Photo: SES

Despite the COVID-19 pandemic, SES is staying the course for 2020. The satellite operator did not update its financial outlook for the year in its First Quarter (Q1) financial results released Thursday, saying the headwinds are in the early phase. SES CEO Steve Collar said the business is strong and resilient with fixed, long-term contracts, and 85% of expected revenue for 2020 is already secured. 

The Q1 results showed revenue of 478.9 million euro, and growth in the Networks segment. The satellite operator reported net profit attributable to shareholders of 50.8 million euro, about 30% at constant FX from Q1 2019. Operating profit was 104.3 million euro, down 8.5% at constant FX from Q1 2019. SES attributed the difference in net profit to the combination of lower operating profit, lower capitalized interest, and movement in net foreign exchange gains and losses. 

SES Networks vertical in Q1 was 41% of group revenue, up from 37% of group revenue in Q1 2019. Total Networks revenue was about 197 million euro, with 8.4% increase over Q12019 at constant FX. 

Video vertical revenue in Q1 2020 went down to 59% of group revenue compared to 63% in Q1 2019. Total Video revenue was about 282 million euro, down 8% from 2019 at constant FX. 

SES CEO Steve Collar said the results showed a “strong” start to the year and underlying revenue growth in SES Networks. 

“Our Networks business now represents more than 40% of our business overall and mobility continues to stand out with 29% growth year-on-year as we have seen the full year contributions of important customer contracts signed during 2019,” Collar said. 

In its last financial results, SES announced it is exploring separating its Networks business. At the time, Collar commented to Via Satellite that from an investor standpoint, SES has “two businesses under the same roof.” Collar said Thursday that the strategic transformation program, called “Simplify and Amplify,” is underway. 

“To date our results have been largely unaffected by COVID-19,” Collar said. “Nevertheless, the impact of the pandemic on the global economy and on several of the business verticals that we serve is profound and it is inevitable that we will be impacted as we support our most affected customers. It is too early to provide an assessment of the revenue impact that COVID-19 environment will have on our 2020 performance.” 

More on SES: 

Thursday Morning Conversation With Steve Collar

Steve Collar Satellite Executive of the Year 2019 Interview

Major Operators at SATELLITE Detail a Multi-Orbit Focus