SES Reports Flat Profits in First Half of 2013
Luxembourg, July 26, 2013 — SES S.A. reported slightly higher revenues of €910.5 million (US$1.207 billion) for the first six months of the year compared to the same period last year, and a flat operating profit of €408.6 million (US$541.85 million) during the first half of the year compared to €411.5 million (US$545.78 million) during the same period last year.
The modest performance and the push back of the launches of three satellites this year has forced SES to cut its forecast of revenue and earnings in 2013. The company’s contract backlog of €7.1 billion (US$9.41 billion) for the first half of the year, compared to €6.8 billion (US$9.01 billion) in 2012, was one of the few positive spots in the SES latest financial report.
Romain Bausch, President and CEO, remained optimistic saying “SES is growing in all markets.” He said SES has launched and will shortly bring into service SES-6 satellite that will support its future growth.
“An impressive list of recently signed agreements with DTH operators demonstrates the success of our growth strategy in emerging markets, with Oi in Brazil, Cignal Digital TV in the Philippines, Sky Vision in Indonesia, as well as Platco Digital and Wananchi in Africa all developing their businesses on SES satellites. Revenue from these regions increased by 9.3 percent compared to H1 2012,” Bausch said.
He also reported an important milestone with the successful launch of O3b Networks’ first four satellites. SES is one of the biggest investors of O3b with 47 percent interest. The launch of the next four spacecraft in September will allow for the commercial operations to begin before the end of this year.
Bausch revealed that there will be a delay in the launch of three of its satellites, which should have contributed new capacity and accelerated revenue growth. Because of this, SES has to trim its 2013 revenue and EBITDA guidance range of 4-5 percent growth, conceding that the expected delay will impact revenues up to €18 million (US$23.86 million) in 2013.
The satellites that will be delayed are: Astra 2E from June to September on Proton; SES-8 from June to October on Falon-9; and Astra 5B from September to December on Ariane. The launches were delayed after the crash of a Russian Proton rocket earlier this month, setting back future take-offs.
SES said its European revenue, on a constant FX basis, decreased by 3 percent to €454.6 million (US$602.69 million), the comparative period having included €42.6 million (US$56.47 million) of revenue from analogue transmissions in Germany which ended on 30 April 2012. Earnings this year have been capped by the ending in April last year of analogue broadcasts to Germany.
When excluding analogue, SES said the year-on-year comparison showed growth of €28.4 million (US$37.69 million), an increase of 6.7 percent, primarily driven by new business on 12 transponders and HD+. Available satellite capacity increased by 12 transponders compared to H1 2012, added by SES-5 at the 5°E orbital position. The overall utilisation rate in the Europe stood at 82 percent at the end of June.
North American revenue increased by 5.9 percent to €203.1 million (US$269.56 million). Available satellite capacity reduced by 4 transponders compared to H1 2012, due to the payload reduction on AMC-16 during the second half of 2012. Utilized capacity reduced by 17 transponders, including the 4 transponders on AMC-16, compared to the prior year period, resulting in a utilization rate of 74 percent. SES said average revenue per utilized transponder remains stable.
International revenue increased by 9.3 percent over first half of 2012 to €252.8 million (US$335.26 million), as new capacity addressing emerging markets was successfully commercialized. Available satellite capacity increased by 74 transponders compared to H1 2012. The capacity growth was driven by the new capacity on SES-5 (+52) and the relocation of NSS-7.
The total SES group transponder utilisation rate at the end of June was 75.5 percent, representing 1,084 of the 1,436 transponders commercially available.
SES currently broadcasts 5,300 television channels from 53 satellites.
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- SES Increases Reach to 276 Million TV Homes Worldwide
- Interview with Thomas Wrede, VP-Reception Systems of SES
- SES' HD+ Platform Now Exceeds one million Paying Households
- SES posts 5.5% rise in revenue to Euro 1.82 billion in 2012
