[Satellite TODAY Insider 05-13-11] FSS operator SES turned in a 2011 first quarter performance that fell inline with both market and analysts’ consensus and allowed CEO Romain Bausch to maintain his company’s 2011 full-year guidance of 3 percent growth in recurring revenue and EBITDA, the operator announced in its latest financial results issued May 12.

SES generated a 3.5 percent increase in core profits at 321.5 million euros ($462.7 million) during the quarter, backed by 4.2 percent year-over-year growth in revenues at 428.4 million euros ($608.1 million).

            While the report brought little surprise to the operator’s investors, Natixis Analyst Eric Beaudet said he found insight in SES’ results related to the company’s efforts to cut operational costs. “SES’ infrastructure EBITDA came out at 84 percent — its second best performance ever — which dwells well for the operator’s future as it is a fixed cost business and can improve this result with its cost cutting and rationalization efforts put in place by SES. On the other hand, that growth does not develop on a linear basis and will depend on the timing of satellite launches, which are mostly scheduled for the second half of this year,” Beaudet said in a May 12 research report.

            Despite meeting expectations, Natixis and other analysis firms slightly downgraded SES’ revenue potential between 1 percent and 2 percent to account for the weakening U.S. dollar. Beaudet said that while the overall FSS industry remains healthy, SES faces considerable competition from its rival operator, Eutelsat. “The dearth of catalysts in the short-term include lackluster growth against Eutelsat, coupled with no share buybacks before 2012. This will probably limit upside on SES stock. We are therefore maintaining our Neutral rating on the operator.”