UPDATE 1-SES H1 core profit up 10 pct, lower than expected
* H1 EBITDA 607 mln euros, vs expected 616 mln euros
* Repeats 2009 forecasts
* Says operational outlook is "favourable"
(Adds details, background)
BRUSSELS, July 31 (Reuters) - European satellite giant SES SESFg.LU(SESFd.PA) reported a 10 percent rise in first-half core profit (EBITDA) on Friday, slightly below analysts' expectations, and repeated its full-year outlook.
SES, which has shown little sign of pain from the economic downturn, said the operational outlook was "favourable". Analysts reason that consumers are more inclined to stay at home and their spending on television had not significantly changed.
SES, the world's second-largest satellite operator, said first-half EBITDA (earnings before interest, tax, depreciation and amortisation) totalled 607 million euros ($855.5 million).
The average forecast in a Reuters poll of 10 analysts was 616 million euros.
The company, which sells broadcast capacity to the likes of BSkyB (BSY.L), Canal Plus, Premiere PREGn.DE and NBC (GE.N), repeated it saw revenue growth of 3-4 percent on a like-for-like basis and an EBITDA margin for its infrastructure business of above 82 percent.
SES scored a number of contract wins in the first half, including a major renewal with BSkyB, boosting its backlog to 6.5 billion euros, four times 2008 revenue.
SES announced a 2 billion euro three-year credit facility in April to ensure future liquidity and issued a 650 million euro five-year bond in June. It said its net debt to EBITDA ratio was 3.16 times, below its cap of 3.3.
In recent years, SES has sacrificed its margins to expand services such as broadband Internet and high-definition television (HDTV). It has also expanded services to cable operators and government agencies.
Intelsat took over the number one spot from SES with its $3.2 billion purchase of PanAmSat PA.N completed in 2006.
Eutelsat (ETL.PA) is the other main commercial satellite operator and it too reported earnings on Friday. [ID:nLV547100]
It raised its three-year growth target after a 7.2 percent rise in full-year 2008-2009 revenue, supported by countries increasingly turning to satellites to widen their broadband coverage. (Reporting by Philip Blenkinsop)
