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Eutelsat to Lead EU's Starlink Rival, Eyeing €10B Revenue
29 Oct
Summary
- Eutelsat expects over €10B in revenue from IRIS² between 2032-2040.
- The company leads the EU's IRIS² satellite network, launching in 2029.
- Eutelsat's backlog surged to €12.1 billion following IRIS² contract.
Eutelsat expects to generate more than €10 billion in commercial services revenue between 2032 and 2040, driven by its leading role in the European Union's IRIS² satellite internet project. The Franco-British operator has been selected to head the low Earth orbit (LEO) segment of IRIS², which will comprise 330 satellites, with initial launches planned for 2029 and services commencing in 2030.
This significant contract adds €8.9 billion to Eutelsat's backlog, primarily to be recognized between 2027 and 2031. The company's total backlog now stands at €12.1 billion, a substantial increase from €3.4 billion at the end of June. This development is crucial for Eutelsat as it seeks to diversify its business beyond its diminishing video broadcasting sector.
OneWeb, an Eutelsat subsidiary, currently operates over 600 satellites, with an additional 229 planned in a €1 billion expansion. Eutelsat plans to invest €3.39 billion in the IRIS² network's infrastructure between 2027 and 2034. Despite this optimistic outlook, the company's first-quarter revenue fell slightly short of expectations, registering a 2.1% decrease.
