Eutelsat’s upbeat results
Chris Forrester
18-05-2009

Eutelsat’s Q3 results last week were by any measure impressive. The market agreed, and Eutelsat’s share price has edged further upward to over €17. One investment bank, Morgan Stanley, in their latest note praises the company.

“Management struck a positive tone,” says the bank’s note, “emphasizing strong demand trends in video, especially in Eastern Europe and demand from the US government. Most of the growth came from incremental demand and higher pricing rather than new capacity. The backlog rose €300m to €3.8bn or 4 years of sales.”

The bank is impressed by all of Eutelsat’s divisions making their numbers. “Revenues + 5.6% to €236.5m, or 3.6% in constant [foreign exchange rates]. This was in line with our forecast of €237m. Each main division contributed (video +4.5%, data +6%) with very solid 38% in multi-usage.”

Morgan Stanley’s advice to investors is to stay “overweight” as far as Eutelsat’s stock is concerned.