Eutelsat’s Strategic Pivot to Space Internet Gains Momentum

Eutelsat has shown that its sweeping corporate overhaul is taking effect. The latest half-year results confirm the expected drag on the traditional TV business, but the newly forged space?internet division is expanding rapidly and offsetting the losses. Is a durable turnaround within reach for the satellite operator?

Key figures for the first half of 2025/26
- Revenue: ?592 million (flat on a like-for-like basis)
- LEO segment: ?111 million (+60%)
- Video business: ?266,5 million (-12,3%)
- Financing: Around ?1 billion secured for new satellites
- Outlook: Full-year targets confirmed, capex reduced

A shift in the cosmos: from TV decline to space connectivity

The figures illustrate a profound transformation of Eutelsat?s business model. The legacy video segment is contending with structural pressures and ongoing sanctions against Russian broadcasters, while the earth?orbit connectivity drive is becoming the new growth engine. With the LEO business up nearly 60%, it now contributes roughly 20% of total revenues. This momentum helped keep group revenue on a like-for-like basis despite the double?digit slide in traditional TV.

Strengthened balance sheet, lower investments

Beyond the operating dynamics, management has solidified the company?s financial footing. A December equity raise together with a fresh financing package totaling nearly ?1 billion underpins the expansion of the OneWeb constellation, including 440 new Airbus satellites. On the cost side, the annual capex guidance was trimmed from ?1.1 billion to about ?900 million. Rating agencies Moody?s and Fitch have already responded with an improved credit assessment.

Management remains confident in the plan and reiterates the annual targets. With secured financing and an expected 50% growth in the LEO segment for the full year, the emphasis is shifting decisively from the shrinking TV market toward modern satellite connectivity.