Global Business Delivering Growth for SES
Betzdorf, Luxembourg, July 24, 2015–SES S.A. (NYSE Euronext Paris and Luxembourg Stock Exchange: SESG) reports financial results for the six months ended 30 June 2015 where it highlights the deevelopment of a global business delivering strong growth in revenue and net profit.
Among the highlights of the report include:
- Revenue of EUR 999.1 million, up 6.4% (-2.6% at constant foreign exchange-FX) over prior year period
- Video, Mobility and Government revenues growing, with reduction in Fixed Data
- EBITDA of EUR 740.0 million, up 6.7% (-2.5% at constant FX)
- EBITDA margin of 74.1% (H1 2014: 74.0% at constant FX)
- Profit after tax up 13.9% to EUR 340.0 million; Net operating cash flow up 45.8% to EUR 784.4 million
- Full Year 2015 growth expectations lowered to around -3% for revenue and around -3.5% for EBITDA at constant FX, mainly due to impact of stronger U.S. Dollar in Fixed Data, and reduced capacity available to serve this vertical. Revenue and EBITDA are expected to grow on a reported basis
- Diversified, global revenue profile with 45% in U.S. Dollars driving reported growth from translation benefit
Karim Michel Sabbagh, President and CEO, commented: “SES has continued to make progress across the business in H1 2015 in delivering on our clear strategy of globalisation, verticalisation and dematuring. We have grown revenues in the three verticals of Video, Mobility and Government. We are addressing the reduction in renewals and new business in Fixed Data with new technology and customer solutions."
Group revenue as reported was EUR 999.1 million, representing an increase of 6.4%, which included the translation benefit of the stronger U.S. Dollar. Revenue was 2.6% lower at constant FX, principally due to the lower level of outright transponder sales under the comprehensive agreement with Eutelsat and the impact of the terms of the AMC-15/AMC-16 capacity renewal agreements with EchoStar up to the launch of SES-11 (due in Q4 2016). Adjusting for these events, group revenue was slightly ahead of H1 2014 (at constant FX) with growth in European services and new infrastructure business being offset by the impact of U.S. Government budget sequestration.
Reported EBITDA increased 6.7% to EUR 740.0 million. At constant FX, EBITDA was down 2.5% compared with H1 2014 as lower revenue was offset by a 3.0% reduction in operating expenses to EUR 259.1 million. As a result, reported EBITDA margin improved to 74.1% compared with 73.9% as reported (74.0% at constant FX).
Operating profit of EUR 449.9 million was 2.8% higher (down 4.1% at constant FX). This included a 13.2% increase in depreciation and amortisation expense to EUR 290.1 million, where the impact of the stronger U.S. Dollar more than offset a reduction in depreciation of 2.2% at constant FX.
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