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SES: 2013 guidance at risk

July 22, 2013

By Chris Forrester

One of the risks with any satellite operator is that its satellite launch timetable somehow or other goes pear-shaped. And Luxembourg-based SES is suffering a high degree of launch uncertainty just at the moment, and delays are not helping in its own revenue expectations.

Banker Morgan Stanley, for example, in a note to clients on July 19th – and timed ahead of SES’ results coming out on July 26th – says SES’ 2013 guidance is “at risk”. “We believe a combination of three factors could lead SES to miss its three-year guidance and hit, at best, the low end of its FY13 guidance: (i) launch delays (SES 8 and Astra 2E); (ii) the slow ramp-up of some recent launches (SES 4 and SES 5); and (iii) higher margin dilution coming from the growth of low-margin HD+, coupled with slower growth in the more highly operationally geared infrastructure business.”

The bank says it expects SES to trim its guidance this Friday when it reports its H1 numbers.

Categories: Articles, Business, DTH/Satellite, Results