France Rescues Eutelsat, Eyes Starlink Battle

Eutelsat announced that its revenue for the first half of the financial year reached 592 million euros, surpassing analysts' expectations. The company, now majority-owned by the French state after a 1.5 billion euro rescue, has significantly reduced its operating losses and net debt.

France views Eutelsat, through its ownership of OneWeb, as Europe's primary challenger to Starlink. OneWeb's revenue saw a nearly 60% jump, contributing substantially to Eutelsat's overall sales and offsetting declines in legacy broadcasting.

To modernize its constellation, Eutelsat secured a 1 billion euro state-backed loan for 340 new Airbus satellites. The company is also exploring direct-to-device satellite services and responded to a request to assist Iran with internet access. Furthermore, Eutelsat canceled a large satellite order, saving over 100 million euros.

Following these developments and credit rating upgrades, Eutelsat is proceeding with bond refinancing. The company's shares have seen significant gains this year, reflecting investor confidence.