Eutelsat - comment

Bonds should not move much this morning. We had already been asking about the timing of the French defence ramp-up on the last call. The early announcement had led us to believe operations would commence sooner. Management then said it would finally commence in the 4th quarter of this financial year (to June 30th). With 15 days to go, Eutelsat has published the immediate commencement of operations under a contract worth up to €350m over eight years within the context of the €1bn Nexus framework. It’s significantly positive news, but effectively already priced in, if not a little late by those expectations.