Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Intelsat still suffering

It seems investor confidence in satellite operator Intelsat is evaporating. There has been a steady fall in the company’s Common stock share price, and Thursday (July 23rd) was no better with a fall of 3.34 per cent to an all-time historic low point of just $7.82.  A week ago it stood at $8.70.  On October 31st last year the stock was trading at $19.46 a share.

Intelsat will issue its latest quarterly financials next week on July 30th.

While the market has expressed some concern about future revenues and profitability at the company, there is nothing visible to create this lack of confidence. On July 14th investment bank Jefferies talked about Intelsat’s “Network Services” division and suggested that “headwinds” might start to re-build during Q2 (guidance is for a 7-10 per cent decline y-o-y). Jefferies is also concerned that digital compression in the “inherently more stable” media division could be starting to affect a growing number of Intelsat’s analogue services.

But neither of these comments would normally generate too much anxiety in a business that although heavily indebted is considered to be well managed, and still generating solid profit margins.

You must be logged in to post a comment Login