SES also fights back on “overblown” anxieties
May 19, 2016
SES was also badly affected by last week’s market anxieties over Eutelsat. While Eutelsat’s share price crashed some 30 per cent, SES was also impacted by the general depression revolving around satellite’s future prospects, and in particular the risk of over-capacity.
SES’s CEO Karim Michel Sabbagh, in an interview with the Wall Street Journal, stressed that SES has no intention of scaling back its investments in new satellites.
“Not all capacity is equal,” he told the WSJ, and reminded the market that while some operators were facing declines in demand, SES grew its video revenues 5 per cent in the most recent quarter-year, and that SES continues to see strong opportunities in emerging markets. He specifically mentioned a partnership agreement with Indonesia’s Telkom which will see capacity used on the recently launched SES-9 craft.
Sabbagh said he was “mindful” of market sentiment and is currently on a financial roadshow talking to the investment community about the operator’s plans, which includes taking a controlling stake in the O3b satellite constellation.