SES inks capacity deals as fiscal year gets off to slow start


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Joseph O'Halloran

| 29 April 2016




Leading satellite operator SES says that the execution of its strategy has delivered solid financial results over the first quarter of its current financial year.



SES 10 satellite HFor the three months ended 31 March 2016, SES posted revenue of €481.6 million, up 0.8% year-on-year, contributing to EBITDA of €356.2 million, in line with prior year but down 2.9% at a constant currency exchange rate. EBITDA and infrastructure margins were 74.0% and 84.2% respectively, virtually unchanged on a yearly basis.

The quarter saw a number of key developments such as an increase in HDTV penetration to 32.5%, up 2.5 percentage points annually, and the signing of a capacity agreement with Eurovision to broadcast the Rio 2016 Olympics. As part of the agreement, Eurovision will lease several transponders on the NSS-806 satellite, located at the prime orbital position of 47.5° West, between July and August 2016.

Commenting on the quarter, SES Karim Michel Sabbagh, president and CEO, said: “SES has made a productive start to 2016, developing the foundations for sustainable growth. We have continued to execute on our strategy of globalisation ... We continued to deliver good growth in the video vertical in the quarter, complemented by strong growth in mobility, where significant long-term contracts have been signed with leading in-flight connectivity providers. The positive momentum in new business and renewals contributed to the growth in SES’s strong contract backlog, which now stands at €7.6 billion. Furthermore, the successful launch of SES-9 on 4 March 2016 enables its contribution as a key growth driver as the year progresses.”