SES claims solid first half of 2020 but video challenges persist | Satellite | News | Rapid TV News
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In what it calls a performance in line with expectations and continued underlying growth, in particular with its Networks division, satellite operator SES has released half year 2020 results with underlying and reported revenues falling back compared with a year ago.
SES BBC Studios 8 July 2020 lands
For the six months ended 30 June 2020, SES reported revenues of €947.5 million, down 1.5% as reported with underlying revenue 2.4% lower than at the end of H1 2019. Adjusted EBITDA was €582.0 million, falling back 2.3% as reported on a yearly basis and slipping 3.5% at constant currency exchange compared with H1 2019 and representing an adjusted EBITDA margin of 61.4% including a 2.2% year-on-year reduction in recurring operating expenses.

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%.