SES misses revenue estimates, shares slide despite guidance confirmation
SES Q2 Financial Results and Market Reaction
By Gianluca Lo Nostro
July 30 (Reuters) - European satellite operator SES reported second-quarter revenue well below market expectations on Thursday, sending its shares down more than 11% despite maintaining its full-year outlook.
Financial Performance Overview
The Luxembourg-based company, which last year completed its $3.1 billion acquisition of Intelsat, reported second-quarter revenue of 755 million euros ($863.9 million), below analysts' average estimate of 794 million euros, according to a company-compiled consensus.
Adjusted EBITDA and Analyst Expectations
Adjusted EBITDA fell to 321 million euros, slightly below analysts' expectations of 325 million euros.
Stock Market Impact
Paris-listed shares were down 11.2% by 0812 GMT, among the biggest decliners in Europe's STOXX 600.
Key Factors and Analyst Commentary
Company Statements
• CEO Adel Al-Saleh said second-quarter performance was hurt by slippage of some contracts
• SES confirmed full-year guidance for stable revenue and adjusted EBITDA
Analyst Reactions
• Berenberg analysts said meeting that guidance now looked challenging
• ING analyst Jan Frederik Slijkerman said the quarter was "materially weaker" than expected and noted competition from Starlink's V3 satellites
Investor Sentiment
• Investors had welcomed up to $5.6 billion in incentive payments announced on Monday for clearing satellite spectrum in the United States
Exchange Rate Note
($1 = 0.8739 euros)
Reporting Credits
(Reporting by Gianluca Lo Nostro; Editing by Janane Venkatraman and Matt Scuffham)
