SES Q1 2022 Results
Solid start to 2022 with financial outlook and growth investments on track
Luxembourg, 5 May 2022 -- SES S.A. announces financial results for the three months ended 31 March 2022.
Solid performance delivering revenue of €448 million and Adjusted EBITDA of €274 million
• Important renewals in Video (-6% YOY, -4% YOY excluding US wholesale) delivering long-term value
• Resilient Networks performance (flat YOY) with Mobility growth and new Government wins to drive future revenue
• Adjusted Net Profit up 17% to €88 million including the benefit of lower recurring operating and interest expenses
• 2021 dividend of €0.50 per A-share (+25% YOY) was paid to shareholders in April 2022
On track to deliver robust 2022 Revenue and EBITDA and drive long-term value from differentiated growth investments
• Over 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
• $910 million of gross backlog for SES-17 (in service mid-2022) & O3b mPOWER (service introduction beginning 2023)
• $450 million DRS GES acquisition doubles US government revenue and profitably expands in a high value, growth segment
Steve Collar, CEO of SES, commented: “We have made a solid start to 2022 with a strong financial performance supporting the delivery of our full year 2022 outlook and further execution on our key strategic goals.
Our Video business continues to deliver long-term value for customers as demonstrated by the most recent deal announced with long-term partner Sky UK, valued at around €85 million. We have continued to see customers transitioning from SD to HD in the quarter and achieved year-on-year growth of HD+ in Germany. Our Networks business has performed well, on the back of strong growth in Mobility and an encouraging volume of wins across Government and Fixed Data that support our expected uptick in growth.
Looking to our future growth drivers, SES-17 has now reached its orbital location and will begin commercial services from mid-June 2022. O3b mPOWER is also progressing well with an increased launch cadence accommodated within our existing CapEx envelope. Commercial momentum continues to build for these assets with combined gross backlog up 20% year-on-year.
We are excited by the pending acquisition of DRS Global Enterprise Solutions, announced in March 2022, doubling our US Government business, and enabling us to serve US government customers with an expanded set of connectivity solutions, leveraging our unique multi-orbit fleet, and in particular the arrival of O3b mPOWER.
Finally, we are progressing well towards completing the second phase of US C-band clearing by end-2023 and triggering the remaining accelerated relocation payment of $3 billion (pre-tax), while creating a further $170 million in value for SES through our additional clearing 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 8,400 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.
Presentation of Results
A presentation of the results for investors and analysts will be hosted at 9.30 CEST on 5 May 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/20220505_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.
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.
No representation or warranty, express or implied, is or will be made by SES, its directors, officers or advisors, or any other person, as to the accuracy, completeness or fairness of the information or opinions contained in this presentation, and any reliance you place on them will be at your sole risk. Without prejudice to the foregoing, none of SES, or its directors, officers or advisors accept any liability whatsoever for any loss however arising, directly or indirectly, from use of this presentation or its contents or otherwise arising in connection therewith.
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.