Latest news with #JeanFrancoisFallacher
Reuters
7 days ago
- Business
- Reuters
Starlink rival Eutelsat beats estimates on Ukraine boost, government demand
Aug 5 (Reuters) - French satellite operator Eutelsat ( opens new tab reported better-than-expected annual earnings on Tuesday, driven by growing interest in its satellite internet services from government and corporate customers. Eutelsat gained the spotlight this year as European governments sought home-grown solutions for satellite services, aiming to reduce their reliance on U.S. providers, such as Elon Musk's Starlink. Revenues from video, connectivity and government services reached 1.23 billion euros ($1.43 billion) in the year ended June 30, up 0.8% from a year earlier. Financial analysts had expected those revenues to total 1.21 billion euros, according to a consensus poll provided by Eutelsat. The Paris-based group hopes to offset declining income from its video business by gaining a foothold in the satellite internet market, where Elon Musk's Starlink dominates. However, CEO Jean-François Fallacher told reporters the company "won't compete head-to-head with Starlink or Amazon's Kuiper in consumer markets," focusing instead on segments that make it competitive. Besides government services, these areas include in-flight connectivity and maritime services, Fallacher said. Eutelsat said revenues from its low Earth orbit (LEO) satellites rose 84.1% yearly to 187 million euros. Higher revenues for government services reflected services delivered in Ukraine and increased demand from other non-U.S. governments, particulary Taiwan, Fallacher said. The German government has been paying for Ukraine's access to Eutelsat's network for about a year. Eutelsat expects LEO revenues to grow by 50% next year, saying it will compensate, but not yet outweigh the decline in its legacy business, which are impacted by additional Russian sanctions. However, the operator said it took a 1.1 billion euro loss through the year, partly due to impairments from its geostationary (GEO) assets. In addition to its 34 GEO satellites - mostly used for broadcasting and fixed satellite internet - Eutelsat owns a constellation of over 600 in low Earth orbit, managed by its London-based subsidiary OneWeb, which was acquired in 2023. The company is undergoing a radical shake-up following the appointment of a new CEO and a chairman as well as new injections of capital led by the French state alongside Britain and other anchor shareholders for 1.5 billion euros. Eutelsat's shares were up 1.2% at 0747 GMT. The stock had climbed 30% this year as of Tuesday's closing price. ($1 = 0.8643 euros)
CNA
05-06-2025
- Business
- CNA
South Korea's Hanwha to offload Eutelsat stake, filing shows
South Korea's Hanwha Systems is offering to sell its entire 5.4 per cent stake in Eutelsat for about 78 million euros ($85 million), a bookrunner filing showed on Wednesday, as the satellite operator moves ahead with its new financing plan. Eutelsat has garnered unprecedented attention this year from governments looking for home-grown alternatives to SpaceX's Starlink for satellite internet connectivity. The Franco-British company is seeking billions in new funding to finance the second generation of its low Earth orbit (LEO) OneWeb satellites and to fulfil commitments to the European Union's IRIS² project. Finance chief Christophe Caudrelier said in May that Eutelsat was looking for capital investors. Hanwha's shares are being offered at 3.00 euros ($3.42) apiece, representing a 13.9 per cent discount to Eutelsat's closing price of 3.48 euros on Wednesday, a term sheet from bookrunner Citi showed. It also marks a steep 74 per cent loss on Hanwha's initial $300 million investment made in OneWeb in 2021, as the stake is now valued at just $85 million. The trade is set to be concluded on Thursday. A representative for Hanwha resigned from Eutelsat's board in April, signalling the Korean company's diminishing involvement with the satellite operator. Eutelsat is reshuffling its upper echelons. In a surprise move last month, it appointed Jean-François Fallacher as its new CEO and it is also looking for a new chairperson after the current one announced his departure along with four other board members in February. Hanwha became a shareholder in OneWeb before it merged with Eutelsat in 2023, joining India's Bharti and Japan's SoftBank as OneWeb's anchor investors at the time. It is also one of OneWeb's distributors in South Korea as part of an agreement signed in 2023 with the aim of securing LEO communications for the Korean government and providing internet access to underserved areas. Last week, South Korea's Science Ministry granted licenses to Starlink and Eutelsat OneWeb to operate in the country, with services expected to be launched soon.
