Under normal circumstances, sudden departures of senior executives are often frowned upon. However, not in this case: Eutelsat shares jumped over 10% and returned to its recent volatility. As a reminder, investors rediscovered the stock two months ago when it became apparent that the company could offer a European alternative to Elon Musk's Starlink. The share price rose from $1.20 to $9 in a matter of days, before losing half of its gains in recent weeks.
The OneWeb gamble could pay off
The transition at the helm of Eutelsat comes at a time of increased financial needs for the operator, which recently stated that it would need up to €2.2bn to finance the deployment of its satellites. The group is thus seeking to align itself more closely with the telecommunications ecosystem, in its own words: "This appointment is a natural evolution, fully aligning Eutelsat with the telecom ecosystem."
Under the leadership of Eva Berneke, who has been in office for two years, Eutelsat notably led the merger with the British company OneWeb in 2023, consolidating its position in the field of low-orbit satellite constellations (LEO). This strategic move has enabled Eutelsat to control the only operational LEO constellation outside of Starlink, owned by Elon Musk.
This merger has revived interest in European satellite connectivity capabilities, particularly in the context of the war in Ukraine. In March, speculation about Eutelsat's potential role in replacing Starlink to provide internet access to the country led to the biggest weekly rise ever recorded by the stock. The company has confirmed that it has been providing high-speed satellite internet service to Ukraine for the past year through a German distributor.
Not holding a grudge, Eva Berneke welcomed Eutelsat's future alignment with a Europe that is "a sovereign space player and firmly integrated into the connectivity ecosystem" in a message posted on LinkedIn. She also mentioned ongoing adjustments to the group's governance and shareholding structure, without providing further details.
The OneWeb gamble remains to be financed
According to a source close to the matter, the company is facing significant investment needs that could require a capital increase. Eutelsat had previously estimated that its merger with OneWeb would bring its annual revenue to $2bn by 2027, with a new generation of LEO satellites expected by the end of the decade. However, the company now plans to build three times more satellites than previously anticipated, significantly increasing the cost.
