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Satellite margins remain high

28 December, 2011

SES has forecast that its profit margins on its satellite transponder business will remain above 80% as demand for satellite services increases. ...

However SES CEO Romain Bausch said “prices will not increase, and will at best remain stable.” Satellite companies like SES face challenges to their profit margin from a surge in satellite capacity and lower-margin services like broadband and video on demand. To manage this, the company is adjusting its supply. In areas where there’s overcapacity, such as the U.S., the firm plans to redeploy some satellites. To expand capacity in growing areas, SES is considering the acquisition of Greek and Asian satellite firms. The firm also plans to launch new satellites over Asia and Latin America by 2015 or 2016.

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