SES sees decline in video revenue

Satellite operator SES saw its video revenue decline by 3.8% on a like-for-like basis in the first nine months of the year, but reported an improving trend in the third quarter.

SES said that the 3.8% drop was “predominantly related to higher periodic revenue in the prior period, as well as the impact of changes in satellite health at the end of H1”. The company was also hit by lower revenue from services arm MX1 due to non-renewals. Underlying video revenue was down 0.9%.

SES’s overall revenue was €1.527 billion, up 2.5% on the prior year, but down 4% on a like-for-like basis.

SES said that the number of TV channels carried on its satellites was up 6% year-on-Year, while the number of HD channels was up 7%.

The company’s order backlog was €7.5 billion at the end of September, down from €8 billion a year earlier.

SES said a focus on differentiated managed services had delivered 2.2% growth in SES Networks’ revenue.

“SES has continued to make steady progress in executing its strategy and investing for the future in growth markets where we have a competitive advantage,” said president and CEO Karim Michel Sabbagh.

“SES Video’s underlying business remains stable with attractive long-term contracts in prime neighbourhoods, and additional growth potential in integrated platforms and services. This is demonstrated by the recently announced multi-year capacity renewal with Sky Deutschland and the addition of exclusive Eurosport content to our HD+ platform in Germany.”