SES S.A. announced solid financial results for the nine and three months ended 30 September 2018 with group revenue growing, fuelled by strengthening double-digit growth at SES Networks.
Key financial highlights
Reported revenue of EUR 1,469.4 million (YTD 2017: EUR 1,527.2 million), up 0.4% at constant FX(1)
Underlying revenue(2) of EUR 1,445.6 million; up 2.1%(1) (SES Video: -2.8%(1,2) and SES Networks +13.6%(1,2))
YTD 2018 EBITDA margin of 63.1% (YTD 2017: 65.1%); 63.8% excluding restructuring charge of EUR 9.7 million
Net profit attributable to SES shareholders of EUR 303.7 million (YTD 2017: EUR 394.5 million)
Free Cash Flow before financing activities up 29.2% to EUR 593.0 million
On track to deliver FY 2018 and FY 2020 financial outlook
Steve Collar, President and CEO, commented: “Our focus on execution continues to generate strong financial performance, delivering growth in absolute and underlying revenue, and we remain on track to deliver on our year-end financial outlook.
SES Networks has again demonstrated that it is the growth engine for our business with underlying growth of 14% year-to-date and almost 20% in Q3 2018. For the first time in a number of years, all three of the SES Networks’ business verticals delivered growth this quarter, including a positive contribution from Fixed Data. To reinforce the positive contribution from Fixed Data, we have delivered a major turn-key project in Papau New Guinea in record time in the quarter, underscoring our capabilities as an end-to-end managed service provider, while also concluding an important partnership agreement with IBM, strengthening my belief that Global Cloud Connectivity, and integration with Cloud Service Providers, will be an important driver of revenue and growth for SES in the future.
SES Video has signed important renewals and new business this quarter with now 96% of 2018’s expected total revenue secured, including an important renewal with Channel 4 in the U.K. Video Services contributed positively in Q3 with growing traction for our MX1 360 platform. International video distribution remains challenged with some platforms struggling to achieve market traction and strong competition for all new platforms. We remain focused on growth opportunities while reinforcing our core neighbourhoods that are among the best and most penetrated DTH neighbourhoods in the world.
Finally, we continue to make strong progress with our C-band initiative in the U.S., aligning our proposal with the leading continental U.S. satellite services operators, founding the C-band Alliance (CBA) and hiring experienced U.S. executives to run the consortium. In comments to the FCC’s NPRM due next week, the CBA will confirm on behalf of its members that up to 200 MHz of mid-band spectrum could be cleared to support 5G wireless deployment nationwide in the U.S. while protecting the important broadcast and other communities that we serve today. I am increasingly persuaded that our market-based proposal is the best way to facilitate a leading position for the U.S. in 5G and is the only way to repurpose spectrum in a timeframe consistent with the stated goals of the FCC.”