The factors in favour of a rise in the Eutelsat share price:
Firstly, it should be remembered that the Eutelsat Group has a very interesting position in its sector of activity. It is currently the European leader in the satellite industry, with a market share of 30% in this geographical area, including Central Europe. In addition, it holds no less than 66% of the market share in video applications and 20% of the market share in data services.
Another important strength of this company is that its activities are largely based on long-term contracts covering periods of 10 to 15 years, which is the average life of a satellite. Thus, investors and shareholders appreciate the good visibility that these contracts offer on the Group's order book.
While the Eutelsat Group started out in the video sector, which still generates nearly 65% of its revenues, it has also implemented a strategy of diversifying its activities that is both intelligent and reassuring. In particular, the group has developed very well in buoyant sectors such as data, the government segment and broadband. This diversification significantly reduces the risk of exposure to a single sector of activity.
Eutelsat has also succeeded in gaining the trust of its customers, notably television groups that have been loyal to it for many years. This loyalty is also due to the significant cost of redirecting the satellite dishes of these groups' customers to a new position in orbit. Thus, the customers acquired by the group should not turn to the competition for economic reasons.
We will also appreciate the significant drop in the price of launchers in recent years as well as the significant growth of SpaceX in launchers and satellites that have a longer life and are therefore more profitable.
Eutelsat has also significantly strengthened its position in the broadband sector in Europe through its joint venture with the US company ViaSat, which is responsible for the sale of wholesale services and the provision of access to European consumers.
Finally, shareholders and investors interested in this stock also appreciate the group's policy of investing in emerging countries, particularly in Africa and Latin America, as well as the payout ratio, which offers a payout of around 65 to 75%.