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Satellite firm SES raises sights for 2021 on strong HD demand
By Sarah Morland and Anait Miridzhanian
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Aug 4 (Reuters) - SES beat half-year core earnings and revenue expectations on Wednesday, prompting the satellite company to bump up its guidance and sending its shares as much as 7% higher.
Its Paris-listed shares were among the best performers on the pan-European STOXX 600 index, with analysts praising a "solid" set of results.
"We're seeing more and more channels being transmitted in high-definition, which really speaks to the strength of satellite," chief executive Steve Collar told reporters, predicting a flattening decline in revenues from the firm's core video business.
Revenues from SES' video business, which beams TV channels such as Sky, Canal+, ARD, and NBC to households, fell almost 4% - less than expected - as sports and event broadcasting recovered following delays and cancellations caused by the coronavirus pandemic.
Satellite operators have struggled during the pandemic as major broadcasting events were delayed or called off and streaming platforms such as Netflix grew their following.
Supply chain disruptions also pushed back new satellite launches.
Sales at the Luxembourg-based group's smaller networks division also fell slightly, in line with expectations, as pandemic-related travel curbs continued to stunt demand for connectivity on commercial planes and cruise lines.
SES, one of the world's biggest commercial satellite operators, фильмы онлайн now expects core earnings of between 1.08 billion euros and 1.10 billion euros ($1.28 billion-$1.31 billion) this year, excluding expenses linked to restructuring and its clearing of U.S.
C-Band spectrum.
This compares with the previous forecast of 1.06 billion-1.10 billion euros.
The group's total sales fell 3% in the first six months of 2021, bringing its adjusted earnings before interest,tax, depreciation and amortisation (EBITDA) down to 544 million euros from 582 million euros a year earlier, still above analysts' average estimate of 530.6 million euros.
($1 = 0.8424 euros) (Reporting by Sarah Morland and Anait Miridzhanian in Gdansk; Editing by Ramakrishnan M., Subhranshu Sahu and Tomasz Janowski)
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