Rival satellite service provider Eutelsat issues alarm over dwindling profit margins amid growing demand, contrasting with the success of Starlink.
Eutelsat's Acquisition of OneWeb Boosts Revenue and Repositions Company in LEO Satellite Market
Eutelsat, the leading satellite operator in Europe, has seen a significant improvement in its financial performance following the acquisition of OneWeb in 2023. OneWeb now accounts for approximately 15% of Eutelsat's total revenue.
In the fiscal year 2024-25, Eutelsat's revenue increased by 84% to €187 million (approximately $205 million), with OneWeb's contribution expected to grow another 50% to €280 million in 2025-26, representing 22.5% of total revenue. This growth is primarily driven by the expansion of LEO satellite internet services, targeting rural broadband, government, and military markets in Europe, notably Ukraine and France, as well as the aerospace sectors.
Eutelsat's strategy with OneWeb differs notably from Elon Musk’s Starlink. While Starlink aggressively targets global consumer broadband with a large LEO constellation including laser inter-satellite links, Eutelsat OneWeb focuses on hybrid GEO-LEO connectivity, emphasizing secure, enterprise, and government communications rather than mass consumer broadband.
This niche approach is supported by Eutelsat's €1.5 billion capital raise in mid-2025 and a €10.6 billion partnership with the EU’s IRIS² program aimed at European digital sovereignty and hybrid network resilience. Compared to Starlink, Eutelsat OneWeb:
- Relies on third-party satellite launches and currently lacks laser links, potentially limiting network latency and throughput.
- Prioritizes government, rural, and enterprise contracts, such as with the UK government, Orange, and military sales in Ukraine and France.
- Leverages European and international strategic partnerships and funding for steady, long-term sustainable growth rather than rapid global consumer market conquest.
Eutelsat's CEO, Jean-Francois Fallacher, mentioned the French government's plan to more than double its stake in Eutelsat as part of a €1.35bn capital raising. The French government has also agreed to a 10-year deal to buy satellite communications services from OneWeb.
Despite the challenges in realising value from OneWeb, which is less technologically advanced than Starlink, Eutelsat expects its OneWeb business to outweigh its declining legacy business within two years. Fallacher expects revenues from OneWeb to grow by a further 50% this year and to drive higher returns within the same timeframe.
However, Eutelsat's finances have been stretched by the OneWeb acquisition, and the company needs to raise future investment to meet its obligations as part of the Iris2 consortium to build a secure European low Earth orbit constellation. Eutelsat reported a €1.1 billion annual net loss in the current year, compared to a €310 million loss the previous year.
Despite these challenges, Eutelsat appears positioned for steady growth powered by government partnerships and strategic European initiatives, contrasting with Starlink's faster but more capital-intensive consumer expansion. Eutelsat's CEO, Jean-Francois Fallacher, stated that the French government's cash injection provides "absolutely enough to finance the future capital expenditure of the company".
In summary, the acquisition and integration of OneWeb have meaningfully boosted Eutelsat's revenues and repositioned it as a competitive actor in the LEO satellite market, with a more focused business model compared to Starlink's consumer-centric globe-spanning ambition. Eutelsat is not "in a race against" Kuiper, but rather focused on delivering secure, enterprise, and government communications from low Earth orbit.
- The acquisition of OneWeb by Eutelsat, a leading satellite operator in Europe, has positioned the company as a significant player in the Low Earth Orbit (LEO) satellite market, with OneWeb contributing approximately 15% of Eutelsat's total revenue.
- Eutelsat's strategy with OneWeb focuses on hybrid GEO-LEO connectivity, prioritizing secure, enterprise, and government communications, in contrast to Elon Musk’s Starlink, which aggressively targets global consumer broadband.
- Eutelsat's financial performance saw a significant improvement following the acquisition of OneWeb, with revenue increasing by 84% in the fiscal year 2024-25, and expected to grow another 50% in 2025-26.
- The growth of Eutelsat's OneWeb business is expected to outweigh its declining legacy business within two years, driven by government partnerships, strategic European initiatives, and targeted expansion in sectors such as rural broadband, government, and military markets in Europe, notably Ukraine and France, as well as the aerospace sectors.
