Steady Q3 growth for SES profits and revenues
| 31 October 2014
Leading satellite operator SES has announced a steady set of financial results for the nine months and three months ended 30 September 2014.
sesFor the three-month period, SES reported third quarter revenue of €467.7 million, flat on a reported basis compared to the prior year period, although it was 1.7% higher at constant FX. European and International business offset weaker performance in North America and there were no revenues from the sale of transponder capacity to Eutelsat during the third quarter. European operations recorded growth of 6.2% in revenue at constant FX, and International growth year-on-year was 5.4% at constant FX, with continued contracting of new capacity in the region.
This meant that year-to-date revenue totalled €1.406.6 billion, up 4.7% at constant FX over the prior year, driving and EBITDA of €1.049.7 billion, up 6% at constant FX over the prior year. EBITDA margin grew slightly to 74.6%.
SES revealed that it would be expanding core DTH business by securing rights to two new orbital positions in Brazil and that five new satellites will be launched by the end of 2017, including three satellites to expand coverage in Asia-Pacific and Latin American markets. The company has a fully protected contract backlog worth €7.3 billion.
Commenting on the results, CEO Karim Michel Sabbagh said: "In the year to date, SES has delivered strong growth in Western Europe and International markets, complemented by advances in key target markets and business verticals. The procurement of SES-11, which we announced in September 2014, extends our long-standing strategic partnership with EchoStar. HD+ in Germany has just celebrated its five-year anniversary, with its reach growing to almost three million households. O3b Networks, a company in which SES has a significant equity interest, entered into commercial service on 1 September 2014 and is on track to activate the majority of the 30 or so committed clients by the end of the year. We are focused on delivering growth through the commercialisation of recently launched high quality capacity in different regions, while maximising the benefits that our financial and operational strengths allow ... Our strategy to build new DTH neighbourhoods is gaining momentum and innovation continually delivers new opportunities to support our long-term profitable growth."