Yet the performance of the two core SES business lines showed explicitly the contrasting underlying trends and drivers for the satellite industry. Video underlying revenue was €559.3 million, an 8.0% fall at constant currency exchange, reflecting said SES the combination of lower revenue from Distribution, falling 7.4% compared with the previous year.
This said the company was a result of ‘right-sizing’ of capacity by customers in mature markets, and the decision to reduce exposure to low margin video services activities contributing to lower Services revenue. The latter dropped by 9.6%. Nevertheless, SES said utilisation rates across industry-leading European Video neighbourhoods remained strong.
Video now accounted for 59% of company business, down four percentage points compared with a year earlier. As of 30 June 2020, SES carried a total of 8,302 TV channels to viewers around the world including 2,948 channels in high definition and Ultra HD, up 2% year-on-year. Just over two-thirds of total TV channels are now broadcast by SES in MPEG-4 with an additional 4% in HEVC.
By contrast, the company’s Networks division showed underlying revenue growth for the third consecutive year. This was 7.1% for the first half of 2020 at constant FX to €379.4 million with double-digit growth in Mobility, 22.6%, and a return to growth in Fixed Data, up 4.6%.