Satellite, cinema operators boosted by vaccine news
November 11, 2020
By Chris Forrester
Europe’s two big names in satellite communications saw large uplifts to their share prices thanks to the news about a probable Covid-19 vaccine.
Eutelsat rose a significant 9.56 per cent on November 10th (and at one point hit €9.70). SES rose 3.9 per cent to €7.99 (and at one point touched €8.12) per share.
The vaccine news was welcome because both companies have significant capacity sold to in-flight customers and the two operators’ maritime businesses include cruise ships whether in the Mediterranean or the Caribbean.
Airlines accept that a pre-Covid level of business might be some time coming, while the cruise industry sees 2022 as a return to – for them – normality.
Either way, the vaccine news has come at the right time. A guide to the losses came from in-flight specialist Gogo which reported its latest financials on November 9th. Gogo said that its Q3 revenues were down 61 per cent on the same period last year, but already up 34 per cent on the Q2 – and catastrophic lock-downs – earlier in the year.
Meanwhile, cinema chain Cineworld – which has had a disastrous year as a result of the pandemic, and currently has all its cinemas shuttered around the world – has seen its share price jump by 70 per cent, also on the back of the vaccine news.