European version of "Starlink" shows initial signs of success: semi-annual revenue exceeds expectations, losses narrowed by 85%

On Friday, February 13th, European satellite communications company Eutelsat announced quarterly revenue that exceeded expectations, thanks to France’s efforts to promote Europe’s version of the “Starlink” competition project.

This better-than-expected revenue performance has enabled the European satellite operator to shift its business focus toward internet services.

As of the first half of the fiscal year ending December last year, revenue reached 592 million euros (approximately $702 million), surpassing analysts’ forecast of 581 million euros. Although the company is still operating at a loss, its operational loss has decreased by 85%.

The French government is now the company’s largest shareholder. Last year, Eutelsat significantly reduced its net debt through a 1.5 billion euro aid package led by the French government, aimed at stabilizing its balance sheet damaged by declining business and rising borrowing costs.

“Starlink” Alternative

France has regarded Eutelsat as the only competitive “Starlink” alternative in Europe because it owns the OneWeb network, which is the only active satellite network in low Earth orbit besides “Starlink.”

In 2023, after merging with OneWeb, the company’s satellites were incorporated into the group and are now used by European governments and military forces, being considered strategic assets that impact national security.

Eutelsat stated that revenue from the OneWeb satellite network increased by nearly 60%, currently accounting for about one-fifth of the group’s sales, which has somewhat offset the ongoing decline in traditional broadcasting business.

Although high costs remain an issue, the low Earth orbit satellite deployment initiative has begun to show preliminary results.

However, the company urgently needs to replace its aging OneWeb satellites. To this end, it has secured a government-backed loan of 1 billion euros to purchase 340 new satellites from a shell company.

Additionally, Eutelsat has canceled its satellite orders with Thales Alenia Space and has lowered its expected annual capital expenditure from a previous maximum of 1.1 billion euros to about 900 million euros.

(Source: Cailian Press)