Street Calls of the Week
PARIS - Satellite communications provider Eutelsat (EURONEXT:ETL), currently valued at $1.92 billion with an impressive 80.56% gross margin, announced Tuesday that shareholders approved all resolutions during its General Meeting held on September 30. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 1.38, though it faces some financial challenges.
The meeting ratified the appointments of Michel Combes, Lucia Sinapi-Thomas, and Eric Labaye to the company’s Board of Directors. Shareholders also approved the appointments of Jean-Baptiste Massignon and Jérémie Gué as directors, subject to certain conditions being met.
In key financial decisions, shareholders authorized several capital increases without preferential subscription rights. These include issuances of ordinary shares to the French State for €137.7 million, Bharti Space Limited for €7.5 million, the UK Government for €22.5 million, CMA CGM Participations for €25 million, and Fonds Stratégique de Participations for €14.4 million. InvestingPro data reveals the company operates with significant debt, making these capital raises crucial for its financial strategy. Get access to detailed financial health metrics and 7 additional ProTips with an InvestingPro subscription.
The meeting also approved a delegation of authority to the Board to issue ordinary shares while maintaining shareholders’ preferential subscription rights, and authorized a share capital reduction by decreasing the nominal value of shares.
Eutelsat, which merged with OneWeb in 2023, operates a combined fleet of 34 geostationary satellites and over 600 low Earth orbit satellites. The company serves customers across video distribution and connectivity markets including mobile, fixed, and government services, generating annual revenue of $1.46 billion.
The company distributes approximately 6,400 television channels and employs more than 1,600 people across 75 countries. Eutelsat is listed on both the Euronext Paris Stock Exchange and the London Stock Exchange.
Complete voting results will be published on the company’s website according to regulatory requirements, according to the press release statement.
In other recent news, Britain has decided to invest €163 million, equivalent to $140.49 million, in Eutelsat, a French satellite operator. This move comes after France made a larger financial contribution to Eutelsat. The investments are aimed at enhancing Eutelsat’s competitive position in the satellite communications market, particularly against SpaceX’s Starlink. These developments indicate a significant commitment from both the British and French governments to support Eutelsat’s growth and technological advancements. The financial backing is expected to bolster Eutelsat’s capabilities in delivering satellite communication services.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.