Eutelsat: Happy Valentine’s Day?
February 12, 2014
Satellite operator Eutelsat will unveil its H1 numbers on February 14th. While the operator’s numbers will be – as always – important, most analysts are anticipating more news and guidance on the January 30th announcement that Eutelsat had settled its long-running dispute with rival SES.
Berenberg Bank, for example, expects “considerable focus” on the longer-term guidance as to how this calendar year might evolve following the settlement. Another anticipated benefit for the operator is its recent acquisition of Mexico’s SatMex.
The impact of the two key elements means that Berenberg is expecting overall revenues for the half-year to grow from €634 million to €646 million. Looking at the full year (which for Eutelsat is June 30) Berenberg is upgrading its overall revenue expectations upward from €1,344 million to €1,359 million, and €1,505 million for 2015, and €1,618 million for 2016.
But the settlement with SES is complex, and analysts are looking for some greater detail on how the Transponder leases with SES will be priced and accounted for, and what the future impact will be on Eutelsat’s capital expenditure on new satellites.