Bank: No surprises expected in Eutelsat Q3
May 10, 2021
Eutelsat will report Q3 results after the market closes on May 11th.
Analysts are not expecting too many surprises and most of Eutelsat’s key revenue divisions will be in negative territory other than Fixed Broadband.
Investment bank Exane/BNPP, in a note to clients, says they expect group revenues from Eutelsat’s operating verticals to decline by 3.6 per cent to €300 million driven by an acceleration of the rate of decline in Video Broadcast to -5.7 percent and further pressure in Mobility. This is to be partially offset by a pick-up of growth in Fixed Broadband into double digit territory (the first time in 12 quarters).
“We are cautious into the numbers as we raise concerns the stock could derate on a deterioration in Video organic revenue growth trends at a time when SES’s are improving,” suggests Exane/BNPP.
“While the acceleration in the rate of Video revenue decline has been well flagged and is consensually expected, we still argue that a deterioration of the most cash generative part of the group could push investors to arbitrage away from Eutelsat to SES (+),” adds Exane/BNPP/