July 27, 2018 / 6:09 AM / in 9 months

Satellite company SES beats forecasts on strong networks growth

July 27 (Reuters) - Satellite company SES on Friday beat first-half core profit forecasts, boosted by strong growth in its networks business.

Faced with a decline in its core video business as a result of the increasing popularity of online streaming services such as Netflix, SES has been expanding fast into mobility, providing connectivity services such as Wifi to planes and ships.

“It is pleasing to see that our underlying revenues are growing again, fuelled by sustained performance from our Networks business and in particular from our aeronautical and government customer segments,” Chief Executive Steve Collar said in a statement.

The Luxembourg-based company’s first-half earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4.4 percent at constant exchange rates to 621.1 million euros ($723.5 million). Analysts polled for the company had on average expected EBITDA of 610.1 million euros.

The company confirmed its guidance for 2018 revenue and EBITDA, saying revenue was expected in the top half of the range of 1.990-2.035 billion euros previously given.

However, it cut its 2020 revenue guidance to 2.110-2.210 billion euros from its previous target of over 2.235 billion euros, reflecting a more cautious outlook for its video business. ($1 = 0.8585 euros) (Reporting by Alan Charlish in Gdynia; Editing by Gopakumar Warrier)

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