Satellite operator SES reported today its revenue increased by 5.5% to EUR 1.828 billion (US$2.41 billion) in 2012 compared to EUR 1.73 billion (US$2.28 billion) in 2011 raising profit by 5% to EUR 648.8 million (US$855 million).
SES also reported a 5.6% increase in EBITDA to EUR 1.346.6 billion (US$1.775 billion) compared to EBITDA in 2011 of EUR 1.274.6 billion (US$1.68 billion).
Romain Bausch, President and CEO, said 2012 was a highly successful year even with the German analogue broadcasting switched off, taking EUR 108 million (US$142.37 million) out of SES revenue.
“Revenue and EBITDA growth in 2012 was in line with guidance although impacted by the SES-5 launch delay and reduction of capacity on AMC-16, which in total represented EUR 13 million (US$ 17.14 million) of lost revenue. New capacity launched in 2012 will fuel growth in 2013 and 2014, as momentum is maintained in Latin America, Africa and Asia,” he said.
Bausch reiterated the group’s 3-year revenue and EBITDA CAGR guidance of 4.5%. He added he looks forward to two launches, with a subsequent entry into service, of the O3b Networks constellation, which he said will deliver substantial value in the years to come.
Overall, the Group EBITDA margin increased to 73.7% (2011: 73.5%), with the industry-leading margin on infrastructure revenue increasing to 83.5% (2011: 82.3%), while services delivered a margin of 14.8%, in line with the prior year.
SES said new satellites entering service resulted in an increase in depreciation, which was amplified by the stronger U.S. dollar exchange rate, and impairment charges recorded in respect of solar array circuit failures on AMC-16. This resulted in higher depreciation charges but operating profit dropped slightly to EUR 790.5 million (US$1.04 billion) compared to 2011’s EUR 808.2 million (US$1.06 billion).
Profit of the group rose by 5.0% to EUR 648.8 million (US$855 million), driven by operating earnings and taxation.
European region revenue declined by 3.6% to EUR 923.3 million (US$1.22 billion) due to the analogue switch-off in Germany in April, which led to the loss of EUR 108 million (US$142.37 million) of revenue. But the loss was partially offset by EUR 74 million (US$97.6 million) of new revenue added in the European region, arising from the re-commercialization of part of the capacity freed up, and growth at other European orbital positions, as well as by the robust performance of HD+ in Germany.
SES said its overall European inventory increase through the period of 12 transponders, to 345 transponders, was delivered with the launch and entry into service of SES-5 and its Ku-band Nordic beam. The number of utilized transponders, however, declined by a net 21 as a result of the German analogue switch-off at 19.2°E and the cable contract terminations at 23.5°E, which were partially compensated by increased utilisation at 28.2°E, 31.5°E and 5°E.
The utilization rate in Europe at the year-end was 80.9%, compared to 90.1% at the end of 2011. Transponder pricing in the various markets remained stable.
