Eutelsat Navigates Satellite Market with Strategic Shift

Eutelsat, a French satellite operator, reported higher-than-expected earnings due to rising demand for satellite internet services from government and corporate sectors. While aiming to reduce European reliance on U.S. providers, Eutelsat focuses on in-flight, maritime, and government services, amidst challenges from sanctions and evolving market dynamics.

On Tuesday, French satellite operator Eutelsat announced better-than-anticipated annual earnings, spurred by increased demand for their satellite internet services from both governments and corporations. The company has gained attention as European governments look for local alternatives to reduce dependency on U.S.-based providers like Elon Musk's Starlink.

Eutelsat's revenues from video, connectivity, and government services reached 1.23 billion euros ($1.43 billion) for the year ending June 30, surpassing financial analysts' predictions of 1.21 billion euros. The Paris-headquartered company is focusing on offsetting declining video business income by tapping into the satellite internet market, particularly in sectors beyond mainstream consumer markets.

Besides government services, Eutelsat is targeting in-flight connectivity and maritime services, according to CEO Jean-François Fallacher. They reported a significant 84.1% rise in low Earth orbit (LEO) satellite revenues, driven by increased demand from Ukraine, Taiwan, and support from Germany for Ukraine's network access. Despite challenges like Russian sanctions, Eutelsat forecasts a 50% LEO revenue growth next year, part of its strategic transformation aided by new leadership and a 1.5 billion euro capital investment.

(With inputs from agencies.)