[SatNews] SES S.A. (NYSE Euronext Paris and Luxembourg Stock Exchange: SESG) has reported financial results for the six months ended 30 June 2013. The financial highlights include:
- Revenue of EUR 910.5 million (+2.1 percent)
- Revenue at constant exchange rate (FX) grew by 7.2 percent, excluding German analog impact
- EBITDA of 662.0 million euros (-0.5 percent)
- EBITDA at constant FX grew by 6.4 percent, excluding German analogue impact
- EBITDA margin of 72.7 percent (H1 2012: 74.6 percent) Infrastructure EBITDA margin of 83.2 percent (2012: 83.6 percent)
- Operating profit was flat at 408.6 million euros (H1 2012: EUR 411.5 million)
- Profit of the group 268.0 million euros (H1 2012: EUR 298.7 million)
- Earnings per A-share of EUR 0.67 (H1 2012: EUR 0.74)
- Closing net debt / EBITDA multiple of 3.07 (H1 2012: 3.07)
- Contract backlog of 7.1 billion euros (H1 2012: EUR 6.8 billion)
Romain Bausch, President and CEO, said, “SES is growing in all markets. Although the German analog switch-off in April 2012 limits the comparison with the prior year period, the underlying growth has accelerated. We launched, and will shortly bring into service, SES-6, an important satellite supporting our 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.
“Our investment in O3b Networks has also passed an important milestone, with the successful launch of its first four satellites. We eagerly await the launch in September of the next four spacecraft, allowing for the commercial operations to begin prior to the end of the year.
“SES has three more satellite launches scheduled for 2013, each of which contributes new capacity and will accelerate revenue growth in the second half of the year in the emerging markets where we are successfully commercialising this capacity. The 2013 revenue and EBITDA guidance range of 4-5 percent growth provided with the FY 2012 results announcement was based on the launch schedule as known in February. While all other assumptions on which the guidance is based remain unchanged, the dates of these satellite launches will now be later than foreseen. These schedule movements are expected to have a timing impact on revenue of up to EUR 18 million in 2013. The project economics and returns on these satellite programmes remain unaffected, consistent with the long term nature of our business.
“SES is now entering a period in which capital expenditure will reduce significantly, even while additional growth investments are pursued. This, coupled with rising revenue and EBITDA, will deliver strong growth in free cash flow, which may be applied to further investments and acquisitions and/or be returned to shareholders.”
