SES Global, the world's largest satellite broadcaster, increased its profit forecast for 2006 as newly launched satellites spur sales. The shares rose as much as 5.8 percent.
Excluding purchases, profit before interest, taxes, depreciation and amortization is now expected to be between 918 million euros and 938 million euros in the full year, SES Global said in an e-mailed statement today. That's an increase of 23 million euros from the earlier forecast.
Sales growth will be approaching10 percent this year, the Betzdorf, Luxembourg-based company said. Revenues will continue to grow faster than those of our peers.
SES Global, which leases satellite capacity to broadcasting companies such as British Sky Broadcasting Group Plc and General Electric Co.'s NBC, launched two satellites last year and plans to bring more into orbit this year to help meet rising demand in Asia, the U.S. and Eastern Europe. The company is also selling new services such as digital television and mobile-phone calls using satellites to help increase sales.
Shares of the company increased as much as 60 cents to 10.89 euros in Paris, and traded at 10.65 euros as of 9:40 a.m., giving the company a market value of 5.86 billion euros. Before today, the shares had lost 30 percent since the start of 2006, compared with a 6.9 percent gain in France's SBF 120 index.
Net income in the first half rose to 215.6 million euros from 167.7 million euros a year earlier, the company said today. Sales at SES Global gained 17 percent to 710.5 million euros.
The company also in December agreed to buy competitor New Skies Satellites Holdings Ltd. for $760 million to expand coverage in Asia and services to clients including the U.S. Department of Defense.
Including acquisitions and restructuring costs, SES Global expects Ebitda to be in the range of 980 million euros to 1 billion euros in 2006 and sales to grow more than 20 percent, the company said today.
The combination with New Skies may help SES weather increased competition as the industry consolidates. Intelsat Ltd., the No. 2 global commercial-satellite provider, in August 2005 agreed to buy PanAmSat Holding Corp. for $3.2 billion in cash. Eutelsat Communication SA, the world's No. 3 satellite company, raised about 860 million euros in an initial share sale in December.
The New Skies acquisitions will help to cut costs by $30 million a year, SES Global said today. The savings will be fully achieved starting in 2008, with $20 million expected in 2007. SES Global expects to have about $38 million in costs in the next 12 months to integrate New Skies.
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