Eutelsat will unveil its end-of-year numbers on July 31^st. A report from analysts at investment bank Exane/BNPP says it expects management to reaffirm its guidance of a return to slight revenue growth.

‘Slight revenue growth’ could be seen as good news. However there’s a sting in the comment, with the bank saying “but given the history of missed revenue expectations, we remain below guidance at -0.6 per cent group underlying revenue growth for FY/20. We expect Video revenue trends to improve from -2 per cent in FY/19(estimated) to -0.3 per cent in FY/20 (estimated).

The bank advises that it believes Eutelsat’s shares are also likely to be sensitive to any sign that the Konnect Africa broadband project may require additional marketing and distribution investment which may put EBITDA20e margin forecasts (Exane at 77.7 per cent, consensus at 78 per cent) under pressure.

“We continue to expect management to guide for a return to revenue growth in Fixed Broadband in FY/20 (Exane at +4 per cent, consensus +6 per cent) adds the bank’s note.

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