The satellite operator’s headquarters in Betzdorf, Luxembourg Photo: SES

The satellite operator’s headquarters in Betzdorf, Luxembourg Photo: SES

Luxembourg-based satellite operator SES on Wednesday posted net profits of €152m for the first half of this year, but a flat networks segment is failing to make up for video unit losses.

Underlying revenue in the company’s video segment was at €526m, down 3.9% year-on-year for the first six months of 2021. This compared to an 8% drop in revenue year-on-year at the end of the 2020 financial year.

Underlying revenue of €349m from the networks business, however, was flat compared to the first half of 2020 (-0.2%).

The company’s revenue outlook for the 2021 financial year remained unchanged and is expected to be between €1.76bn and €1.82bn, with around €1bn of that sum generated in the video segment.

SES delivers 8,650 TV channels to 361m homes around the world as of 30 June 2021, making up 60% of the group’s revenue.

“The lasting value of our video business is reflected in the improved trajectory, the important long-term renewals at our core neighbourhoods, increased penetration of HD TV channels, and new paying subscribers for HD+ in Germany,” said SES CEO Steve Collar in a .

“Our strong start to 2021 continued into the second quarter providing confidence to improve the low end of our adjusted EBITDA outlook on the back of solid execution and laser focus on reducing cost,” he said.

SES reduced operating expenses by 4.6% year-on-year as part of a restructuring plan aimed at streamlining operations and improving efficiency.

The firm last year said it would close offices in Brussels, central London, the Isle of Man, Warsaw and Zurich, redistributing activities from these locations to other offices in Kiev, Stockholm, Stockley Park in London and the Hague, as well as to its headquarters in Luxembourg.

The adjusted EBITDA outlook for full-year 2021 improved to between €1.08bn and €1.1bn, from €1.06bn to €1.1bn.

The company is planning four satellite launches later this year, the SES-17 satellite and a group of three satellites in its O3b medium Earth orbit constellation.