Eutelsat Group shares fell in early trading on Monday after the satellite operator lowered expectations following delays with the UK satellite internet company OneWeb.
In a statement, Eutelsat said while its legacy business was anticipating a return to growth following the launch of the Eutelsat 10B and Konnect VHTS, OneWeb was experiencing delays in the availability of its ground network and a revenue mix more oriented than expected towards the sale of user terminals, which impacts margins.
OneWeb currently has 30 of its required terminals in operation.
Eutelsat merged with the UK-based OneWeb earlier this year and the review of trading follows three months of trading.
Although the ground network is heading towards a 90% completion rate in Q2 2024, this is not sufficient to meet the satellite operator’s targets.
Shares dropped 16% to €3.45 before picking up to 3.50 at 12.00 CET. The level represents a halving of Eutelsat’s value over the last 12 months.
