SES headquarters. Photo: SES

Satellite operator SES reported strong momentum in its Networks business, particularly in the Government and Mobility sectors, as it reported its first half 2024 financial results on Aug. 1. 

Overall, SES reported 978 million euro ($1.1 billion) of revenue in the first half of 2024, down less than 1% year-over-year. Net profit was 73 million euros ($79 million). 

The Networks business continues to grow, increasing revenue in H1 by 5% year-over-year to 523 million euros ($565 million). The Networks business now makes up more than 54% of the company’s overall revenue. 

Mobility saw the largest growth in the Networks segment, up 11% year-over-year to 154 million euros ($166 million). 

SES CEO Adel Al-Saleh told investors on Thursday that within the Mobility segment, maritime saw double-digit growth in the first half of the year with periodic revenue and new cruise ships added to the service portfolio. Aviation saw high single-digit growth for new contracts signed to support in-flight connectivity (IFC) partners.  

Al-Saleh said that much of SES’s business in IFC is through working with partners, but the operator is increasingly being asked by customers to bid directly for contracts. Al-Saleh cited “massive demand in aviation. 

Increased Government Demand 

Revenue in the Government segment grew 8.4% year-over-year to 255 million euros ($275 million). Al-Saleh said SES expects mid- to high-single digit revenue growth in the future. He said SES has signed several government contracts that will be announced in the next few months. 

Growth is driven by the fact that U.S., European, and global governments see satellites as a key component of their military and non-military strategies. 

“We see demand — whether it is in military missions or in social connectivity and digital initiatives — is very strong,” Al-Saleh said. “Governments are not looking for one solution. They’re looking for multiple orbits, and with our unique MEO capability and GEO combination and partnerships in LEO, we see [demand] continue to be strong.” 

The next-generation O3b mPOWER constellation is seeing very strong demand from governments. The constellation entered into commercial service in April, and customers are now being deployed onto the system. 

Al-Saleh said that SES is capacity constrained on mPOWER as it waits for additional satellites to launch and is currently prioritizing government customers for the capacity. 

SES maintained its expected launch schedule for the additional O3b mPOWER satellites. SES expects satellites 7 and 8 to launch in late 2024. Satellites 9-11 will launch in 2025, and satellites 12-13 will launch in 2026. 

Revenue in the Video segment continues to decline. First half of Video revenue of 454 million euros ($490 million) was down 6.7% year-over-year. SES reported the decline is driven by lower revenue in mature markets in North America and Asia, partially offset by double-digit year-on-year growth in Sports & Events revenue, in part driven by the Olympics.  

The operator previewed headwinds with the Video business next year as a customer in Brazil is going through bankruptcy. The operator expects this customer situation will contribute 5% lower revenue in 2025, on top of Video’s ongoing decline.

Intelsat Acquisition is On Track 

Al-Saleh also confirmed the deal to acquire Intelsat, announced in April, is on track and is expected to close in the second half of 2025. The transaction is subject to relevant regulatory clearances.

“The two companies are making strong progress in terms of detailed integration planning, while respecting all legal and regulatory requirements as the two businesses continue to operate fully independently,” Al-Saleh commented.