SES releases YTD 2023 results

The company achieved year-on-year growth in all three of its main networks segments and secured important video renewals.

Global content connectivity solutions provider, SES has announced its financial results for the nine and three months ended 30 September 2023. The company’s networks revenue of €767m increased 5.0% year-on-year driven by growth in Mobility (+9.4%) Government (+4.2%) and Fixed Data (+2.3%) which included periodic revenue of €7m in Q1 2023.

Video revenue of €727m represented a reduction of 4.3%, compared with YTD 2022. Excluding €10m of periodic revenue which was recognised in Q1 2022, video was 3.2% lower year-on-year.

Adjusted EBITDA of €792m represented an Adjusted EBITDA margin of 53% (YTD 2022: 59% and 56% on a like for like basis). Adjusted Net Profit of €180m included a net foreign exchange (FX) gain of €17m (YTD 2022: gain of €87m), higher year-on-year capitalised interest, and lower year-on-year recurring income tax expense.

Commenting on the results, Ruy Pinto, CEO of SES, said: “We are pleased with a solid year to date financial performance and remain fully on track to deliver on our 2023 financial outlook. We achieved year-on-year growth in all 3 of our main Networks segments and secured important Video renewals which underpin the long-term cash generation and value of our broadcast business. Solid EBITDA performance underscores our focus on managing controllable costs across the business.”

SES confirmed that it had collected the full $3bn (pre-tax) in accelerated relocation payments from Phase II U.S. C-band clearing. With the clearing completed ahead of schedule, SES fully delivered on the objectives of enabling accelerated deployment of 5G services in the U.S.

The company confirmed the planned launch of its O3b mPOWER satellites 5 and 6 in early November 2023, from which commercial services are expected to begin from early Q2 2024. With the operations of this initial O3b mPOWER constellation, in combination with the existing O3b MEO constellation, SES expects it can support its currently signed O3b mPOWER customers, as well as future customers and market growth.

SES expects the impact of the O3b mPOWER delay (from end-2023 previously to early Q2 2024) to be in the order of mid-single digit percentage (assuming a constant FX rate, nominal satellite health, and nominal launch schedule) lower in terms of 2024 revenue and Adjusted EBITDA, before any potential mitigations, such as leveraging SES’s satellite fleet with its existing MEO and GEO satellites, and/or additional programmes in progress.

The company’s complete financial results can be viewed here.