March 2, 2020 / 8:03 AM / a month ago

CORRECTED-SES cuts 2020 outlook, weighs separate networks business

(Clarifies SES plans in 2nd paragraph, corrects description in 3rd paragraph)

March 2 (Reuters) - Satellite operator SES cut its core profit and revenue forecasts for 2020 on Monday, projecting a slowdown for the video division and a slower pickup in its networks business.

The Luxembourg-based company said it would halve dividends year-on-year and announced the next phase of strategic transformation, which could include potential separation of its networks business within the company and EBITDA optimisation of 40-50 million euros ($44.16 million-$55.21 million) annually from 2021 onwards.

SES, which enables telecoms operators to provide Wi-Fi services for aircraft and ships, now expects its 2020 earnings before interest, taxation, depreciation and amortisation (EBITDA) to come within a range of 1.15 billion euros to 1.21 billion euros, and revenue between 1.92 billion euros and 2.00 billion euros.

Previously, the company had expected its 2020 EBITDA to come within the range of 1.26 billion euros to 1.34 billion euros, and revenue between 2.06 billion euros and 2.16 billion euros.

The forecasts exclude any impact from the C-Band, a block of spectrum used to deliver video and radio programming to 120 million U.S. households, and it is seen as the most likely short-term source of available spectrum for 5G use. ($1 = 0.9057 euros)

Reporting by Pawel Goraj; Editing by Subhranshu Sahu

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