Satellite operator SES will issue its Q2 and half-year numbers on August 7th and a note to clients from investment bank Exane/BNPP warns that the impact of Covid-19 is likely to impact the operator, especially its Mobility division.

The bank says that expectations of the operator’s Mobility revenues amongst observing banks is extremely wide, ranging from €25 million to €57 million. Exane’s forecast is for a 25 percent fall (y-o-y) at €37 million.

The bank uses Eutelsat’s recent numbers as a guide which fell 21 percent in its Mobility market despite market share gains in Eutelsat’s Maritime division.

“While we see Government flat and Fixed Data up 4 per cent on strong volume trends (as reported at Eutelsat), the pressure in Mobility is likely to result in SES Networks Q2 revenues to be down 6 per cent at €169 million (vs. consensus at €178 million),” says Exane/BNPP.

The report adds: “We [expect to] see SES Video to prove resilient with revenues of €273 million (consensus at €275 million). We expect group EBITDA of €244 million (including a €15 million restructuring provision) on 54.8 per cent EBITDA margins. Consensus stands at €254 million.”

SES’ share price has been extraordinarily volatile these past weeks, although it has to be said mostly moving downward and not up (€13 in February, and now barely €6 per share and in April at just €5.10).

The bank sums up the position saying: “For several years now, SES quarterly publications have been a source of share price volatility. This history coupled to the lack of visibility on the impact of Covid 19 on SES Networks leads us to be cautious ahead of numbers.”

Other posts by Chris Forrester:

1. Virgin Galactic in stock split
2. Thuraya-3 suffers major problem
3. AST SpaceMobile hit by Class Action
4. Optimism under threat at SES
5. Rivada visits Terran Orbital’s manufacturing HQ
6. Avanti wins spectrum debt obligation case
7. SpaceX breaks records for re-use launchers
8. IRIS2 already in trouble?
9. Intelsat contemplates next steps

Categories: Blogs, Business, Inside Satellite, Results

Tags: Exane/BNPP, SES