Starlink rival Eutelsat's Q3 revenue meets forecasts as LEO growth offsets video decline

Tue, 12th May 2026 16:45

* Q3 revenue 284 million euros, in line with ⁠estimates

* Satellite internet services grow 65%, video falls 13.3%

* Revenue from 10-year French military contract started Q4

May 12 (Reuters) - European satellite ‌operator Eutelsat on Tuesday reported third-quarter revenue broadly in line with market expectations, as growth ⁠in its low Earth orbit internet business helped ⁠offset continued weakness in video.

Investors are watching for the point at which LEO growth outweighs the decline in Eutelsat's legacy broadcast business, after the company's $3.4 billion acquisition of OneWeb in 2023 reshaped it as ‌a connectivity provider.

Like-for-like revenue from video, government services, mobile and fixed connectivity for the three months ended March 31 rose 0.9% year-on-year to 284 million euros ($334 million), compared with a compiled analyst consensus of 286 million euros. Estimates had ranged between 276 million and 296 million euros.

Revenue from low Earth ‌orbit, or LEO, services jumped 65%. Revenue from video fell 13.3%, hit by contract terminations and the impact of ‌sanctions on Russian channels. Connectivity revenue rose 15.3%.

Since the OneWeb acquisition, the company has expanded its satellite internet services to tap demand for space-based connectivity, driven in part by the growing popularity of Elon Musk's Starlink.

The Paris-based group owns OneWeb, a network ‌of more than 600 LEO satellites that provides internet services to government, military, aviation and maritime customers. France and Britain, two of its largest investors, back Eutelsat ⁠as Europe's ⁠main homegrown rival to Starlink.

Eutelsat said revenue from ‌a 10-year contract with the French military is expected to be recognised from the fourth quarter ending in June.

The company recently secured about 5 billion euros in government-led refinancing. ‌The first deliveries of 440 new OneWeb satellites are due by the end of this year, with launches set to begin in 2027.