(Reuters) - Satellite operator SES cut its core profit and revenue forecasts for 2020 on Monday, citing a projected slowdown in its video and networks divisions.
The Luxembourg-based company said it would halve dividends year-on-year and announced the next phase of strategic transformation, which includes separation of its data business within the company and EBITDA optimisation of 40 million euros -50 million euros ($44.16 million-$55.21 million) annually from 2021 onwards.
SES, a Wi-Fi service provider for aircraft and ships, now expects its 2020 earnings before interest, taxation, depreciation and amortisation (EBITDA) to come within a range of 1.15 billion euros to 1.21 billion euros, and revenue between 1.92 billion euros and 2.00 billion euros.
Previously, the company had expected its 2020 EBITDA to come within the range of 1.26 billion euros to 1.34 billion euros, and revenue between 2.06 billion euros and 2.16 billion euros.
The forecasts exclude any impact from the C-Band, a block of spectrum used to deliver video and radio programming to 120 million U.S. households, and it is seen as the most likely short-term source of available spectrum for 5G use.
($1 = 0.9057 euros)
Reporting by Pawel Goraj; Editing by Subhranshu Sahu