Bank urges SES to buy back shares
July 13, 2023

Investment bank Berenberg, in a report to clients on the likely financials from satellite operator SES due on August 3rd, is urging SES to announce a buyback of shares.
SES is due to receive about $3 billion (less 18-19 per cent tax) at the end of the year as its compensation from the FCC for freeing up certain C-band frequencies.
The bank says: “[SES] has previously said that it will consider shareholder returns, balance sheet repair and disciplined investment. Given that the C-band programme is now largely de-risked, we think that SES should announce a buyback. We do not believe SES has to fully detail how it will use the entirety of the C-band proceeds, but announcing a buyback would send a signal of confidence.”
The bank adds that the merger talks with Intelsat may have previously prohibited any such announcement, given the board’s possession of material non-public information; however, following SES’s announcement on June 22nd that merger talks had ceased, the bank would like to see SES go ahead and announce a buyback at the Q2 results.
Berenberg expects Video revenues to continue to decline and says Q2’s Video income will fall by 6 per cent. The high spot for the bank is SES Mobility which is forecasts will grow by 11 per cent.
The bank maintains its ‘BUY’ recommendation to clients and with a share price target of €8.70 (share price currently at about €5.58).
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