Eutelsat's Stellar Year: Boosting Revenues and Navigating Challenges

Eutelsat reported impressive annual earnings, driven by a surge in demand for satellite internet services, especially from governments seeking alternatives to U.S. providers. The company is navigating industry shifts by growing revenues in low Earth orbit satellites, despite challenges in its traditional video business.

French satellite operator Eutelsat has reported a promising set of annual earnings, exceeding expectations with significant contributions from its satellite internet services. The company has become increasingly important in Europe as governments look for homegrown satellite solutions, reducing their dependence on U.S. providers.

Revenues for Eutelsat grew modestly to 1.23 billion euros, outpacing analyst predictions. Key drivers included increased government and connectivity service revenues, alongside a noteworthy performance in the low Earth orbit (LEO) segment, where earnings spiked by over 84%.

Despite the positive growth, Eutelsat faces challenges, including declining video business sales and financial losses linked to impairments. The company, however, is optimistic about further LEO growth and is undergoing a strategic overhaul following leadership changes and capital injections from France, Britain, and other stakeholders.

(With inputs from agencies.)