Q4 revenue beat expectations SES Q4 revenues came 7% ahead of expectations with both Video and Networks at the higher end of expectations. Solid mPower terminal sales in Government helped drive the beat and are a good leading indicator for future demand for mPower capacity. An unexpected change in regulation resulted in a new recurring EUR16m annual charge all booked in Q4 23. This explains the lower-than-expected EBITDA and EBITDA margin for Q4 23. Capex was lower than expected. DPS is in line. SES is moving to a semi-annual dividend payment with an additional EUR0.25 in October. FY24 outlook 3-4% ahead of expectations Management guided for growth in SES Networks and a mid-single-digit decline in Video, resulting in a guided revenue range 3% ahead of consensus at the midpoint. Management suggested it is aiming for the upper end of its EUR1,940m-2,000m range. Despite higher start-up costs, EBITDA 24 guidance came in line with expectations. We raise our FY24 revenues by 4% and EPS 24 by 2%. Good progress on deleveraging With a further USD410m of FCC payment and a potential USD472m insurance claim pending, SES''s balance sheet leverage is trending towards 1x. Management has announced the repayment of EUR1bn of gross debt. Solid progress on the deleveraging is a positive, in our view. More clarity on capital allocation at the interim results The negative share price reaction likely reflects the lack of announcement on capital allocation. With IRIS2 potentially requiring a sizeable investment (newsflow expected in March/April), we find it understandable that the CEO of 4 weeks needs more time to formulate the capital allocation strategy. For the benefit of long-term shareholders, we continue to argue that protecting the balance sheet of a company in a disrupted industry should take precedent over cash returns. We expect SES to return to sustainable top-line growth from FY25 as mPower takes off. We remain Outperform.