Street Calls of the Week
PARIS - Eutelsat Group (Euronext Paris / London Stock Exchange:ETL), a $1.83 billion market cap satellite operator with an impressive 80.56% gross profit margin, has signed a multi-year agreement with Tusass, Greenland’s national telecommunications provider, to deliver low Earth orbit (LEO) connectivity services across Greenland, according to a press release statement. InvestingPro data shows the company has demonstrated strong momentum with a 10.68% return over the past week.
The partnership will utilize Eutelsat’s OneWeb satellite network to provide communications services to remote areas of Greenland, supporting community broadband access, maritime operations, mobility services, and emergency response capabilities. With a current ratio of 1.38, InvestingPro analysis indicates the company maintains sufficient liquidity to support its operational expansion.
The OneWeb satellites operate in polar orbit, enabling coverage in high-latitude regions where terrestrial infrastructure is limited. This orbital configuration allows for low-latency, high-speed connectivity in Arctic conditions, addressing Greenland’s specific geographical challenges.
"Critical infrastructure has become a key focus area across Europe, and we are delighted to continue our work with Tusass," said Cyril Dujardin, President of the Connectivity Business Unit at Eutelsat.
Toke Binzer, Tusass Chief Executive Officer, noted that "Greenland presents one of the world’s most complex connectivity challenges," adding that the partnership would strengthen the company’s ability to meet the needs of Greenland’s people and institutions.
The agreement comes as Arctic nations increasingly prioritize digital resilience and sovereign connectivity capabilities. The deployment aims to support Tusass in achieving its strategic objectives for digital inclusion and infrastructure integration across Greenland’s territory.
Eutelsat, formed through the combination of Eutelsat and OneWeb in 2023, operates a fleet of 34 geostationary satellites and a LEO constellation of more than 600 satellites, serving customers in video distribution and connectivity markets. The company generates annual revenue of $1.46 billion and maintains a defensive beta of -0.22, indicating its stock often moves independently of broader market trends. For deeper insights into Eutelsat’s financial health and growth prospects, investors can access additional analysis on InvestingPro, which offers exclusive financial metrics and investment tools.
In other recent news, Eutelsat has seen significant developments that could impact its future operations. The company held a General Meeting where shareholders approved all resolutions, including the appointments of Michel Combes, Lucia Sinapi-Thomas, and Eric Labaye to the Board of Directors. Additionally, Jean-Baptiste Massignon and Jérémie Gué were appointed as directors, contingent upon certain conditions being met. In terms of financial backing, Eutelsat is set to receive a substantial investment from Britain, amounting to €163 million ($140.49 million). This move aligns with an earlier investment by France, aimed at bolstering Eutelsat’s position in the satellite communications market against competitors like SpaceX’s Starlink. These developments suggest a strategic effort by Eutelsat to strengthen its governance and financial resources.
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