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COMMUNICATIONS: SES Q3 Results Slightly Ahead Of Consensus

COMMUNICATIONS

SESGFP                     Baa3/NR/BBB

Revenue and EBITDA look slightly ahead of consensus (albeit with a low # of estimates) with both now tracking to higher end of guidance range.

  • Revenue -2% YoY (+1.4% vs. BBG cons) for 9M24 -1.1%.
  • Media -3.1% for 9M24 -5.5% (half the business), Gov’t +5.1% for 9M24 +7.2% (quarter), Fixed Data -6.1% for 9M24 -7.4%, Mobility -7.4% for 9M24 +5%.
  • Adj-EBITDA -4.6% YoY (+6.4% vs. cons) for 9M24 -2%.
  • 9M24 FCF +4.8% on investment activities and higher cash interest received.
  • Leverage of 1.1x from 1.7x at H1 and 3.5x at Q323; reported ratio is for 50% hybrid treatment, and they issued two hybrids at end-Sept). 
    Contract backlog of EUR 3.7bn from EUR 3.8bn in H1 and EUR 4.7bn at Q323.
  •  
  • Guidance; revenue and EBITDA seen tracking to top end of EUR 1.94-2bn and EUR 0.95-1bn ranges, CapEx on track for EUR 500-550mn range.
  • mPower 7/8 on track to launch in Dec; Intelsat acquisition on track to complete in H225.
  • Future C-Band reimbursements expected at USD 150mn over Q4/H1 from USD 420mn at H1 (USD 310mn received YTD); ongoing engagement with insurers on the earlier mPOWER delays.
  • Call at 08:30 BST: https://channel.royalcast.com/ses/#!/ses/20241107_1

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