SES S.A. has announced financial results for the nine months ended September 30, 2020. Solid performance with continued strong underlying growth across networks was recorded with networks revenue at +7.5% year-on-year(1,2). Meanwhile, Q3 2020 video revenue remained stable quarter-on-quarter.
Adjusted EBITDA of $1bn representing 62.6% margin with recurring operating expenses was reduced 3.7% year-on-year.
SES also said it is on track to deliver on FY 2020 financial outlook with over 97% of group revenue outlook ($2.1bn-$2.2bn) already contracted. The COovid-19 cost mitigations of around $58mn underpin Adjusted EBITDA outlook.
The operator said it is on track to clear US C-band by the stated deadlines and realise the full $4bn of accelerated relocation payments. Further, SES is building the multi-orbit ‘Network of the Future’ through launch and interoperability of SES-17 and O3b mPower.
SES is positioned to capture growth resulting from the projected three-fold increase in the addressable market with $500mn worth of contract backlogs secured across the programmes with commercial traction increasing as launch approaches.
SES has also partnered with Microsoft and Azure Orbital at the heart of ‘cloud-first’ strategy to transform service delivery, expand service offerings and enhance customer experience
Commenting on the financial results, Steve Collar, CEO of SES, said: “Our solid performance continued into the third quarter, despite ongoing COVID-19 headwinds, with sustained growth across Networks and stable revenue quarter-on-quarter in our Video business. We were delighted to announce a substantial extension of our relationship with Canal+ across three orbital locations and valued at over $270mn, as well as a meaningful extension of our strategic partnership with Microsoft as an Azure Orbital connectivity partner and satellite partner for Azure Modular Data Centres.
“We took measures early in the development of the Covid-19 pandemic to protect the bottom line and the benefits of these cost-saving measures are reflected in our resilient Adjusted EBITDA performance. Execution remains the priority with the business well placed to deliver on our full-year outlook.”
Collar further said: “We are executing strongly on the four transformational initiatives which, together with ongoing execution in the core of the business, will deliver substantial value for our shareholders. I am particularly pleased with the progress being made towards repurposing US C-band with the transition plan fully on track, the FCC auction due to start next month and deadline for realising the first relocation payment now only 13 months away. We have fully implemented measures to focus the business, simplify operations and unlock $46mn-58mn of annualised EBITDA savings from 2021. We have chosen not to pursue the separation of Networks within SES at this time in favour of driving strong operational focus within our video and networks businesses.”
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