Eutelsat Lowers Forecast on Reduced DoD Spending, Heightened Competition in Africa

摘要

Satellite fleet operator Eutelsat on May 7 cut its expected rate of growth in the coming three years because of heightened competition in Africa from fiber lines and new satellite operators, and reduced U.S. Department of Defense (DoD) spending on commercial bandwidth. Average annual revenue growth between 2012 and 2015 will be 5-6 percent, down from the 6-7 percent the Paris-based operator had previously forecast. In a May 7 conference call with investors, Eutelsat officials said the seven satellites the company expects to launch between 2013 and 2015 should ultimately accelerate revenue growth, especially in the Middle East, North Africa and Russia. The dip in Africa is temporary, they said, and the company is redirecting its commercial effort in the region toward corporate networks and mobile applications, both of which are expected to grow even as point-to-point communications migrate to competing providers.