Revenue for the six months ending in December reached 592 million euros ($702 million), exceeding analysts’ expectations of 581 million euros. Although the company remained loss-making, it cut operating losses by 85%.
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Eutelsat also reduced its net debt by more than half after the French government — now its largest shareholder — led a 1.5 billion euro rescue package last year to stabilize its balance sheet. The company had faced pressure from a declining traditional video broadcasting business and rising borrowing costs.
France views Eutelsat as Europe’s most viable challenger to Starlink, largely due to its ownership of OneWeb, the only other active low Earth orbit (LEO) satellite network. OneWeb became part of the group following its 2023 merger with the London-based company.
The LEO satellites are used by governments and militaries and are increasingly seen as strategic assets for national security.
Eutelsat said OneWeb’s revenue surged nearly 60% and now accounts for roughly one-fifth of total group sales, helping offset the continued decline in legacy broadcasting services. However, the company must replace aging OneWeb satellites and has secured a 1 billion euro state-backed loan to purchase 340 new spacecraft from Airbus.
In addition, Eutelsat canceled a satellite order from Thales Alenia Space, lowering its projected full-year capital expenditure to about 900 million euros, down from a previous estimate of up to 1.1 billion euros.
The company also announced plans to move forward with refinancing its bonds, following credit rating upgrades after last year’s capital raise.
