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European satellite operator SES reported a 1.3% increase in net profit to EUR 296.2 million and a 1.3% decrease in revenues to reach EUR 1.98 billion in 2019, as its video business continued to decline, the company announced.

SES is cautious for 2020, forecasting revenues in the range between EUR 1.92 and EUR 2 billion and a stable or slightly declining EBITDA (EUR 1.15 to EUR 1.21 billion, compared to EUR 1.21 billion in 2019).

These 2020 forecasts are slightly lower than those previously predicted by the group.

SES has also indicated that it is considering the spin-off of its “Networks” activity.

This growing business, unlike video, “is growing very fast” and “is very capital-intensive”, explained the group's CEO, Steve Collar, in front of a few journalists.

The planned spin-off would “give us flexibility” by allowing us, if necessary, “to have recourse to external capital”, he explained, without excluding, for example, a stock market listing.

The Networks business saw its sales increase by 4.5% (at constant exchange rates) to €734.1 million. It now represents 38% of the group's business, compared with 35% a year ago.

The Video business declined again in 2019, with a 7.8% decline (at constant exchange rates) to EUR 1.210 billion. It now accounts for 61% of the group's revenues, compared with 65% in 2018.

The SES share price experienced a difficult year in 2019 and a difficult start to 2020, starting at around EUR 17 but falling sharply in mid-November, ending at EUR 10.38 at the close.

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