Eutelsat's OneWeb Deals and World Cup Broadcast Fail to Shield Shares from 27% Slump
04.06.2026 - 17:33:56 | boerse-global.de
Investors in Eutelsat are accustomed to volatility, but last week provided a particularly harsh reminder of the stock's twitchy nature. The satellite operator saw its shares shed nearly 27% in seven days, closing Friday at €3.27. That sharp retreat, however, masks a year-to-date surge of around 83% — and a flurry of business developments that point to a company in mid-transformation.
On the heels of a refinancing that secured funding for the next generation of satellites, Eutelsat has been busy lining up new customers across very different geographies. In Madagascar, a deepened partnership with Airtel Madagascar is now using the OneWeb low-Earth-orbit constellation to deliver broadband to remote areas. Tests have clocked download speeds of up to 100 Mbit/s, even aboard moving trains, with latency dropping to around 70 milliseconds. The LEO satellites orbit at altitudes between 160 and 2,000 kilometres, making them far more responsive than traditional geostationary craft, and the system integrates seamlessly with existing 4G and fibre networks.
The Madagascar deal underscores the broader pivot from TV broadcasting to connectivity services that CEO Jean-François Fallacher has championed since the merger with OneWeb. Non-video revenue now accounts for roughly 54% of total sales, and the LEO connectivity segment grew 65% year-on-year in the most recent period. The traditional video business continues to contract under the weight of structural declines in linear television and regional sanctions.
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Yet the classic video remains a cash generator and a marketing tool. Eutelsat has sealed a high-profile contract with France’s M6 group, which will use the Fransat subsidiary to broadcast the 2026 football World Cup in Ultra-High-Definition. The signals will be beamed via the Eutelsat 5 West B satellite. The deal highlights that satellites still have a role in delivering bandwidth-heavy content to mass audiences, even as the company leans into connectivity.
Maritime connectivity is another growth frontier. Eutelsat has partnered with Tototheo Global to bring OneWeb’s LEO services to ships worldwide. Tototheo will distribute the services to maritime customers and also act as a key partner for government, military and enterprise clients in Greece and Cyprus. Eva Bisgaard, Eutelsat’s president for connectivity, described the arrangement as a step toward providing secure, low-latency broadband in specialised environments.
The financial picture supports the narrative of a company managing its transition carefully. Net debt stands at 2.7 times EBITDA, within the targeted range, and management has reaffirmed all financial goals for the current fiscal year 2025/26. The full-year results are due in August 2026, which will offer a clearer test of whether LEO growth can sustain the momentum.
For now, the stock is in a technical no-man’s land: the relative-strength index sits near the midline, while the share price is roughly 14% above its 50-day moving average. But with annualised volatility above 100%, the ride shows no sign of smoothing out. The 52-week low of €1.59 is a distant memory, yet the annual high of €4.62 set in May remains a long way off — and the market’s mood this week suggests investors are bracing for more turbulence ahead.
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