LEO Satellites Lift Eutelsat Amidst Legacy Video Struggles
Eutelsat's third-quarter revenue meets expectations as its low Earth orbit internet business grows, compensating for a decline in video. After acquiring OneWeb, Eutelsat has transformed into a connectivity provider, with investors closely monitoring its performance. Google is in talks with SpaceX for its orbital data center project, Suncatcher.
Eutelsat, a major European satellite operator, reported that its third-quarter revenue met market expectations, thanks to the expansion of its low Earth orbit (LEO) internet business, which has helped counterbalance its struggling video sector. This shift comes after Eutelsat's strategic $3.4 billion acquisition of OneWeb in 2023, repositioning the company as a connectivity provider.
Simultaneously, Alphabet's Google announced ongoing discussions with SpaceX and other entities about potential launches for its ambitious Project Suncatcher. This initiative aims to create an orbital data center network of solar-powered satellites, equipped with Google's Tensor Processing Units, expected to launch its first prototype with Planet Labs by 2027.
In related developments, SES, another leading satellite operator, experienced an 80% increase in constant-currency sales due to high demand from airlines for inflight connectivity, significantly boosting its share price. Adjusted core earnings also surpassed market predictions, reinforcing confidence in the satellite sector's growth potential.
(With inputs from agencies.)
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