France-backed Eutelsat reports stronger revenue in Starlink push

Eutelsat on Friday reported ​better-than-expected revenue, bolstered by efforts from France ​to advance plans for a ‌European ​competitor to Elon Musk's Starlink, boosting the satellite operator as it pivots to focus on internet services.

Revenue for the first half ‌of the year ended in December reached 592 million euros ($702 million), surpassing analyst estimates of 581 million euros. Though it remained loss-making, the company reduced operating losses by 85%.

Eutelsat also slashed net ‌debt by more than half after the French state, now its top shareholder, led ‌a 1.5 billion euro rescue last year to stabilise a balance sheet shaken by a declining video business and rising borrowing costs. France sees Eutelsat as Europe's only viable challenger to Starlink, given its ownership of OneWeb, ⁠the only ​other active satellite network ⁠in low Earth orbit (LEO).

Those satellites, folded into the group in the 2023 merger with London-based OneWeb, are used ⁠by governments and militaries and have become strategic assets for national security. The bet is starting to ​show early signs of traction even as high costs persist.

Eutelsat said OneWeb's revenue ⁠jumped almost 60% and now makes up about a fifth of group sales, partly outweighing the steady decline of ⁠legacy ​broadcasting. Still, it must replace ageing OneWeb satellites and has secured a state-backed loan of 1 billion euros to buy 340 new Airbus spacecraft.

Eutelsat also cancelled a satellite order ⁠from Thales Alenia Space, trimming its expected full-year capital expenditure to about 900 million euros from ⁠an earlier range ⁠of up to 1.1 billion. The company said it would now proceed with refinancing its bonds, after last year's cash call triggered upgrades from credit ‌rating agencies.

($1 = ‌0.8427 euros)