Financial Results and New Strategies for European Satellite Companies Eutelsat and SES

Introduction

Eutelsat and SES have published their latest quarterly financial reports, showing a clear strategic move toward multi-orbit connectivity and government-funded infrastructure.

Main Body

Eutelsat's third-quarter performance matched market expectations, though it showed a clear split between old and new services. The company reported a 65 percent increase in revenue from low Earth orbit (LEO) services. This growth helped to balance a 13.3 percent drop in video revenue, which was caused by the end of several contracts and sanctions against Russian companies. This change follows the 2023 purchase of OneWeb for 3.4 billion dollars, a move designed to make the firm a strong European competitor to Starlink. Furthermore, the company continues to receive strong institutional support, including a 5-billion-euro government refinancing package and a ten-year contract with the French military. At the same time, SES reported first-quarter revenues of 847 million euros, which is an 80 percent increase when currency rates remain constant. The company emphasized that its growth is mainly driven by the expansion of its aviation business and European infrastructure projects. For example, SES has provided connectivity for over 40 Japan Airlines long-haul planes and is working with Boeing to make multi-orbit systems a standard feature in new aircraft. Additionally, SES has extended its agreement with the European Union Agency for the Space Programme until 2030 and is currently discussing the IRIS² programme with the European Commission to define the technical and financial details for secure space connectivity.

Conclusion

Both operators are now focusing on high-capacity connectivity and government contracts to replace falling broadcast revenues and compete in the LEO market.

Learning

🚀 The 'B2 Leap': Moving from Basic to Dynamic Descriptions

An A2 student describes the world using simple verbs: "The company grew," or "The money went down." To reach B2, you must stop using basic verbs and start using 'Precision Verbs' and 'Balance Phrases.'

⚖️ The Art of Balancing (The 'Though' Technique)

In the text, we see a sophisticated way of connecting two opposite ideas:

*"...matched market expectations, though it showed a clear split..."

Why this is B2: Instead of using two short sentences with 'But', a B2 speaker uses 'though' or 'although' to create a complex sentence. This shows the listener that you can weigh two different facts at the same time.

📈 Dynamic Vocabulary: Stop saying 'Increase' and 'Decrease'

Look at how the article describes money. It doesn't just say "more" or "less." It uses professional movements:

  • "To balance a drop" \rightarrow When one thing goes down, another goes up to keep the total stable. (A2: One is bad, one is good).
  • "Driven by" \rightarrow This means "caused by" or "powered by." It suggests a strong force. (A2: Because of).
  • "Designed to make" \rightarrow This shows purpose and intention. (A2: They want to be).

🛠️ Practical Application: The 'Upgrade' Map

Transform your A2 thinking into B2 phrasing using these logic shifts found in the text:

A2 Thinking (Basic)B2 Phrasing (Professional)Context from Text
It is because of...It is mainly driven by......growth is mainly driven by aviation...
It is for...It is designed to......a move designed to make the firm a competitor...
But it had...though it showed......matched expectations, though it showed a split...
They are talking...They are discussing... to define......discussing the IRIS² programme to define details...

Vocabulary Learning

strategic (adj.)
relating to the planning of future actions to achieve a long‑term goal
Example:The company’s strategic decision to merge with a rival helped it gain market share.
connectivity (n.)
the state of being connected; a link or network that allows communication
Example:High‑speed connectivity between satellites ensures reliable internet for remote areas.
infrastructure (n.)
basic physical systems and structures needed for a society or organization
Example:The government invested in new infrastructure to support the growing tech industry.
performance (n.)
how well something works or operates
Example:The satellite’s performance exceeded the expectations set by analysts.
expectations (n.)
beliefs about what will happen in the future
Example:Investors had high expectations for the company’s quarterly earnings.
revenue (n.)
income received, especially from business activities
Example:The firm reported a 65 percent increase in revenue from LEO services.
growth (n.)
increase in size, amount, or importance
Example:The company’s growth has been driven by expanding its aviation business.
contracts (n.)
formal agreements between parties
Example:The end of several contracts led to a drop in video revenue.
sanctions (n.)
penalties or restrictions imposed by governments
Example:Sanctions against Russian companies affected the satellite industry.
competitor (n.)
a person or organization competing for the same goal
Example:Eutelsat aims to become a strong European competitor to Starlink.