SES Says German TV Switch-Off to Weigh on 2012 Earnings Growth

SES SA (SESG), the world’s largest publicly traded satellite operator, said Germany’s analogue satellite television switch-off will weigh on 2012 earnings growth.

SES forecast recurring revenue and earnings before interest, tax, depreciation and amortization, which exclude currency movements and one-time items, to rise by about 2 percent and 1 percent respectively this year, the Luxembourg- based company said in a statement today. Excluding the analogue impact, revenue and Ebitda on that basis are both predicted to rise by about 9 percent this year.

“The German switch-off is impacting our guidance,” Chief Executive Officer Romain Bausch said in an interview. “The underlying growth trends excluding this one-off impact are strong and sustainable.”

The CEO predicted the German switch-off will cut revenue by about 73 million euros ($96 million) this year. Recent delays in satellite launches and solar-array circuit failures are also affecting the 2012 revenue and Ebitda growth rates.

SES said 2011 net income rose 27 percent to 617.7 million euros because of lower financing charges and taxes. Revenue was little changed at 1.73 billion euros. Analysts expected profit of 557.2 million euros and revenue of 1.74 billion euros, according to the averages of estimates compiled by Bloomberg.

To contact the reporter on this story: Chiara Remondini in Milan at cremondini@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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