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How Eutelsat’s Renewed Cinecolor Latin America Cinema Deal (ENXTPA:ETL) Has Changed Its Investment Story

Simply Wall St · 2d ago
  • In November 2025, Eutelsat announced it had renewed its long-standing multi-year partnership with Cinecolor Group, keeping the EUTELSAT 65 West A satellite at the core of feature film and live event distribution to hundreds of cinemas across Latin America via C-band capacity.
  • This renewal reinforces Eutelsat’s role in the region’s digital cinema ecosystem, underlining the resilience of satellite-based workflows for secure, high-quality content delivery from Mexico to Brazil.
  • We’ll now explore how this renewed Cinecolor agreement, which underpins Eutelsat’s Latin American cinema distribution network, may influence its investment narrative.

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Eutelsat Communications Investment Narrative Recap

To own Eutelsat, you need to believe its pivot from pressured GEO video services toward higher growth connectivity and LEO opportunities can eventually offset current losses and balance sheet strain. The renewed Cinecolor deal helps stabilize a niche GEO revenue stream in Latin America, but it does not materially change the short term focus on funding LEO expansion or the key risk around ongoing GEO revenue erosion and high net debt.

The recent €716 million private placement, alongside the planned €500 million proceeds from selling a majority stake in passive ground infrastructure, is more immediately relevant for the Cinecolor news. Together, they highlight how Eutelsat is trying to fund its LEO build out while still monetizing GEO assets like EUTELSAT 65 West A, which remain important for cash generation and for managing the risk that GEO impairments and backlog erosion continue.

Yet behind this renewed cinema contract, investors should be aware of...

Read the full narrative on Eutelsat Communications (it's free!)

Eutelsat Communications' narrative projects €1.3 billion revenue and €90.7 million earnings by 2028. This requires 2.7% yearly revenue growth and about a €1.2 billion earnings increase from €-1.1 billion today.

Uncover how Eutelsat Communications' forecasts yield a €2.97 fair value, a 40% upside to its current price.

Exploring Other Perspectives

ENXTPA:ETL Community Fair Values as at Dec 2025
ENXTPA:ETL Community Fair Values as at Dec 2025

Thirteen Simply Wall St Community fair value estimates for Eutelsat range from €2.71 to €16.19, underlining very different views on upside. You should weigh these opinions against the pressure on GEO revenues and backlog, which could influence how long the shift toward LEO-supported growth might take.

Explore 13 other fair value estimates on Eutelsat Communications - why the stock might be worth over 7x more than the current price!

Build Your Own Eutelsat Communications Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.