SES says it’s exploring the possible separation of its networks business from the rest of the company.
The satellite operator has launched ‘Simplify and Amplify’ that will simplify its operations look towards future growth. It says the operation is the latest stage in the process begun in 2017 when SES first established distinct units for its video and data businesses.
SES believes the restructuring will help it cut costs by between €40 million and 50 million per year.
The programme comprises four major initiatives. The first is a possible separation of the Networks business that would provide it with access to external capital, while helping to focus on the cash generating video delivery business.
SES is also putting in place a dedicated team that will handle the repurposing of C-band spectrum in the United States.
Overall, there will be a strategic review of the company’s global footprint.
“Our vision is content and connectivity everywhere, and we are positioning SES to realise this vision and deliver growth and value for our customers in their fast-changing markets,” said Steve Collar, CEO of SES. “This next phase of our strategic transformation is designed to ensure that we prepare SES for an exciting future while delivering on our commitments to customers and to the market today. In so doing, we will make SES a simpler organisation to do business with and deliver substantial value to all.”
Collar said he was “satisfied” with SES’ annual results that saw a reduction in group revenues of €1,983.9 million. Net profit grew slightly at €296.2 million.
The video business saw a 7.8% fall in underlying revenue. SES said it was responding to “DTH and cable customers ‘right-sizing’ capacity”.
