SES Posts Strong Results for the 1st Half 2014
Betzdorf, Luxembourg, July 25, 2014--Satellite operator SES posted H1 revenues of EUR 938.9 million (2013: EUR 910.5 million) in the first half of 2014-an increase of 6.3% over the prior year period at constant exchange rates. EBITDA for the 1st Half of 2014 was EUR 693.8 million (2013: EUR 662.0 million)-- an increase of 7.4% over the prior year.
EBITDA margin was 73.9% compare to 72.7% for 2013. Operating profit rose to EUR 437.5 million, an increase of 9.4% at constant exchange rates. 1st Half Profit of the group increased 8.5% to EUR 290.9 million (2013: EUR 268.0 million). Contract backlog stands at EUR 7.2 billion at end of June 2014 while Closing Net Debt / EBITDA ratio was 2.85 (30 June 2013: 3.07).
“SES’s continuing successful development and execution of the 2014 plan has delivered robust first half results that validate our strategy to address target regions and market verticals. Video remains core to our business. Europe and the International segments posted strong growth, while the North American segment continued to be affected by the U.S. Government budget sequester. The 2014 financial guidance is reiterated," said Karim Michel Sabbagh, SES President and CEO.
Net financing charges of EUR 85.2 million were EUR 2.7 million higher than the prior year, principally reflecting the impact of the lower level of satellite capital expenditure on the capitalisation of interest. The group’s weighted average interest rate (excluding loan origination cost and commitment fees) has remained under 4%, while average debt maturity has been extended to 8.7 years.
The group’s tax charge of EUR 53.7 million (H1 2013: EUR 45.3 million) represented an effective tax rate of 15.2% (H1 2013: 13.9%), in line with the full year guidance range of 13% - 18%. The share of loss attributed to associates was EUR 7.2 million (2013: EUR 12.3 million), with the decrease reflecting mainly a one-time charge of EUR 3.1 million taken in 2013 in connection with the disposal of the Group’s remaining interest in ND SatCom.
These items were the principal variances to the prior year period, resulting in a H1 2014 net profit of EUR 290.9 million, an 8.5% increase over the EUR 268.0 million recorded in H1 2013.
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