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Eutelsat Misses Forecasts as Weak Video Sales Offset Growth in Government Services

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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.

Britain Joins France in €1.5 Billion Capital Boost for Starlink Rival Eutelsat

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Britain will invest €163.3 million ($191 million) in satellite operator Eutelsat, adding to a larger funding injection from France designed to help the company compete with SpaceX’s Starlink, Eutelsat announced on Thursday. This joint recapitalization effort highlights Europe’s drive to enhance its sovereign capabilities in key areas like satellite communications and defense, particularly in light of Russia’s invasion of Ukraine and the U.S.’s “America First” policies.

During a three-day state visit to Britain, French President Emmanuel Macron publicly thanked London for the investment in a post on X. Following the announcement, Eutelsat shares jumped as much as 10% in early trading on the Paris stock exchange.

France’s state shareholding agency plans to inject €750 million later this year, becoming Eutelsat’s largest shareholder with a 29.65% stake. Meanwhile, Britain’s new investment will allow it to maintain its 10.89% stake, preventing dilution from France’s recapitalization, and preserve influence in European space policy post-Brexit.

Britain will also keep its “golden share,” which grants veto powers over OneWeb, the London-based subsidiary of Eutelsat, according to a source familiar with the matter. The total recapitalization now reaches €1.5 billion following the UK’s participation.

Peter Kyle, the British science and technology minister, emphasized the importance of resilient satellite connectivity for European national security in an increasingly contested space environment. He also stated that the investment demonstrates the UK’s commitment to developing these technologies and maintaining a significant position in the global satellite communications market.

This deal could pave the way for Britain’s involvement in the EU’s IRIS² satellite constellation project, for which Eutelsat is a key contractor, according to French newspaper Les Echos, which first reported on the UK’s investment.

Britain initially became a shareholder in OneWeb in 2020 through a $1 billion bailout, before OneWeb merged with Eutelsat in 2023. Eutelsat currently manages 34 geostationary satellites and over 600 low Earth orbit satellites, making it the world’s second-largest constellation after Starlink.

Eutelsat’s stock has surged 64% this year, boosted by France’s financial backing and investor confidence in its satellites as a viable alternative to Starlink.

Viasat Confirmed as Victim of Chinese Salt Typhoon Cyberespionage Campaign

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Satellite communications firm Viasat Inc has been identified as a victim of the Salt Typhoon cyberespionage operation linked to China during the 2024 U.S. presidential campaign, Bloomberg News reported on Tuesday, citing sources familiar with the investigation.

The breach was discovered earlier this year. Viasat, working alongside a government investigation and an independent cybersecurity partner, found evidence of unauthorized access through a compromised device but stated there was no evidence of customer data being affected.

“Viasat believes that the incident has been remediated and has not detected any recent activity related to this event,” the company said in a statement.

U.S. officials have previously accused Salt Typhoon hackers of breaching multiple telecom companies—including Verizon, AT&T, and Lumen—stealing sensitive telephone audio intercepts and extensive call records. In December, the government added a ninth unnamed telecom firm to the list of victims, revealing the hackers had broad network access to track millions of individuals and record phone calls.

Reportedly, Salt Typhoon targeted individuals connected to both major presidential campaigns, including those of Democrat Kamala Harris and Republican Donald Trump.

China has denied the allegations, labeling them as disinformation and asserting Beijing’s opposition to cyberattacks and cyber theft.