SES Posts Revenue and EBITDA Growth in 2013
Luxembourg, February 21, 2014--SES reported 2013 revenues of EUR 1.862 billion (approximately US$ 2.59 billion), an increase of 3.4% at constant foreign exchange rates (FX) over the prior year period; 5.9% when excluding the EUR 42.6 million of analogue revenue recorded in 2012. 2013 EBITDA was EUR 1.364 billion, an increase of 2.8% at constant FX over the prior year; 6.2% when excluding analogue revenue.
Reported revenue grew by 1.9%, or 3.4% at constant FX (5.9% at constant FX, excluding analogue). Revenue growth was principally driven by the solid performance in the International region, which delivered an increase in revenue of 12.8% at constant FX.
New capacity, with secured anchor customers, made an immediate contribution, complemented by continued development of DTH platforms throughout the region. The European region posted an increase of 1.4% at constant FX, with an impressive ex-analogue increase of 6.3%. North American region revenue decreased by 2.9% at constant FX, which mainly reflected the revenue recorded in 2012 for services associated with the SES-3 Ka-band payload, and the full year impact of the payload reduction on AMC-16.
Operating costs continued to be tightly managed, delivering EBITDA of EUR 1,364.7 million. The EBITDA margin was 73.3%, slightly better than the 2012 ex-analogue margin of 73.1%. The infrastructure margin of 83.3% (2012 ex-analogue: 83.0%) increased, and the services margin also improved, to 17.1% (2012: 14.9%), reflecting the benefits of efficiency, scale and cost management, according to the company.
“SES has successfully continued to differentiate itself, reinforcing its position in developed markets, focusing on investments in regions and applications with high growth potential and implementing innovative developments in new applications and satellite technology. The company continued to expand its operations and delivered growth as foreseen, with a strong video focus delivering a 12% increase in the number of TV channels carried on the fleet to over 6,200. New business and renewals during the year delivered revenue and EBITDA growth at about 6% (as adjusted for analogue revenue in 2012) and increased the contract backlog to an historic high (at constant FX) of EUR 7.5 billion at the end of 2013. The success of the three satellite launches during 2013 provides a solid foundation for future growth. In particular, the launch of SES-8 on Falcon 9 in December opens a new era and is an important milestone in our continuous commitment to innovation and capex optimization," said outgoing SES President and CEO Romain Bausch.
Bausch will step down in April after 19 years with the company. He will be replaced by Karim Michel Sabbagh, who joined the SES in September last year as CEO designate. Sabbagh previously served as a member of the SES Board of Directors since 2011.
Related Articles:
