Eutelsat hammered by profits warning
October 31, 2019
By Chris Forrester
Eutelsat’s poor Q1 trading numbers announced after the close of the market on October 30th and a downward revision to its expected revenues over the next nine months resulted in a severe fall in its stock market share price in early trading October 31st.
Eutelsat’s share price tumbled 11.83 per cent (€2.19) to €16.29 (and at one point €16.13) as the shares fell off a cliff as the Paris Bourse opened.
CEO Rodolphe Belmer told analysts: “Despite our expectation that the revenues profile for the current year will be back-end loaded, the outturn of Q1 is slightly below our expectations, notably due to worsening trends in Data & Professional Video and the unplanned return of a couple of transponders in Russia. On the other hand, the coming quarters will benefit from easing comps in Government Services and Data & Professional Video, the contribution of new capacity and the ramp-up of African Broadband”.
The market now feels that Eutelsat will be lucky to finish its trading year next June with extremely modest growth, if at all.