Today SES SA released its financial results for Q2 2020.
SES secured liquidity and has a solid financial position. Average debt costs were lowered to 3.3% down from 3.6% in H1 2019. A succesful 400 m€ bond maturing in 2028 was succesfully placed with annual coupons of 2%.
The two segments continue to develop diametrically opposed: video is shrinking and network is growing. As a consequence, the former is loosing some significance and the latter is getting more important: revenue represents 59% of group revenue down from 63% in H1 2019.
Higher visibility on relocation payments and related investment plans paint a favorable longer-term picture. Comments on disciplined financial policy add some color.
No need to update my valuation. My initial investment thesis is still valid. I confirm my fair value estimate of € 14.33 per share.