Satellite operator Eutelsat trimmed its full-year revenue outlook due to the Covid-19 crisis. Its operating verticals are now expected to generate EUR 1.25 billion in FY 2019/2020, representing a drop of at least EUR 20 million from previous guidance (EUR 1.27-1.32 billion).
CEO Rodolphe Belmer commented that the company's activities remained resilient, particularly its core Broadcast business. He noted, however, that three segments were feeling the effects of the current lockdown measures, namely Mobility, Professional Video and, to a lesser extent, Fixed Broadband. This negative impact is likely to continue beyond the current FY ending June into at least the beginning of FY 2020-21.
The operator has decided to suspend its discretionary free cash flow target of EUR 500 million, set for FY 2021-22. It will also propose a dividend cut of 30 percent for the current year (2019-20), which will be put forward at the AGM in November.
Operationally, some activities are being affected by supply chain delays. The company said that the launch of its Quantum satellite, scheduled for Q3 2020-21, will probably be postponed, and that the pace of deployment of ground gateways supporting Eutelsat Konnect is likely to slow down.
