Eutelsat (ETL.PA), the French satellite operator and rival to Elon Musk’s Starlink, reported disappointing first-quarter results on Tuesday as a sharp drop in its video broadcasting division overshadowed solid growth in government contracts, particularly in Ukraine.
Revenue for the quarter ending in September fell 1.2% year-on-year to €283 million ($330 million) on a comparable basis, missing analyst expectations of €295 million, according to company data.
The company’s video segment, which still represents 47% of total revenue and reaches over a billion global viewers, declined 10.5%, reflecting a prolonged slump in satellite TV demand and the continued fallout from European sanctions on Russian broadcasters. French regulators recently ordered Eutelsat to halt transmissions of two Russian channels tied to sanctioned entities — a move the company said would cost around €16 million this year.
Eutelsat’s other major division, government services, was the standout performer, rising 18.5% year-on-year to €52.4 million, driven by defense and connectivity contracts in Eastern Europe. Chief Financial Officer Christophe Caudrelier told analysts that while demand for satellite broadband is growing rapidly, Starlink continues to dominate the B2C market, challenging Eutelsat’s growth trajectory.
Through its subsidiary OneWeb, Eutelsat operates more than 600 Low Earth Orbit (LEO) satellites, giving it the only LEO constellation besides Starlink — a key part of Europe’s push for independent satellite infrastructure. A €1.5 billion capital infusion led by France and the UK is expected to close by the end of 2025 to help bolster competitiveness.
Despite the weak quarter, Eutelsat maintained its full-year and long-term targets, betting that its diversification into broadband and government services will offset the gradual decline of its legacy video operations.