The SES headquarters in Betzdorf, Luxembourg. Photo: SES

New O3b mPOWER satellites for SES will increase capacity of the constellation by nearly 30% this year, which will bring critical capacity for customers in government, maritime, and aero, CEO Adel Al-Saleh told investors on Wednesday. 

SES reported its first quarter 2025 financials on April 30, reporting stable revenues with 8.4% year-over-year growth in the Networks business offsetting a 10.6% decline in Media, which was impacted by bankruptcy of Brazilian media company Oi. 

Al-Saleh also told investors the Intelsat acquisition is on track to close this year, and the company expects it to close in the earlier part of the second half of 2025. Regulatory approvals are still ongoing. 

The seventh and eighth satellites in the O3b mPOWER Medium-Earth Orbit (MEO) constellation that launched in December will enter service in the next few days, Al-Saleh said. These two satellites have redesigned payload power modules compared to the first six satellites, four of which experienced issues with their power modules. 

The current O3b mPOWER fleet is sold out and capacity constrained, Al-Saleh said, and SES has prioritized capacity for Government, Maritime, and Aero segments, over Fixed Data. 

“With each satellite increase launch, we’re able to reconfigure the constellation to increase capacity. From May, we will be increasing capacity by almost 30% to the constellation this year. We’ll start seeing this year an increase in capacity for all segments,” Al-Saleh said. 

SES held back on selling the new capacity ahead of time to make sure the launch was completely successful. Al-Saleh said the sales pipeline is ready, but SES has waited to close contracts until the satellites are in service. 

“We expect that this incremental 30% capacity will be sold very quickly because we are sold out in the other capacity. We expect it to be taken up quite quickly,” he said. 

Last year, SES filed an insurance claim on the first four O3b mPOWER satellites that experienced the issue for 70% of the insured value of the satellites, according to Seradata, which tracks the space insurance market. 

CFO Sandeep Jalan said Wednesday some initial settlements have closed, and SES expects to collect $58 million during the second quarter. Negotiations are ongoing with other insurers. 

First Quarter Results

SES reported revenue of 509 million euros ($578 million), down half a percentage point year-over-year. Networks growth of 8.4% year-over-year offset Media revenue decline of 10.6% year-over-year, impacted by the Brazilian TV bankruptcy. 

Al-Saleh noted that SES signed a deal this quarter with Mileto Technologia in Brazil which will mitigate some of the revenue lost from the Oi bankruptcy. Media revenue was 206 million euros ($234 million) in Q1. 

The Networks business saw the most growth in government, with a 13% year-over-year increase to 148 million euros ($168 million). SES said this segment saw expansion in both the U.S. and global government business.

Adel Al-Saleh said SES saw some impact from USAID shutting down, as the government agency used satellite capacity. But overall he is confident in growth demand for capacity from the U.S. government and Department of Defense and SES’s role in supporting national security. 

The Mobility business grew 8.5% year-over-year to 85 million euros ($96 million), with double-digit growth in aviation. Fixed Data declined 2%.

SES confirmed its 2025 financial outlook for stable year-over-year revenue and broadly stable adjusted EBITDA.

“On the back of a strong performance, the Networks business now accounts for approximately 60% of revenues and delivered year-on-on-year growth led by government and mobility. This highlights our robust position in target segments with a differentiated multi-orbit offering,” Al-Saleh commented.