Advanced Television

Eutelsat favourable forecasts

January 15, 2014

By Chris Forrester

eutelsat_logoJust before the holiday, Paris-based satellite operator Eutelsat wrapped up its €834 million purchase of Mexico’s Satmex fleet of satellites. The deal means that this year’s income – and likely profit – for Eutelsat is completely changed.

One bank, Kepler Cheuvreux, has taken a close look at Eutelsat’s prospects given that Satmex’s revenues are now rolled into Eutelsat with effect from January 1st. The Satmex deal guarantees an extra 9 per cent growth for Eutelsat, and a foot in the door in what is already a fast-growing region.

One option open to Eutelsat, suggests the bank, is that it will sell its stake in (what is now an arch-rival) Hispasat. This could generate at least €300 million, states the bank.

Kepler Cheuvreux states that most of the bad news on Eutelsat has already been reflected in Eutelsat’s stock price (typically around €22) and instead gives a target price of €27.

Categories: Articles, Business, DTH/Satellite