France‑backed satellite operator Eutelsat Communications on Friday reported better‑than‑expected revenue for the first half of its 2025‑26 fiscal year, reflecting progress in its strategic pivot toward satellite internet services aimed at challenging Elon Musk’s Starlink network. Eutelsat posted revenue of €592 million ($702 million) for the six months ended December, topping analyst forecasts of about €581 million and driven by growth in its low Earth orbit (LEO) internet business under the OneWeb division.
While the company remained loss‑making, it cut operating losses by roughly 85 per cent and slashed its net debt by more than half following a €1.5 billion rescue led by the French state last year to stabilise its finances. France is now the firm’s largest shareholder and is promoting Eutelsat as Europe’s principal contender to the U.S.‑based Starlink, given OneWeb’s status alongside SpaceX’s network as one of only two operational LEO broadband constellations globally.
OneWeb’s revenue jumped nearly 60 per cent and now accounts for about a fifth of total sales, helping offset continued declines in traditional broadcast services. The company said it had secured a €1 billion state‑backed loan to acquire 340 new Airbus satellites to renew its fleet and would cancel a planned order from Thales Alenia Space, reducing expected full‑year capital expenditure to about €900 million. Eutelsat also intends to proceed with bond refinancing after credit rating upgrades triggered by last year’s capital injection.
The results underscore the French government’s bid to build a sovereign European alternative to Musk’s network, even as Eutelsat continues to grapple with high operating costs and the technical challenge of scaling its LEO constellation in a fiercely competitive global market.