SES Q2; YoY Decline But Ahead Of Consensus While Tracking To High End Of EBITDA Guidance

Rating: Baa3/NR/BBB EUR Spreads Muted

Q2 results look better than consensus albeit with YoY declines in revenue and EBITDA. Looking at the H1 numbers we see more modest declines of <1% with the additional assurance of management now guiding for FY EBITDA towards the upper half range. Weakness in the videos segment persists though this is a known trend by this point.

• Q2 revenue -3.7% YoY cFX (+0.5% vs. company consensus); H1 Cfx -0.6% YoY
• Adj-EBITDA - 5.7% YoY (+5.8% vs. consensus); H1 cFX -0.9% YoY
• H1 FCF of EUR 146mn up from EUR 86mn in H123.
• Leverage of 1.7x from 1.5x at Q1 and 3.6x at H123.
• FY guidance confirmed; tracking to high end of the EUR 950-1000 range.
• Not much on Intelsat, though they note that the “regulatory process is underway & on track for completion during the second half of next year; integration planning progressing”.
• A restructuring media customer in Brazil will impact FY25 revenues by 5% of the annual media revenue (this looks to be around 2.5% of annual group revenue). SES expects to at least offset this impact on EBITDA starting from 2025.