Video service sales were flat year-on-year at €215.4 million, while fixed data sales dropped by 7.3% to €30.4 million and fixed broadband sales were down 5.3% to €19.1 million. Eutelsat’s top line was boosted by revenues from the sale of Eutelsat 25B.
CEO Rodolphe Belmer said that the quarter had seen a “return to growth’ in broadcast on a quarter-to-quarter basis. He said that the operator’s Konnect Africa broadband service was showing “positive indications of demand” but its ramp-up had been “significantly hindered by some short-term operational issues”.
Eutelsat is targeting a return to slight revenue growth for the fully year.
Financial analysts from Berenberg recently qualified Eutelsat’s stock as being undervalued despite a lack of growth potential, particularly in relation to its core video business
According to Berenberg’s analysts, Eutelsat has different “geographical and application exposure” than struggling peers Intelsat, and SES and its focus on cash-flow generation is “a key differentiator” for investors.