Bank: Eutelsat expected to report Q1 decline
October 7, 2020
Eutelsat will report its first quarter-year revenues on October 29th. Investment bank Exane/BNPP is telling its clients what to expect.
Analysts at Exane/BNPP suggest that Eutelsat will declare €304 million of group revenues for the quarter-year (including €301 million from its so-called Operating Vertical divisions) and which will be driven by a 3 per cent like-for-like decline. The bank warns that currency fluctuations are not helping with $/€ movements likely to “knock off another €6.5 million before FX hedging benefits”.
The bank sees Eutelsat’s important Video Broadcast and Government verticals falling back by -1 per cent.
“We expect management to flag the successful contract renewal outcome from Sky Italia as underpinning the pricing power the company has in Video Broadcast,” adds the bank.
“We see Fixed Broadband at down -5.5 per cent (on the back of positive net adds in Q4 20), Fixed Data and Professional Video also falling back at -6 per cent (benefiting from recent volume gains). We expect Mobility to be down 23 per cent on Covid-19. Overall, we believe this to be consistent with consensus revenue forecasts.”
Other posts by Chris Forrester:
- Virgin Orbit raises $10m in emergency funding
- African Space Agency created
- SES vs Intelsat back in court
- UK Spaceports determined to succeed
- Airbus flies high with Zephyr HAPS
- Bank: Australia linear TV “shows weakness”
- Intelsat left SES “on the hook” for C-band costs
- Bank: Viaplay de-risked for Q4
- Bank: “Video Games will rebound in 2023”