SES falls as media drag offsets Q2 earnings beat; guidance unchanged

Published 31/07/2025, 12:50

Investing.com -- Shares of SES (EPA:SESFd) slipped on Thursday after the satellite operator reported a modest second-quarter earnings beat but posted continued weakness in its media business and left full-year guidance unchanged.

Revenue for the quarter came in at €469 million, slightly below Morgan Stanley’s estimate of €470 million but 1% ahead of the consensus forecast of €464 million. 

Adjusted EBITDA reached €241 million, beating both Morgan Stanley’s €235 million estimate and the €232 million consensus. The EBITDA margin stood at 51.4%, down from 52.1% in the same quarter last year.

Group organic revenue growth was flat at 0.1%, compared with a 0.5% contraction in the first quarter, as growth in networks offset media declines.

Media revenue dropped 13.6% organically, steeper than the 10.6% fall recorded in Q1. 

SES cited lower revenue in mature markets, the impact of SD channel switch-offs and the full-quarter effect of a Brazilian customer bankruptcy. 

Media segment revenue totaled €192 million, slightly above Morgan Stanley’s forecast of €190 million but below the €194 million consensus and down from €225 million a year earlier.

Networks grew 12.5% organically, improving from 8.4% in the first quarter. Government revenue rose 21.1%, up from 13.1% in Q1. 

Mobility increased 10.8% from 8.5%, while fixed data declined 6.3%, widening from a 2.0% drop.

Government segment revenue stood at €153 million, 2.3% above Morgan Stanley’s estimate and nearly 8% ahead of consensus, up from €130 million a year ago. 

Mobility revenue was €75 million, slightly below both estimates and up from €70 million. 

Fixed data came in at €49 million, missing forecasts of €55 million and falling from €55 million in the same quarter last year.

SES reiterated its 2025 guidance for stable revenue and broadly stable adjusted EBITDA. The company also maintained its outlook for the combined business following its acquisition of Intelsat, which closed on July 17.

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