SES Reports 'Solid First Half 2020' Results
Betzdorf, Luxembourg, August 7, 2020--Satellite operator SES reported 1st half 2020 results in line with expectations and continued underlying growth in Networks of +7.1% year-on-year and revenues of EUR 947.5 million, -1.5% decrease as reported with underlying revenue 2.4% lower than H1 2019.
Adjusted EBITDA was EUR 582.0 million, -2.3% as reported (-3.5% at constant FX) compared with H1 2019 and representing an Adjusted EBITDA margin of 61.4% including a 2.2% year-on-year reduction in recurring operating expenses.
SES' Networks business set to deliver long-term growth through deployment of SES-17 and an enhanced O3b mPOWER constellation. SES has allocated EUR 1.8 billion of growth CapEx (2020-2024), including four additional O3b mPOWER satellites, de-risking overall investment through launch resilience, enhanced launch cadence, improved constellation efficiency and meaningful expansion in coverage and throughput. An agreement was made with Boeing to collaborate in the development of commercially based solutions for government customers.
Steve Collar, CEO of SES, commented: “The business has performed well in the first half of the year, delivering solid revenue in challenging trading conditions, while the benefits of the proactive cost-saving measures that we took early in the development of COVID-19 are also seen in our H1 results. We were particularly pleased to sign a broad distribution agreement with BBC Studios during the quarter, underlining our ability to support premium customers across a range of satellite and terrestrial distribution methods as well as significant extensions with ProSieben in Germany and Austria. On the Networks side, we are seeing a pickup in our Government business after a slower first half, with a new and innovative use of the O3b constellation for the U.S. Government among a number of important deals won and signed in the second quarter."
"Notwithstanding the resilience that our business has shown in the first half of the year, we are not immune to the impact that global lockdowns are having on a number of the markets that we serve. We anticipate a slowdown in the pace of new business in the second half of the year and have updated our financial outlook for the full year in view of the challenges faced by a number of our customers, particularly in Mobility and Sports & Events. We were quick and early to initiate exceptional one-off cost reduction measures of EUR 40 - 60 million for 2020 to mitigate the impact of COVID-19 on our bottom line and are tracking well against this target. Looking beyond COVID-19, 2020 has seen us make great strides in our more than two-year effort to repurpose spectrum in the U.S. for 5G while protecting the broadcast communities that we serve. Following the FCC Report and Order in February and the subsequent decision by all operators to adopt accelerated clearing in May, we are executing strongly on all elements of our clearing and transition plan. We incorporate the financial impact of the C-Band project in our financials for the first time, including clear line of sight to almost USD 4 billion in accelerated relocation payments," Collar added.
See the full financial report here.
