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    Halima Elyas • Unknown

    Halima Elyas's questions to SES SA (SGBAF) leadership

    Halima Elyas's questions to SES SA (SGBAF) leadership • Q1 2025

    Question

    Halima Elyas inquired about the potential opportunities for SES from rising European defense budgets and the scope for continued cost efficiencies versus potential margin dilution from increased equipment sales.

    Answer

    CEO Adel Al-Saleh confirmed increased demand from European defense spending, citing a German Ministry of Defense article highlighting the need for multi-orbit commercial partnerships as a mid-to-long-term boost. He also affirmed that cost control is a sustainable part of SES's strategy with more room for efficiencies, especially post-Intelsat merger. CFO Sandeep Jalan added that discretionary costs were down 6% YoY in Q1, on top of an 8% reduction last year, and that the revenue mix shift to Networks and cost controls would offset media margin decline, reaffirming a stable full-year margin outlook.

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    Halima Elyas's questions to SES SA (SGBAF) leadership • Q1 2025

    Question

    Halima Elyas of Jefferies inquired about the potential opportunities for SES from rising European defense budgets and the extent to which the company can maintain its strong cost control without diluting margins as equipment revenues increase with the mPOWER service launch.

    Answer

    CEO Adel Al-Saleh confirmed that SES is seeing increased demand from European defense, which is expected to materialize in the mid-to-long term, and emphasized that cost control is a sustainable part of their strategy. CFO Sandeep Jalan added that discretionary cost reductions are offsetting the revenue mix shift, allowing the company to reaffirm its full-year margin guidance of around 50-51%.

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