[Satellite News 04-26-10] SES registered a tough first quarter, as issues such as the delay of the launch of the Astra 3B satellite, the future of ND SatCom and technical problems with the AMC-16 satellite, could cost the operator up to 13 million euros ($17.3 million) in revenues this year, according to SES.
    In the three months to the end of the March, the operator had revenues of 423.4 million euros ($564.8 million), a slight decrease compared to the same period in 2009. The company had operating profit of 188.2 million euros ($251.1 million) in the first three months of 2010.
    Eric Beaudet, a satellite analyst at Natixis Securities, said this figure was lower than consensus expectations, which were 433 million euros ($577.6 million). “This difference is mainly due to the service division, where sales are, once again, below expectations. The main infrastructure division saw sales come in line with expectations at 369 million euros ($492.3 million) versus our estimate of 370 million euros ($493.6 million), as growth accelerated following the entry in service of the NSS-12 satellite,” Beaudet said in research note.
    SES’ Astra 3B satellite, which was supposed to be launched in late March by Arianespace, now is unlikely to be launched until May. A specific date has not been set. In a conference call, SES CEO Romain Bausch said the operator will lose 2 million to 3 million euros ($2.67 million to $4 million) of revenue because of the delay. The operator also had to shut down some transponders on the AMC-16 satellite to conserve power, a move which is set to cost SES upto $10 million in lost revenues.
    As a result of some of the issues, SES has slightly lowered its guidance, and Beaudet said the outcome is disappointing. “The group lowered its 2010 sales guidance to 4 [percent] to 5 percent growth (from 5 percent beforehand). This was due to the slightly weaker first quarter and the delay in the launch of Astra 3B satellite as well as the reduction in revenues on the AMC-16 satellite following some solar array circuit failures. This is clearly disappointing, but long-term trends are intact and the group reiterated its three-year guidance, which is 5 percent growth over 2010/2012, despite the termination of analog DTH transmission in Germany in 2012.”
    However, with strong demand for capacity on satellites such as NSS-12, which entered service in January, and the newly acquired ProtoStar 2 satellite, Bausch is confident SES will have a strong year. “On NSS-12, there will be a ramp up of capacity. We expect to have that satellite full in around 12 months time. Most of the capacity on the Astra 3B satellite has been contracted out, once it is launched. We expect to lease a number of transponders on the ProtoStar 2 satelilte via ISRO to the DTH market in India. We are expecting strong utilization rates on new satellites,” Bausch said.
    Bausch also indicated the operator expects to have the future of ND SatCom resolved in the very near future. This could either be a complete sale or an investor coming in and taking a majority share. “We can confirm we are looking to de-consolidate ND SatCom by the middle of this year. We are working hard on advancing these issues. It can be a complete sale of the company or a partnership, where an investor would take over the majority ownership of the company. These are the two models we are discussing with the company.”