Solid YTD 2022 Results
Luxembourg, 3 November 2022 -- SES S.A. announces financial results for the nine and three months ended 30 September 2022.
YTD financial performance reflects solid execution across the business, complemented by value-accretive DRS GES acquisition
• Revenue of €1,400 million (+6.1% YOY as reported), Adjusted EBITDA of €829 million (+0.7% YOY as reported), and Adjusted Net Profit €277 million (+23.2% YOY as reported) including contribution from DRS GES (acquired 1 August 2022) and stronger US dollar
• Growth in Networks (+2.7% YOY) and important renewals secured in Video (-5.6% YOY including periodic) underpins Full Year standalone outlook of €1,750-1,810 million in revenue and €1,030-1,070 million in Adjusted EBITDA
• Expected revenue contribution from DRS GES acquisition of $85-90 million (from 1 August 2022 to 31 December 2022)
• Leverage at 4x due to DRS GES acquisition and growth investment; expected to reduce to around 3.5x by end-2022
US C-band clearing de-risked to deliver over $3 billion of value; differentiated investments to drive future long-term growth
• SES-20, SES-21, and SES-22 all successfully in orbit. Clear line of sight to Phase 2 clearing proceeds ($3 billion pre-tax)
• Additional clearing for Verizon nearing completion; expect $155 million in Q4 2022 with balance up to $15 million in early 2023
• SES-17 (in service/consuming backlog) & O3b mPOWER (service introduction Q3 2023) gross backlog $955 million (up 22% YOY)
• First O3b mPOWER launch scheduled for 15 December 2022 with further launches planned for Q1 2023
• Ground-breaking EAGLE-1 partnership advances SES’ leadership in Quantum Key Distribution and secure connectivity across Europe
Steve Collar, CEO of SES, commented: “Our year-to-date performance reflects solid ongoing execution across the business and we remain fully on track to deliver on our 2022 outlook, to capture significant value from US C-band, and to position SES for profitable long-term growth through the deployment of our state-of-the-art multi-orbit assets and architecture.
Our Networks business is up 2.7% year-on-year primarily driven by ongoing success in Cruise and Aviation. SES-17 is now contributing to growth across the Americas with 13 new deals signed in 8 different geographies, while Thales InFlyt Experience continues to transition aircraft successfully. In Government, we have completed the acquisition of DRS GES more quickly than expected and integration with our existing US Government business is well underway. The combined SES Government Solutions business now boasts scale and an expanded value proposition to our Government end-users just as we launch significant new assets in SES-17 and O3b mPOWER.
The first O3b mPOWER launch is scheduled for 15 December and, together with two further launches scheduled in Q1 2023, the constellation will enter service in Q3 2023. Importantly we have already deployed the O3b mPOWER environment on the ground, and our customers are starting to receive O3b mPOWER technology that will be deployed initially on our existing MEO constellation.
With the successful launches of our first three C-Band satellites, the second phase of clearing is de-risked and therefore we have clear line of sight to $3 billion in accelerated clearing payments due at the end of 2023. In equally good news, the additional US C-band clearing for Verizon is nearly complete and we expect to receive the majority of the $170 million of agreed proceeds by the end of this year.”
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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 around 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
Presentation of Results
A presentation of the results for investors and analysts will be hosted at 9.30 CET on 3 November 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/landingpage/ses/20221103_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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