With the release of the company's nine and three months financial results that ended on September 30, 2017, Karim Michel Sabbagh, President and CEO, commented that SES has continued to make steady progress in executing the firm's strategy and investing for the future in growth markets where there is a competitive advantage.
He then added, "SES Video’s underlying business remains stable with attractive long-term contracts in prime neighborhoods, and additional growth potential in integrated platforms and services. This is demonstrated by the recently announced multi-year capacity renewal with Sky Deutschland and the addition of exclusive Eurosport content to our HD+ platform in Germany.
"SES Networks has established dedicated teams focused on the key, fast-growing network segments where we have a strong, differentiated solution based on our unique combination of GEO-MEO and terrestrial networks. As we continue to scale up our activities, we are developing the business opportunities that optimally fit our differentiated capabilities in terms of scope and long-term growth. These opportunities require commensurate resourcing to realize.
"We have achieved a series of strategic wins towards the end of Q3 2017, demonstrating the impact of our strategy, and our goal is to continue to improve on execution and timing. The future value of these contracts is reflected in the substantial contract backlog of EUR 7.5 billion that we are reporting with these results.
"SES remains on track to deliver sustained and profitable medium-term growth. The recent announcement of O3b mPOWER builds on capabilities of the only successful non-geostationary broadband system to deliver the first global, multi-terabit satellite network and reinforces our position as the world’s leading satellite enabled solutions provider.”
Executing differentiated strategy to deliver return to sustained and profitable growth
- Revenue EUR 1,527.2 million, up 2.5% over prior period (down 4.0% like-for-like )
- EBITDA margin 65.1% and operating profit margin 29.4% (YTD 20161: 66.4% and 32.1% respectively)
- Net profit EUR 394.5 million (YTD 2016: 328.8 million excluding one-off gain related to the consolidation of O3b; and EUR 824.0 million including this gain)
- Net debt to EBITDA ratio 3.29 times (YTD 2016: 3.30 times), in line with SES’s financial framework
Enabling customers’ success with the most flexible and scalable satellite-based solutions
- SES Video revenue -3.8% (like-for-like); underlying revenue -0.9% with improving trend in Q3 2017
- Substantial contract backlog of EUR 7.5 billion, including contribution from long-term Sky Deutschland renewal
- Total TV channels +6% (YOY) and HDTV channels +7% (YOY) with growth in both developed and developing markets
- Focus on differentiated managed services delivering 2.2% (YOY) growth in SES Networks’ revenue
- Improving future business mix and growth across network-centric verticals with new contract wins
- Significantly expanding future addressable markets in network-centric verticals with O3b mPOWER investment