Eutelsat Starlink Rival Posts Strong Revenue Growth
The Eutelsat Starlink rival reported better-than-expected first-half revenue as France accelerates efforts to build a European competitor to Elon Musk’s satellite network. Revenue reached 592 million euros, surpassing analysts’ forecasts of 581 million euros. Although the company remains loss-making, it reduced operating losses by 85%, signalling early progress in its strategic pivot toward broadband internet services.
The Paris-based satellite operator has been repositioning itself after facing declining income from traditional video broadcasting and higher borrowing costs. Its turnaround has been supported by a 1.5 billion euro rescue led by the French state, now the company’s largest shareholder, which helped stabilise its balance sheet and reduce net debt by more than half.
France Driving Push to Challenge Starlink
France considers the Eutelsat Starlink rival Europe’s most viable alternative to Musk’s constellation because of its ownership of OneWeb, the only other active low Earth orbit (LEO) satellite network. OneWeb became part of the group following a 2023 merger and provides connectivity services to governments and military customers, making it strategically significant.
OneWeb revenue surged nearly 60% in the latest period and accounted for roughly one-fifth of total group sales. That growth partly offset continued declines in legacy broadcasting services.
Expansion Plans and Strategic Investments
To maintain competitiveness, the Eutelsat Starlink rival must replace ageing satellites and has secured a 1 billion euro state-backed loan to finance 340 new spacecraft built by Airbus. The company also cancelled a satellite order from Thales Alenia Space, saving more than 100 million euros in capital expenditure.
Chief Executive Jean-Francois Fallacher said the company is exploring satellite-to-smartphone connectivity, known as direct-to-device services, as part of its longer-term growth strategy.
Shares rose 6.6% in early trading, extending gains to roughly 33% this year, reflecting investor optimism that the Eutelsat Starlink rival may finally be gaining traction in Europe’s fast-evolving satellite broadband market.