S&P Warns of Difficulties Facing Satellite Industry, Eutelsat, Inmarsat, SES
Citing weaker earnings prospects across the satellite industry, S&P downgraded Eutelsat, Inmarsat and SES. It said industry competition will skyrocket as high-throughput satellites mean capacity growing faster than demand for some applications like mobility. It said Eutelsat faces uncertainty in…
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its non-video business, particularly its broadband revenue growth. S&P said Inmarsat's mobility segment should face tougher competition from fixed satellite services, and extra capacity will drive down future prices. It also said Inmarsat is facing high equipment installation costs as it keeps investing in aviation and cabin connectivity and its interest in maritime could be hit by a price war with Iridium. It said SES' video business is facing increased competition, while parts of its data business could be pressured by the added capacity coming to the market. It said there's a risk for the satellite industry overall that broadcasters consolidate services on existing capacity via compression technology or internal initiatives. S&P said more competition from other video distribution networks such as fiber also is possible. Eutelsat, Inmarsat and SES didn't comment.