SES Full Year 2021 Results
Solid year of execution and performance underpins future growth and returns
Luxembourg, 24 February 2022 -- SES S.A. announces financial results for the year ended 31 December 2021.
Solid performance delivering revenue of €1,782 million and Adjusted EBITDA of €1,091 million at top end of financial outlook
• Improving Video trajectory (-4.6% YOY in 2021 vs. -8.0% YOY in 2020) ahead of our financial outlook
• Resilient Networks performance, +0.5% YOY in a COVID-impacted environment
• Adjusted Net Profit up 69% to €323 million including benefit of lower recurring operating, depreciation, and interest expenses
• $1 billion received from first C-band clearing milestone, strengthening the balance sheet, with second phase on track for end-2023
• Proposed 2021 dividend (paid in 2022) of €0.50 per A-share, representing a 25% YOY increase
On track to deliver robust 2022 Revenue and EBITDA and drive long-term value from differentiated growth investments
• Around 85% of 2022 Group Revenue outlook (€1,750-1,810 million) already under contract
• 2022 Adjusted EBITDA outlook (€1,030-1,070 million) reflects robust profitability despite added spend to drive Networks growth
• Over $900 million of backlog for SES-17 (in service mid-2022) & O3b mPOWER (service introduction end-2022)
Steve Collar, CEO of SES, commented: “2021 was a strong year for SES with revenue and Adjusted EBITDA in line with our objectives, over €1.2 billion of commercial renewals and new business wins secured, an increase in our Adjusted Net Profit reflecting our focus on all cost lines, and our net debt to EBITDA reaching a 6-year low.
Our Video business delivered an improved trajectory on the back of important renewals with our long-term broadcast partners, growing number of HD TV channels, and the expansion of the HD+ offering in Germany. Our Networks business performed well against the backdrop of an extended COVID environment, with a recovery in Mobility contributing to positive year-on-year growth in H2 2021, which we expect to accelerate over 2022.
2021 was also a pivotal year for our C-band initiative in the US as we completed phase one clearing ahead of the FCC deadline and received $977 million (pre-tax) in accelerated relocation payments. Phase two is fully on track with a busy year of satellite launches in 2022, paving the way to triggering an additional incentive of $3 billion in late 2023.
Looking forward and in 2022 we will bring our network of the future to the market with SES-17 entering commercial service in July and the first services on O3b mPOWER delivered before the end of the year. Customer engagement is growing well with almost a billion dollars of backlog now signed, including five of the top six major cruise lines, Microsoft, Marlink, and our landmark joint venture partnership with Reliance Jio. We also welcome the progress being made by the European Commission in the definition of a secure and sovereign multi-orbit European space architecture which aligns well with both our infrastructure and our vision.
Finally, we returned €275 million of cash to shareholders in 2021, underscoring our commitment to sustained and attractive shareholder returns. Increasing the base dividend for 2021 by 25% reflects our confidence in the long-term growth fundamentals and value creation of SES.”
For further information please contact:
Tel: +352 710 725 261
Tel: +352 710 725 500
SES has a bold vision to deliver amazing experiences everywhere on earth by distributing the highest quality video content and providing seamless connectivity around the world. As the leader in global content connectivity solutions, SES operates the world’s only multi-orbit constellation of satellites with the unique combination of global coverage and high performance, including the commercially proven, low latency Medium Earth Orbit O3b system. By leveraging a vast and intelligent, cloud-enabled network, SES is able to deliver high quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner to the world’s leading telecommunications companies, mobile network operators, governments, connectivity and cloud service providers, broadcasters, video platform operators and content owners. SES’s video network carries 8,400 channels and has an unparalleled reach of over 355 million households, delivering managed media services for both linear and non-linear content. The company is listed on Paris and Luxembourg stock exchanges (Ticker: SESG). Further information is available at: www.ses.com.
This presentation does not, in any jurisdiction, including without limitation in the U.S., constitute or form part of, and should not be construed as, any offer for sale of, or solicitation of any offer to buy, or any investment advice in connection with, any securities of SES, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever.
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This presentation includes “forward-looking statements”. All statements other than statements of historical fact included in this presentation, including without limitation those regarding SES’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to SES products and services), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance, or achievements of SES to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding SES and its subsidiaries and affiliates, present and future business strategies, and the environment in which SES will operate in the future, and such assumptions may or may not prove to be correct. These forward-looking statements speak only as at the date of this presentation. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will occur or continue in the future. SES, and its directors, officers and advisors do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Presentation of Results
A presentation of the results for investors and analysts will be hosted at 9.30 CET on 24 February 2022 and will be broadcast via webcast and conference call. The details for the conference call and webcast are as follows:
U.K. (Standard International Access): +44 (0) 33 0551 0200
France: +33 (0) 1 70 37 71 66
Germany: +49 (0) 30 3001 90612
NL: +31 (0) 20 708 5073
U.S.A.: +1 212 999 6659
Confirmation code: SES
Webcast registration: https://channel.royalcast.com/landingpage/ses/20220224_1/
The presentation is available for download from https://www.ses.com/investors/financial-results and a replay will be available shortly after the conclusion of the presentation.