SES S.A.

Combined with stagnating or slowly growing revenues in the government and fixed data segments in 2021 and 2022, and a continued decline in the video segment, we believe SES's return to growth will not occur before 2023. As a result, we expect SES to focus on operational savings and cash flow generation, which could strengthen its financial profile. In addition, SES lowered its capex guidance, due to lower expected replacement capex and a stronger euro (see chart 2). Also, the capex peak, initially concentrated on 2021, is now split between 2021 and 2022. As a result, SES should avoid a year of negative cash flow and improve its average free operating cash flow (FOCF). We expect the latter will stand

...Weaker growth prospects in the mobility segment push SES S.A.'s (SES) return to revenue growth further away. After three quarters of significant revenue growth in the mobility segment, where SES benefitted from fixed contracts signed in 2019, sales in the fourth quarter of 2020 declined by 20% (15% on a constant foreign exchange [FX] basis) due to COVID-19-related contract renegotiations. We believe disruptions faced by the air and maritime transport industries will continue to weigh on SES's performance in mobility, with flat revenue in 2021, and revenue growing by 5%-10% thereafter-¡a lower pace than previously expected--as the industries recover slowly. We also believe environmental concerns and the digitalization of business meetings could indirectly hinder demand for connectivity services, in particular air travel connectivity, in the longer term. Combined with stagnating or slowly growing revenues in the government and fixed data segments in 2021 and 2022, and a continued decline...

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