European satellite company Eutelsat announced Tuesday that its third-quarter financial results aligned with market predictions, as expanding low Earth orbit internet operations helped balance declining video service revenues.
Market analysts are closely monitoring when the company’s LEO internet growth will fully compensate for losses in its traditional broadcasting division, following Eutelsat’s massive $3.4 billion purchase of OneWeb last year that transformed it into a major connectivity provider.
For the quarter ending March 31, comparable revenues from video services, government contracts, and mobile and fixed connectivity increased 0.9% compared to the previous year, reaching 284 million euros ($334 million). This figure came close to analyst projections of 286 million euros, with estimates ranging from 276 million to 296 million euros.
The company’s low Earth orbit services experienced dramatic expansion with revenues surging 65%. Meanwhile, video service income dropped 13.3% due to canceled contracts and restrictions affecting Russian broadcasting channels. Connectivity revenues climbed 15.3%.
Following the OneWeb purchase, Eutelsat has broadened its satellite internet offerings to capitalize on increasing demand for space-based connectivity services, partly fueled by the rising success of Elon Musk’s Starlink network.
The Paris-headquartered corporation operates OneWeb, which consists of over 600 LEO satellites delivering internet services to government agencies, military organizations, aviation companies, and maritime clients. Both France and Britain, among its primary financial backers, support Eutelsat as Europe’s leading domestic competitor to Starlink.
Company officials indicated that income from a decade-long agreement with French military forces should begin appearing in financial records during the fourth quarter ending in June.
Eutelsat recently obtained approximately 5 billion euros through government-supported refinancing efforts. Initial shipments of 440 additional OneWeb satellites are scheduled for completion by year’s end, with launch operations planned to commence in 2027.
