*

Eutelsat posts full year revenues above estimates

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Services in Ukraine and government demand drive growth

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CEO says Eutelsat will not compete with Starlink, Amazon ( AMZN )

in

consumer markets

(Adds CEO quotes from media call, share move, rewrites

throughout)

By Gianluca Lo Nostro

Aug 5 (Reuters) - French satellite operator Eutelsat

reported better-than-expected annual earnings on

Tuesday, driven by growing interest in its satellite internet

services from government and corporate customers.

Eutelsat gained the spotlight this year as European

governments sought home-grown solutions for satellite services,

aiming to reduce their reliance on U.S. providers, such as Elon

Musk's Starlink.

Revenues from video, connectivity and government services

reached 1.23 billion euros ($1.43 billion) in the year ended

June 30, up 0.8% from a year earlier.

Financial analysts had expected those revenues to total 1.21

billion euros, according to a consensus poll provided by

Eutelsat.

The Paris-based group hopes to offset declining income

from its video business by gaining a foothold in the satellite

internet market, where Elon Musk's Starlink dominates.

However, CEO Jean-François Fallacher told reporters the

company "won't compete head-to-head with Starlink or Amazon's ( AMZN )

Kuiper in consumer markets," focusing instead on segments that

make it competitive.

Besides government services, these areas include

in-flight connectivity and maritime services, Fallacher said.

Eutelsat said revenues from its low Earth orbit (LEO)

satellites rose 84.1% yearly to 187 million euros.

Higher revenues for government services reflected services

delivered in Ukraine and increased demand from other non-U.S.

governments, particulary Taiwan, Fallacher said.

The German government has been paying for Ukraine's access

to Eutelsat's network for about a year.

Eutelsat expects LEO revenues to grow by 50% next year,

saying it will compensate, but not yet outweigh the decline in

its legacy business, which are impacted by additional Russian

sanctions.

However, the operator said it took a 1.1 billion euro loss

through the year, partly due to impairments from its

geostationary (GEO) assets.

In addition to its 34 GEO satellites - mostly used for

broadcasting and fixed satellite internet - Eutelsat owns a

constellation of over 600 in low Earth orbit, managed by its

London-based subsidiary OneWeb, which was acquired in 2023.

The company is undergoing a radical shake-up following the

appointment of a new CEO and a chairman as well as new

injections of capital led by the French state alongside Britain

and other anchor shareholders for 1.5 billion euros.

Eutelsat's shares were up 1.2% at 0747 GMT. The stock

had climbed 30% this year as of Tuesday's closing price.

($1 = 0.8643 euros)