Eutelsat Navigates LEO Surge While Traditional Video Lags

Eutelsat, a European satellite operator, reported steady revenue for the third quarter, driven by growth in its low Earth orbit internet business. The company, now reshaped as a connectivity provider after acquiring OneWeb, is expanding its satellite internet services to counter a decline in traditional video broadcast revenue.

Eutelsat, the European satellite operator, reported third-quarter revenue in line with market expectations on Tuesday. The company witnessed growth in its low Earth orbit (LEO) internet business, offsetting continued weaknesses in video services. This follows its recent $3.4 billion acquisition of OneWeb, transforming it into a connectivity provider.

The revenue segments for video, government services, and connectivity for the three months ending on March 31 increased by 0.9% year-on-year to 284 million euros, close to the analyst consensus of 286 million euros. Meanwhile, revenue from LEO services surged by 65%, though video revenue saw a decline of 13.3%.

Riding high on its OneWeb acquisition, Eutelsat is expanding its internet services amidst the rising demand for space-based connectivity, fueled by competitors like Elon Musk's Starlink. The company, with a strong backing from France and Britain, is set to deliver almost 440 new satellites by year's end, increasing its competitive edge as Europe’s contender to Starlink.