around 33%.

The company’s pivot toward internet services marks a significant strategic shift. Traditional broadcasting continues to decline, making diversification essential for long‑term stability. OneWeb’s performance suggests that LEO connectivity could become a major growth driver. Continued state support provides a buffer as the company navigates high costs and competitive pressures.

Eutelsat’s future will depend on its ability to scale its LEO network and deliver reliable services. Replacing ageing satellites is a costly but necessary step to maintain competitiveness. The company’s exploration of direct‑to‑device services indicates a willingness to innovate. These initiatives could position Eutelsat as a key player in the next phase of global satellite communications.

The broader European satellite sector may also benefit from Eutelsat’s progress. A stronger regional competitor to Starlink could encourage further investment and collaboration. The company’s trajectory will likely influence Europe’s digital infrastructure strategy in the coming years. Its performance in the LEO market will be closely watched by industry observers.