Market responds as SES rockets ahead

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SES enjoyed a very pleasant 6 per cent rise in its share price to €14.40 (and at one stage €14.52) as the market responded to the operator’s half-year numbers.

The market was reassured by (CEO) Steve Collar’s full-year outlook with guidance supplied that the addition of SES-12 and its new Video revenues and Network business flowing from the expanded O3b fleet.

Sami Kassab, an analyst at Exane/BNPP said in a note to clients that inevitably there were many questions during the analysts tele-conference on the likely impact and current situation on the proposed C-Band restructuring “but we found no meaningful additional information disclosed. SES management remains optimistic the FCC will take a favourable decision by year end. Our views are unchanged.”

“Management has reaffirmed its revenue and EBITDA guidance and unlike in H1/18 did not point to video revenues coming at the lower end of the range. SES Networks revenue growth is expected to accelerate in Q3 and further in Q4. SES Video revenues trends are seen improving from Q4. However, management did not provide enough details to fully assuage concerns on Video revenues missing guidance, in our view,” added the bank’s note.

“With operating trends de-risked (until Q3 19 due 25th of October), we expect investors to take position to gain exposure to the C-band newsflow expected by year end. We remain Outperform,” concluded the bank.


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