Eutelsat reported a 17.8% like-for-like decline in video revenues for the first quarter of its 2026–27 financial year, highlighting continued pressure on its traditional satellite broadcasting business as customers reduce capacity requirements and contracts expire.
Video revenue fell to €110 million in the three months, compared with the corresponding period a year earlier. Group revenue reached €286 million, representing a 2.4% decline on a reported basis. Video continues to account for approximately 40% of Eutelsat’s business, making the sustained contraction an important factor in the group’s wider revenue performance.
The operator attributed the decline primarily to two developments: customers renewing satellite capacity at lower volumes as they optimise their requirements, and the expiry of capacity contracts on two Russian Express satellites. The company’s video backlog stood at €1.2 billion, slightly below its position at 30 June 2026.
Eutelsat expects the pace of decline in video revenues to ease, although the latest figures underline the structural pressures facing satellite television distribution. Broadcasters and channel operators are increasingly reviewing their transmission requirements, seeking efficiencies in capacity use and adapting distribution strategies to changing delivery technologies.
The performance of Eutelsat’s connectivity business provides a contrast. Low Earth orbit (LEO) revenues increased by 30.1% on a like-for-like basis to €70.9 million, reflecting the growing contribution of satellite-based connectivity services to the group’s business as demand for traditional video capacity weakens.
For African broadcasting markets, the implications are worth watching. Eutelsat remains an important satellite distribution provider for channel feeds reaching North Africa and parts of sub-Saharan Africa. If broadcasters and channel operators continue renewing capacity at lower volumes, the trend could reflect wider efforts to consolidate feeds, adopt more efficient video encoding and shift some distribution activity towards fibre and IP-based infrastructure.
A sustained reduction in demand for video capacity could also place downward pressure on transponder pricing over time, potentially creating more favourable purchasing conditions for broadcasters that continue to rely on satellite distribution. However, this remains an industry implication rather than a development identified by Eutelsat in its latest results.
The company’s reported explanations centre on customer capacity optimisation and the expiry of Russian satellite contracts. Its results do not specifically identify African market demand as a factor in the decline. Nevertheless, the figures offer a relevant indicator for African broadcasters assessing the cost, resilience and long-term role of satellite transmission within increasingly hybrid distribution strategies.
