SES Reports Increased Revenues, EBITDA in 2014
Luxembourg, February 20, 2015–SES S.A. (NYSE Euronext Paris and Luxembourg Stock Exchange: SESG) reports financial results for the year ended 31 December 2014. The company reported revenues of EUR 1,919.1 million, up 4.0% at constant FX over the prior year and EBITDA of EUR 1,428.0 million, up 5.0% at constant FX over the prior year.
EBITDA margin improved to 74.4% from 73.7% at constant FX. Profit of the group up 6.0% to EUR 600.8 million; EPS up 5.6% to EUR 1.49 in 2014. Dividend of EUR 1.18 per A-share proposed, representing 10% increase over 2013.
Karim Michel Sabbagh, President and CEO, commented: "SES delivered another year of strong revenue and EBITDA growth in 2014. This reflects a series of successes in key market verticals and geographies in securing new business, as well as further serving our long-standing customers. We have continued to execute on SES's strategic principles for delivering long-term profitable growth, and enhancing our world-leading satellite operations."
"We have expanded our core video business by developing new neighbourhoods, securing new contracts and increasing channel count. Our investments in innovative solutions that bring together linear and non-linear broadcasting are also paving the way for the introduction of Ultra HD TV. Data and Mobility applications are an increasing source of demand, and SES has continued to build its capabilities across multiple verticals – securing major new contracts for fixed networks as well as maritime and aeronautical connectivity. Our government business has continued to develop, with important new business wins despite the prevailing U.S. budget constraints. Within the business, our focus on operational optimisation has improved margins and enhanced overall profitability," Sabbagh added.
The sale of eight transponders to Eutelsat, as part of the comprehensive agreement in January 2014, was a significant overall revenue contributor to the European growth of 9.1% (at constant FX). This was complemented by new Direct-To-Home (DTH) contracts, European services growth and the contribution of the EGNOS hosted payloads. The International segment revenue grew by 8.3% at constant FX, benefiting from the continued success in commercialising new capacity brought into service in emerging markets. The North America region has continued to be negatively impacted by the U.S. Government sequester, which was the principal factor in the revenue decrease of 13.5% at constant FX.
Operating expenses decreased 1.3% as reported, and increased 1.3% at constant FX, mostly driven by variable costs associated with growth in services revenues. The continued optimisation of operating costs, coupled with revenue growth, has led to improved margins.
Reported EBITDA increased by 4.6%, or 5.0% at constant FX, leading to an improved EBITDA margin of 74.4%, compared with 73.3% (73.7% at constant FX) for the previous year.
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