The FINANCIAL — SES S.A. announced financial results for the six months ended 30 June 2017.
Delivering return to growth in revenue and profitability
• Revenue EUR 1,048.7 million, up 9.6% over prior period (down 1.5% like-for-like )
• EBITDA margin 65.5% and operating profit margin 29.2% (H1 20161: 66.4% and 31.3% respectively)
• Net profit attributable to SES shareholders of EUR 275.5 million, up 21.2% over prior period
• Net debt to EBITDA ratio 3.24 times (H1 2016: 2.03 times), in line with SES’s financial framework
• Substantial contract backlog of EUR 7.5 billion (H1 2016: EUR 7.3 billion)
Improving trend in SES Video and strong growth in SES Networks delivers stable verticals development
• Improving trend in SES Video with Q2 2017 at -1.9% (YOY), compared with Q1 2017 at -4.2% (YOY)
• Stable outlook for SES Video, excluding short-term impact of launch schedule and satellite health changes
• Improved business mix and differentiated solutions driving 7.5% (YOY) growth in SES Networks
• Development agreement signed with Boeing to deliver next generation technology innovation
Karim Michel Sabbagh, President and CEO, commented: “SES continues to make a positive start to 2017 and is well positioned to generate sustained growth and improving returns.
SES Video continues to deliver differentiated services and enhance the viewing experience, with the proportion of integrated solutions nearly doubling versus last year. The improving trend in Q2 2017 underpins our stable outlook for 2017 before the temporary impact of changes due to launch schedule and satellite health, which are expected to result in a slight decline.
SES Networks’ distributed network capabilities are driving strong growth across our data-centric verticals, expanding with global fixed data, aeronautical, maritime and government clients. The development agreement, signed today, with Boeing is the latest milestone in delivering next generation technology that will form the basis for SES’s future network and will expand the future addressable market.”
At 30 June 2017, SES’s fully protected contract backlog was EUR 7.5 billion (30 June 2016: EUR 7.3 billion). The substantial backlog is the result of the successful commercial activity across SES’s two natural business units – SES Video and SES Networks.
SES Video: 67% of group revenue (H1 2016: 70%)
• Reported revenue up 5.4% to EUR 699.7 million (-3.1% like-for-like)
• Improving trend with Q2 2017 at -1.9% (YOY) versus -4.2% (YOY) for Q1 2017
• Nearly doubling reported revenue from integrated media solutions
As expected, a significant improvement in the year-on-year (like-for-like) development between Q1 2017 (-4.2%) and Q2 2017 (-1.9%) led to an overall reduction of 3.1% for H1 2017, compared with the prior period. This resulted from the impact of higher periodic revenue, predominantly in Q1 2016, beginning to progressively normalise over the course of 2017. Q2 2017 benefited from the signing of new agreements covering the existing fleet and recently launched capacity, according to SES.