A negative report from ratings agency Moody’s cannot have helped, but January 29th saw Eutelsat shares drop in value to an all time low of €1.805 per share.
January 30th was no better with another fall to €1.79. The falls give the Paris-based satellite operator a market capitalization of just $850 million. Its actual enterprise value would be much higher.
In July 2024, Eutelsat’s shares reached €4.90, and back in October 2021 they were trading at more than €12 per share. Back in 2o15 their value regularly topped €30 per share.
Shareholder confidence, certainly amongst smaller investors, seems to have evaporated.
In July 2022 CEO Eva Berneke announced the suspension of annual dividend payments for a period of two years. The decision was made in order for Eutelsat to fund its ‘merger’ with UK-based OneWeb. The announcement caused an immediate 17 per cent fall in share value, followed on the next day by a further 15 per cent decline.
That two year suspension period is due to end this year, but investors suspect that the ‘no dividend’ period will extend for another period.
e49u
