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Eutelsat Meets Revenue Forecasts as OneWeb Gains Government Clients Amid Geopolitical Shifts

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Eutelsat reported €300 million in third-quarter revenue for its 2024–25 fiscal year, slightly below last year’s figure but in line with analyst expectations. The French satellite operator, which owns OneWeb, the world’s second-largest low-Earth orbit (LEO) satellite constellation, is seeing a rise in government demand for secure, non-American and non-Chinese satellite services.

Key Financials:

  • Q3 revenue fell 1.9% year-on-year

  • Analyst consensus was €302 million, with estimates ranging from €294 million to €307 million

  • Government services revenue rose 10.2%, the fastest-growing segment, fueled by geopolitical demand for independent satellite connectivity

Strategic Positioning:

Eutelsat’s OneWeb network, with over 600 LEO satellites, offers secure broadband services to governments and militaries at approximately 1,200 km altitude. This positions it as a European alternative to SpaceX’s Starlink, which has over 7,000 satellites and deep traction with commercial clients.

Eutelsat CFO Christophe Caudrelier emphasized the strategic importance of non-U.S. and non-Chinese alternatives in satellite communication:

“With the current geopolitics, there is interest from many countries… Many non-aligned countries are seeking alternative, non-American, non-Chinese solutions,” he stated.

Challenges & Developments:

  • The company experienced a drop in its U.S. Department of Defense contract renewal rate to 50%, citing structural changes in U.S. spending under President Donald Trump’s administration. Without that one-off, the renewal rate would have been closer to 70%.

  • Eutelsat also took a €16 million revenue hit due to EU sanctions requiring the cessation of Russian channel broadcasts.

  • The firm is actively seeking new capital investors to support its future financing needs.

Despite the recent CEO replacement, Eutelsat reaffirmed its full-year outlook, signaling stability in operations as it navigates market transitions and growing demand for secure satellite services from non-aligned nations.

Could Eutelsat Replace Starlink for Ukraine’s Satellite Internet Needs?

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As speculation grows about Ukraine potentially losing access to Elon Musk’s Starlink satellite internet, a critical tool for military communications during the ongoing war with Russia, attention has turned to Eutelsat, a European satellite provider, as a potential alternative. The Franco-British company, which recently merged with Britain’s OneWeb, has reportedly been in talks with the European Union to provide additional services to Ukraine. This follows concerns over the U.S. possibly using Starlink access as leverage in diplomatic discussions with Kyiv regarding critical minerals.

Here’s a breakdown of how Eutelsat could step in to support Ukraine’s communication needs.

How Crucial is Starlink to Ukraine?

Starlink’s satellite internet system has become indispensable for Ukraine, especially after its fixed-line and mobile networks were severely damaged by Russian bombings since the invasion began in February 2022. The system allows users to access the internet via a small satellite dish that connects to a constellation of satellites orbiting overhead.

While Starlink’s internet services are also available to civilians, the primary users are Ukraine’s military forces, which rely heavily on Starlink for communication amid constant jamming and interception of signals. The system is vital for battlefield command and control, and Ukraine has also used Starlink to guide attack drones, though SpaceX restricted this use two years ago. Initially funded by SpaceX, the U.S. government later took over the provision of Starlink to Ukraine. Recently, Poland confirmed it had been covering Ukraine’s subscription fees and would continue to do so.

How Does Eutelsat Compare to Starlink?

Eutelsat has already been providing support for government and institutional communications in Ukraine and has stated it can offer alternatives for certain government and defense applications. The company controls a global satellite network after merging with OneWeb in 2023, making it one of the few firms, along with Starlink, to offer global coverage via Low Earth Orbit (LEO) satellites.

While Eutelsat’s fleet consists of around 630 LEO satellites, compared to Starlink’s more than 7,000, it still offers the same capabilities within Europe, according to the company. Eutelsat provides speeds of up to 150 Mbps, slightly lower than Starlink’s promise of 200 Mbps. However, Eutelsat’s OneWeb terminals are significantly more expensive, with costs up to $10,000 per terminal plus monthly subscriptions. In contrast, Starlink charges Ukrainian users a one-time payment of $589 for the terminal, with monthly fees ranging from $95 to $440, depending on usage.

Despite this, the question remains whether any donor countries or organizations would be willing to fund the high cost of OneWeb subscriptions for Ukraine. France and the UK, which hold a combined 24.8% stake in Eutelsat, are actively involved in diplomatic efforts surrounding a peace deal with the U.S.

Are There Any Other Alternatives?

While global competition for Starlink is growing, it remains limited. Luxembourg-based SES provides satellite services to NATO defense forces through its medium Earth orbit O3b mPOWER constellation, but it focuses primarily on corporate customers and governments. SES’s services are not consumer-friendly and do not cater directly to end-users.

Additionally, some European initiatives like IRIS² and GOVSATCOM, which Ukraine is interested in, may take years before they are fully operational, leaving a gap in immediate satellite communication support for the country.