Luxembourg, 31 October 2023 -- SES S.A. announces financial results for the nine and three months ended 30 September 2023 and update on O3b mPOWER.
Key YTD Financial Highlights:
• Revenue of €1,494 million (+0.2% YOY), including €507 million in Q3 2023 (+3.1% YOY)
• Networks +5.0% YOY with Mobility, Government, and Fixed Data growth; Video -3.2% YOY with €445 million of contracts signed
• Adjusted EBITDA of €792 million (-4.5% YOY as reported) representing a margin of 53%
• 2023 financial outlook re-affirmed (Revenue: €1,950-2,000 million; Adjusted EBITDA: €1,010-1,050 million)
• U.S. C-band accelerated relocation payment ($3 billion pre-tax) fully received in October 2023
• Pro forma Adjusted Net Debt to Adjusted EBITDA ratio of around 1.5 times underpins strong balance sheet
O3b mPOWER update:
• Launch of satellites 5&6 planned in early November 2023 and commercial service expected to start from early Q2 2024
• In light of an increased number of power module switch offs over the past few months, mitigations to be put in place for initial satellites
• Current O3b mPOWER customers are expected be supported, as well as future customers and market growth
• Plan to upgrade satellites 7-11 and add 2 further satellites (12-13) within SES’s existing committed Capital Expenditure envelope
• Expected impact of O3b mPOWER delay in the order of mid-single digit percentage lower in terms of 2024 revenue and Adjusted EBITDA before potential mitigations, including optimised use of existing MEO and GEO fleet, and additional programmes in progress
• €150 million share buyback (announced 3 August 2023) to start in November 2023
• SES plans to exercise the call for €550 million hybrid (perpetual) bond in January 2024
• Adel Al-Saleh appointed as CEO, effective February 2024, with proven track record of value creation in dynamic markets
Ruy Pinto, CEO of SES, commented: “We are pleased with a solid year to date financial performance and remain fully on track to deliver on our 2023 financial outlook. We achieved year-on-year growth in all 3 of our main Networks segments and secured important Video renewals which underpin the long-term cash generation and value of our broadcast business. Solid EBITDA performance underscores our focus on managing controllable costs across the business.
I am delighted to confirm that we have now collected the full $3 billion (pre-tax) in accelerated relocation payments from Phase II U.S. C-band clearing. With the clearing completed ahead of schedule, we have fully delivered on the objectives of enabling accelerated deployment of 5G services in the U.S., protecting the critical broadcast services delivered by our customers, and realising significant value creation for SES.
We have identified the causes of the power module issues with the initial 4 satellites in orbit and have now put in place a plan to address those issues. With this plan in place, we now expect the launch of the next two O3b mPOWER satellites in early November and can look forward to deploying customers and beginning commercial services from early Q2 2024.”
Presentation of Results:
A presentation of the results for investors and analysts will be hosted at 9.30 CET on 31 October 2023 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. +1 786 697 3501
Confirmation code SES
Webcast registration https://channel.royalcast.com/landingpage/ses/20231031_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.
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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 over 6,400 channels and has an unparalleled reach of 369 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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