(Adds detail, background)
May 14 (Reuters) - French satellite company Eutelsat cut its full-year operating revenue forecast on Tuesday, saying it now expected a decline of about 3 percent compared with a “broadly stable” outcome previously.
The company blamed a number of factors including “temporary operational issues” delaying the ramp-up of its Konnect Africa initiative; softer conditions in fixed data and professional video markets; and the slower than expected emergence of some contracts in its video pipeline.
It also reported a 3 percent drop in nine-month revenue from operating activities.
The cut to Eutelsat’s full-year forecast is the latest in a series of downgrades.
“2019 is not quite the tipping point for growth Eutelsat was expecting,” Morgan Stanley analysts said, describing the cut as “disappointing”.
Eutelsat confirmed all other financial objectives for the current and following years, including a return to slight topline growth in 2019-2020.
The group’s third-quarter total revenue rose 0.7 percent to 337 million euros ($378 million),
$1 = 0.8924 euros Reporting by Zuzanna Szymanska in Gdynia; Editing by David Goodman and Mark Potter