Finance
Starlink rival Eutelsat beats estimates on Ukraine boost, government demand
Published by Global Banking and Finance Review
Posted on August 5, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 5, 2025
2 min readLast updated: January 22, 2026
Eutelsat's earnings surpassed forecasts, driven by government demand and Ukraine services, positioning it against Starlink in satellite internet.
By Gianluca Lo Nostro
(Reuters) -French satellite operator Eutelsat reported better-than-expected annual earnings on Tuesday, driven by growing interest in its satellite internet services from government and corporate customers.
Eutelsat gained the spotlight this year as European governments sought home-grown solutions for satellite services, aiming to reduce their reliance on U.S. providers, such as Elon Musk's Starlink.
Revenues from video, connectivity and government services reached 1.23 billion euros ($1.43 billion) in the year ended June 30, up 0.8% from a year earlier.
Financial analysts had expected those revenues to total 1.21 billion euros, according to a consensus poll provided by Eutelsat.
The Paris-based group hopes to offset declining income from its video business by gaining a foothold in the satellite internet market, where Elon Musk's Starlink dominates.
However, CEO Jean-François Fallacher told reporters the company "won't compete head-to-head with Starlink or Amazon's Kuiper in consumer markets," focusing instead on segments that make it competitive.
Besides government services, these areas include in-flight connectivity and maritime services, Fallacher said.
Eutelsat said revenues from its low Earth orbit (LEO) satellites rose 84.1% yearly to 187 million euros.
Higher revenues for government services reflected services delivered in Ukraine and increased demand from other non-U.S. governments, particulary Taiwan, Fallacher said.
The German government has been paying for Ukraine's access to Eutelsat's network for about a year.
Eutelsat expects LEO revenues to grow by 50% next year, saying it will compensate, but not yet outweigh the decline in its legacy business, which are impacted by additional Russian sanctions.
However, the operator said it took a 1.1 billion euro loss through the year, partly due to impairments from its geostationary (GEO) assets.
In addition to its 34 GEO satellites - mostly used for broadcasting and fixed satellite internet - Eutelsat owns a constellation of over 600 in low Earth orbit, managed by its London-based subsidiary OneWeb, which was acquired in 2023.
The company is undergoing a radical shake-up following the appointment of a new CEO and a chairman as well as new injections of capital led by the French state alongside Britain and other anchor shareholders for 1.5 billion euros.
Eutelsat's shares were up 1.2% at 0747 GMT. The stock had climbed 30% this year as of Tuesday's closing price.
($1 = 0.8643 euros)
(Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham)
Eutelsat's earnings were boosted by increasing interest in its satellite internet services from government and corporate customers, particularly due to demand from Ukraine and other non-U.S. governments.
Revenues from government services rose significantly, reflecting services delivered in Ukraine and increased demand from countries like Taiwan.
Eutelsat's CEO stated that the company will not compete directly with Starlink or Amazon's Kuiper in consumer markets, focusing instead on government services, in-flight connectivity, and maritime services.
Eutelsat reported a loss of 1.1 billion euros for the year, partly due to impairments from its geostationary assets.
Eutelsat expects its low Earth orbit revenues to grow by 50% next year, although this growth is not yet expected to outweigh the decline in its legacy business.
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