SES S.A. (Euronext Paris and Luxembourg Stock Exchange: SESG) reports financial results for the six months ended 30 June 2016.


Strong business foundations excluding non-comparables in H1 2015

  • Revenue of EUR 956.8 million, down 4.2% as reported (-4.8% at constant FX[1])
  • EBITDA of EUR 699.8 million, down 5.4% as reported (-5.8% at constant FX[1] and same scope[2])
  • EBITDA margin 73.1% (H1 2015: 74.1%) and 73.5% at same scope[2]
  • Net profit attributable to shareholders of EUR 227.3 million (H1 2015: EUR 275.4 million)
  • Net operating cash flow of EUR 566.8 million (H1 2015: EUR 784.4 million)
  • Substantial contract backlog of EUR 7.3 billion (H1 2015: EUR 7.4 billion)

Executing on SES’s differentiated strategy to deliver return to top-line growth

  • Growing Video with HD penetration at 32.7%, 16 UHD channels and International channels +11.1% (YOY)
  • Securing the largest ever capacity commitments in aeronautical connectivity with Gogo and Panasonic
  • Winning new U.S. Government business and renewals and expanding global government customers
  • Reshaping Enterprise business with benefit of focus on managed services and tier one customers
  • Accelerating top line growth as of Q3 2016 and expanding global capabilities with O3b Networks and MX1
  • EUR 1.65 billion secured to fund move to 100% ownership of O3b and accelerate important synergies
  • Generating EUR 750 million of annualised incremental revenue from GEO/MEO investments by 2021

Karim Michel Sabbagh, President and CEO, commented: “SES’s first half results were in line with management’s expectations, while the appeal of SES’s differentiated and holistic solutions to major customers has continued to deliver substantial contract backlog and validates SES’s capability-driven strategy.

SES is well positioned with strong foundations to generate sustainable and long-term growth. SES is globalising the business and developing the strongest, most scalable and flexible solutions across the four market verticals. SES has continued to build market-leading positions in global video and aeronautical connectivity. In Government, SES is delivering robust performance with the benefit of new contracts and renewals with the U.S. Government, as well as expanding with new global government customers.

In Enterprise, SES is growing the proportion of revenue from tier one global/regional customers and the provision of value-add managed services and network platforms. Although changing market dynamics result in short-term headwinds for the balance of SES’s Enterprise business, these will be more than offset in the medium to longer term, as SES continues to scale up and complement its global network and capabilities with additional products and solutions. This global network will seamlessly combine our GEO and MEO systems.

O3b expands SES’s global reach and satellite-enabled solutions, augments SES’s differentiated capabilities in data-centric verticals and enhances SES’s growth profile, including Enterprise. The transaction to move to 100% exceeds SES’s investment hurdle rates and accelerates over EUR 100 million of synergies by 2021. The completion of the equity raising and hybrid bond issue will allow SES to execute this important transaction, while retaining SES’s investment grade credit status (BBB/Baa2) and commitment to a progressive dividend policy.”

[1] “Constant FX” refers to the restatement of comparative figures to neutralise currency variations and thus facilitate comparison

[2] “Same scope” excludes transaction-related costs associated with the acquisition of RR Media and the remaining shares of O3b Networks