SES sees revenues and profits slide, but video business grows

Satellite operator SES saw its revenues and profits decline in the first half, as the company maintained that it was establishing the foundations for sustainable growth in the future despite “changing market dynamics” and “short-term headwinds” in the enterprise segment.

SES’s first half revenues fell by 4.2%, or 4.8% at constant exchange rates, to €956.8 million, while EBITDA dropped by 5.4%, or 5.8% at constant exchange rates, to €699.8 million. Net profit was €227.3 million, down from €275.4 million.

Video revenue grew by 0.8%, or 0.3% at constant exchange to €665.7 million, with the number of HDTV channels up 12.1% to 2,442. HD channels now account for a third of the total channels on the fleet.

SES said that it now counted 16 commercial UHD TV channels broadcasting across Europe and North America.

The number of TV channels in emerging markets grew by 11.1% to 2,850. It said its technical reach in  Ghana, where it has a deal with K-Net had grown by 18% since 2014 to two million homes.

Enterprise revenue dropped by 16.3% at constant exchange rates, which the company attributed to the impact of a strong US dollar on small and medium-sized capacity resellers.

Government revenue dropped by 15.2% at constant exchange rates, thanks in part a large sale in the prior period.

Mobility revenue increased sharply by 49.8% from a small base to €44.5 million.

SES said that revenue for its O3b Networks acquisition is expected to double this year to US$100 million, with a growing contract backlog.