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SES earnings miss forecasts, pushing shares to 8-year low
October 27, 2017 / 9:08 AM / 25 days ago

SES earnings miss forecasts, pushing shares to 8-year low

Oct 27 (Reuters) - Luxembourg-based satellite company SES reported lower-than-expected third-quarter earnings on Friday with weakness in its video and data operations, sending its shares to their lowest level in eight years.

SES shares fell as much as 15.8 percent to 14.05 euros, their lowest level since September 2009, and making them by far the weakest performers in the FTSEurofirst 300 index of leading European shares.

The company, which sells transmission capacity to the likes of Sky, Canal+ and India’s Zee TV, said core profit (EBITDA) fell 12.2 percent on a like-for-like and constant currency basis to 307.5 million euros ($357.7 million) in the July-Oct period.

That compared with the 315 million euro average expectation in a Reuters poll of analysts.

Third-quarter revenues fell 9.3 percent to 478.5 million euros, below the 492 million euros expected by analysts.

SES Video, the biggest division, reported a 5.4 percent decline in revenue on a comparable basis. The company said a defective satellite and some contracts that were not renewed had cut revenue by 11 million euros.

SES Networks, which largely transmits data such as for telecom operators and governments, also decreased by 8.4 percent, offset by issues at one of its satellites.

In June, SES said its satellite AMC-9 was no longer working properly, resulting in an impairment charge of more than 38 million euros and a reduction to its 2017 revenue forecast of 20 million euros.

On Friday, it repeated its full-year forecast for a slight decline of video results, but also said it now saw a moderate decline in fixed data earnings, from a previous forecast that these would return to growth. ($1 = 0.8597 euros) (Reporting by Manon Jacob in Gdynia; editing by Philip Blenkinsop)

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