SES H1 2022 Results
Solid execution against full year targets and strategic value creation initiatives
Luxembourg, 4 August 2022 -- SES S.A. announces financial results for the six months ended 30 June 2022.
Solid First Half financial performance
• Revenue of €899 million (+2.8% YOY as reported) and Adjusted EBITDA of €545 million (flat YOY as reported)
• Important renewals in Video (-5.1% YOY including periodic) underpin Full Year outlook
• Revenue expansion in Q2 2022 driving Networks growth (+2.1% YOY) and supporting Full Year growth expectation
• Adjusted Net Profit improved by 11% YOY to €168 million, while leverage reduced to 3.0 times
On track to deliver robust 2022 Revenue and EBITDA and drive long-term value from differentiated growth investments
• Over 90% of 2022 Group Revenue outlook (€1,750-1,810 million) under contract; 2022 Adjusted EBITDA outlook also on track
• $930 million of gross backlog for SES-17 (now in service) & O3b mPOWER (progressing towards service introduction in Q2 2023)
• $450 million DRS GES acquisition completed expanding revenue base in profitable and growing Government segment
Important milestones achieved in US C-band clearing
• First satellite (SES-22) successfully launched and now in service; Phase 2 clearing on track
• Over $520 million of cost reimbursements received to date via the clearinghouse process
• Additional clearing for Verizon over 50% complete; expect to complete in H2 2022 to earn up to $170 million (gross) payments
Steve Collar, CEO of SES, commented: “I am pleased with our H1 2022 results reflecting solid execution across the business and affirming that we are fully on track to deliver on our full year revenue and EBITDA outlook.
Our Networks business delivered growth of 2% year-on-year and this trajectory will be further strengthened by important wins with ARSAT and AXESS Networks, agreements signed with Explora Journeys and another leading cruise provider reinforcing our leading position in cruise, and the entry into service of SES-17 which is now operational and delivering commercial services to customers.
We have closed the acquisition of DRS GES, allowing us to combine the best-in-class Government solutions provider together with our state-of-the-art multi-orbit satellite networking capabilities at SES Government Solutions and expanding our value proposition towards US Government end users. The combination is compelling in view of our leadership in Medium Earth Orbit and the highly differentiated capabilities of the O3b mPOWER constellation, launching in Q4 with service introduction during the second quarter of 2023.
We secured several important renewals at our core video neighbourhoods in the first half and, with limited contract maturities in the second half, have clear line of sight to our full year revenue outlook, with first half performance complemented by growth in our HD+ and Sports & Events businesses.
Finally, our C-band clearing is proceeding well with the successful launch of SES-22, the first significant reimbursement payment received, and we are well on track to capture the $170 million of gross cash proceeds from our additional C-band agreement with Verizon.”
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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 ~8,000 channels and has an unparalleled reach of 366 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.
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Presentation of Results
A presentation of the results for investors and analysts will be hosted at 9.30 CEST on 4 August 2022 and will be broadcast via webcast and conference call. The details for the conference call and webcast are as follows:
U.K. +44 (0) 33 0551 0200
France +33 (0) 1 70 37 71 66
Germany +49 (0) 30 3001 90612
U.S.A. +1 212 999 6659
Confirmation code SES
Webcast registration https://channel.royalcast.com/ses/#!/ses/20220804_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.