(Boursier.com) — Eutelsat drops 2.4% to 6.2 euros after a publication without much surprise and the maintenance of its annual objectives. The satellite operator reported total third-quarter revenue of 272 million euros, down 5.2% on a reported basis and 7.5% on a like-for-like basis. A level in line with analysts’ expectations. The group confirmed its financial targets for the 2022/23 financial year and beyond, including an annual adjusted discretionary free cash flow of 420 million euros.
It expects its revenue to accelerate in the second half of 2023, particularly in mobility applications, with the entry into service of new in-orbit assets, which should support a return to growth in fiscal year 2023 /24.
For Citi, investors are unlikely to be encouraged to revisit the stock with these results online, with the merger with OneWeb still attracting negative sentiment. While low growth was expected, Bryan Garnier (‘sell’) thinks core business margins (excluding OneWeb) could be under pressure in the coming quarters due to the ramp-up of connectivity distribution
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