European satellite operator Eutelsat reported its third-quarter revenue on Tuesday, showing that its big bet on satellite internet is finally paying off. The company matched market expectations closely. Growth in its low Earth orbit internet business helped offset ongoing weakness in its older video broadcast division. Investors have watched this transition closely. They want to see the exact moment when new internet growth finally outweighs the slow decline of the company’s legacy broadcast operations.
The Paris-based group recorded a slight 0.9% year-on-year increase in its like-for-like revenue for the three months ending March 31. This growth brought its total revenue across video, government services, mobile, and fixed connectivity to 284 million euros, which equals about $334 million. Financial analysts had guessed the company would hit a consensus of 286 million euros. Their estimates ranged mostly between 276 million and 296 million euros. Eutelsat landed comfortably within that target range.
A massive shift in consumer habits and global politics directly caused the drop in the legacy video business. Revenue from the video division fell sharply by 13.3% during the third quarter. Eutelsat lost several key broadcast contracts recently. Furthermore, global sanctions on Russian television channels took a heavy toll on this once-reliable income stream. The company knows the video broadcast market will likely continue to shrink as more people worldwide switch to streaming services over high-speed internet connections.
To survive this shift, Eutelsat made a massive move in 2023. The company spent $3.4 billion to acquire OneWeb. This bold purchase completely changed Eutelsat from a traditional television broadcaster into a modern, global connectivity provider. The gamble clearly works today. Revenue from these low Earth orbit services jumped an impressive 65% in the third quarter alone. At the same time, the company’s broader connectivity revenue rose by 15.3%.
Through the OneWeb acquisition, Eutelsat now owns and operates a sprawling network of more than 600 low Earth orbit satellites. These machines fly much closer to the planet than traditional broadcast satellites. This low altitude allows them to beam high-speed internet with very little delay. Eutelsat does not sell these services directly to everyday consumers. Instead, the company targets highly profitable clients. It provides reliable internet connections to government agencies, military forces, commercial airlines, and major maritime shipping companies.
Eutelsat faces fierce competition in this rapidly growing market. Elon Musk owns Starlink, which currently dominates the global space internet race. However, Eutelsat does not fight this battle alone. France and Britain stand out as two of the largest investors in the company. These governments actively back Eutelsat because they want a strong, homegrown European rival to challenge Starlink. They view space-based internet as a critical national security asset.
This strong government support brings massive financial benefits to the company. Eutelsat recently secured about 5 billion euros in a major government-led refinancing deal. This huge pile of cash gives the company the security it needs to plan long-term upgrades. Without this money, competing against wealthy tech giants would prove almost impossible for a traditional European operator.
Government contracts also provide long-term stability for the newly structured business. Eutelsat highlighted a lucrative 10-year contract with the French military. The company expects to begin recognizing revenue from this specific deal in its fourth quarter, which ends in June. Securing a decade-long military contract guarantees a steady cash flow while the company continues to hunt for more commercial clients in the aviation and shipping industries.
The company looks far ahead to ensure its internet speeds remain competitive—Eutelsat plans to upgrade its current fleet significantly over the next few years. The first deliveries of 440 brand-new OneWeb satellites will arrive by the end of this year. The company will then spend time preparing these machines for space. Actual rocket launches for this next-generation fleet will begin in 2027.
These new satellites will carry better technology to handle more data at faster speeds. Eutelsat needs these hardware upgrades to keep its current clients happy and win new business away from competitors. The space internet market changes rapidly, and operators must frequently replace older satellites to stay relevant. The $3.4 billion OneWeb purchase only marked the beginning of a very long and expensive race for digital dominance in space.
For now, Eutelsat leadership feels confident in its current path. The third-quarter numbers prove their strategy makes sense. The fast 65% growth in low Earth orbit services effectively stops the bleeding from the 13.3% drop in video revenue. The company successfully manages a difficult balancing act. It extracts as much money as possible from its dying television business while pouring every available resource into the booming space internet market.
Market watchers will keep a close eye on Eutelsat as the year progresses. If the company hits its targets for the fourth quarter and successfully integrates the French military contract, its stock could see renewed interest. Eutelsat proves that traditional European space companies can still adapt, fight back, and secure their place in the modern space economy.
