Bulletin: SES's 2019 Results And Revised Guidance Confirm Difficulty To Return To Growth

PARIS (S&P Global Ratings) March 16, 2020--S&P Global Ratings today said that, in line with expectations, fixed satellite operator SES S.A.'s 2019 results showed that the decline in video continued to detract from total revenue. SES (BBB-/Stable/A-3) has consequently lowered its projections for 2020, leading us to revise down our revenue growth forecast for 2020 to a 1.0%-1.5% decline, instead of a return to slight growth (0%-0.5%). We continue to believe a turnaround will likely occur between 2021 and 2023, driven by SES's competitive advantage in the networks segment (see Full Analysis: "SES S.A.," published Jan. 23, 2020). However, we note that the impact of the coronavirus pandemic could hinder operations of the company's mobility segment, which contributes to about

...March 16, 2020 PARIS (S&P Global Ratings) March 16, 2020--S&P Global Ratings today said that, in line with expectations, fixed satellite operator SES S.A.'s 2019 results showed that the decline in video continued to detract from total revenue. SES (###-/Stable/A-3) has consequently lowered its projections for 2020, leading us to revise down our revenue growth forecast for 2020 to a 1.0%-1.5% decline, instead of a return to slight growth (0%-0.5%). We continue to believe a turnaround will likely occur between 2021 and 2023, driven by SES's competitive advantage in the networks segment (see Full Analysis: "SES S.A.," published Jan. 23, 2020). However, we note that the impact of the coronavirus pandemic could hinder operations of the company's mobility segment, which contributes to about 10% of the group's revenue and is its most dynamic activity, with a 26% revenue increase in 2019. If the magnitude of the coronavirus health emergency amplifies, further affecting airlines and maritime transport...

Bulletin