Starlink rival OneWeb delivers income increase to French proprietor Eutelsat sending shares surging

OneWeb saw sales of its satellites soar last year, sending shares in its French owner Eutelsat flying this morning.

Eutelsat’s revenues jumped to €592million, ahead of expectations, sending shares about 9 per cent higher.

It was boosted by an almost 60 per cent increase in sales of OneWeb’s low earth orbit (LOE) satellites, aimed at providing access to high-speed internet where traditional ground infrastructure is hard to reach.

Applications also include broadband on aeroplanes and have been used by Ukranian forces.

In 2020, the UK government rescued OneWeb from bankruptcy before selling it to France’s Eutelsat three years later. It still retains a small stake in OneWeb and the Foreign Office last year signed a deal with the satellite firm. 

OneWeb satellites are a direct challenger to Elon Musk’s Starlink

As France ramps up defence spending, it is betting big on OneWeb given it is the only viable European challenger to Elon Musk’s Starlink.

The French government is now Eutelsat’s biggest shareholder after a €1.5billion rescue deal last year to stabilise its balance sheet.

While Eutelsat remains loss-making, it reduced operating losses by 85 per cent and slashed its net debt by more than half after the French state stepped in to increase its stake.

However, it must replace OneWeb’s ageing satellites and has secured a state-backed loan of €1billion to buy 340 new Airbus spacecraft. It said it would also look at projects providing satellite-to-smartphone internet services.

Asked about sending terminals to Iran following an internet blackout, chief executive Jean-Francois Fallacher said he would support the Iranian people as best he could.