Eutelsat Communications S.A. trades as Eutelsat Group but is commonly referred to just as Eutelsat. Founded over 48 years ago, the company provides coverage over the entire European continent, Africa, Asia, the Middle East, as well as the Americas. According to revenue, it ranks as the world’s third-largest satellite operator. Subsidiaries of the company are Satmex, Fransat, Skylogic, as well as Eutelsat and OneWeb. The latter is a direct competitor to Elon Musk’s Starlink.
A promising forecast for a promising year
French satellite operator Eutelsatย ETL.PA 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 homegrown solutions for satellite services, aiming to reduce their reliance on U.S. providers,ย 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, whereย Elon Musk’s Starlinkย dominates. However, CEO Jean-Franรงois 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.
How other demands let everything fall into place
Besides government services, these areas include in-flight connectivity and maritime services, Fallacher said. Kuiper Systems LLC, or better known as Project Kuiper, was established in 2019 and is a subsidiary of Amazon. The purpose is to deploy large satellite internet constellations. This will provide low-latency broadband connectivity. Approval for the deployment of 3,236 of these satellites was given on 20 July 2020.
Eutelsat said revenues from its low Earth orbit (LEO) satellites rose 84.1% yearly to 187 million euros. Higher revenues for government services reflected servicesย delivered in Ukraineย and increased demand from other non-U.S. governments,ย particularly Taiwan, Fallacher said. The German governmentย has been payingย for Ukraine’s access to Eutelsat’s network for about a year.
Eutelsat: A big company with big plans
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 is 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. Office locations for OneWeb are in London, Paris as well as in Virginia in the U.S. The satellite manufacturing facility, Airbus OneWeb Satellites, is based in Florida.
It is a joint venture with Thales Defense and Space. Eutelsat is undergoing a radical shake-up following the appointment of a new CEO and chairman, as well as new injections of capital led by the French state alongside Britain and other anchor shareholders for 1.5 billion euros.ย Eutelsat’s shares were up 1.2% at 0747 GMT. The stock had climbed 30% this year as of Tuesday’s closing price.
In the course of the past couple of years, the telecommunications industry has drastically evolved. With that evolution, we have also come to realize the importance thereof. Satellite communication specifically has become an indispensable part of everyone’s daily lives, as well as how businesses operate. Connectivity now has expanded across the globe, without always having the need for something such as fiber optic cables or other forms of infrastructure. Truly a game changer in the dynamic and ever-changing digital world.
GCN.com/Reuters