European satellite operator Eutelsat said third-quarter revenue was broadly in line with market estimates, as strong expansion in its low Earth orbit (LEO) internet segment helped mitigate ongoing weakness in its video business.
The company reported like-for-like revenue for video, government services, mobile and fixed connectivity for the three months ended March 31 rose 0.9% year-on-year to 284 million euros. That result compared with a compiled analyst consensus of 286 million euros, with estimates spanning from 276 million to 296 million euros.
Revenue from LEO services increased sharply, jumping 65%. By contrast, video revenue declined 13.3%, a fall attributed to contract terminations and the impact of sanctions on Russian channels. Connectivity revenue across relevant segments rose 15.3%.
Investors remain focused on the point at which growth in LEO connectivity outpaces the decline in Eutelsat’s legacy broadcast operations. The company completed a 3.4 billion dollar acquisition of OneWeb in 2023, a move that repositioned Eutelsat as a connectivity provider and expanded its addressable markets.
Headquartered in Paris, the group now owns OneWeb, a network of more than 600 low Earth orbit satellites that supplies internet services to government, military, aviation and maritime customers. France and Britain, identified among the company’s largest investors, support Eutelsat as a primary European competitor to other space-based internet providers.
Eutelsat said revenue tied to a 10-year contract with the French military is expected to be recognised from the fourth quarter ending in June. The company also recently secured about 5 billion euros in government-led refinancing.
On the hardware side, Eutelsat noted that the first deliveries of 440 new OneWeb satellites are scheduled by the end of this year, with launches planned to begin in 2027. The company provided the currency conversion used in its reporting: 1 dollar equals 0.8511 euros.
Overall, the quarter illustrates an operator in transition: rapid LEO growth is delivering meaningful revenue momentum, but legacy video declines continue to weigh on the top line until connectivity gains fully compensate for those losses.