SES announced its financial results for the nine-month period of 2021. The company’s solid performance delivered revenue of €1.3 billion and adjusted EBITDA of €823 million. Over 95% of the FY 2021 revenue outlook is also already under contract.
Commenting on the YTD results, Steve Collar, CEO of SES, said, “Our laser focus on execution has delivered another solid quarter and we remain fully on track to deliver on our FY 2021 group revenue and EBITDA outlook. The strength and resilience of our Video business are reflected in the improved FY 2021 outlook on the back of important renewals and new business signed across our core neighborhoods, and the continued positive momentum of our HD+ platform in Germany. Our Networks business is continuing to perform well against the backdrop of an extended COVID environment with strong year-on-year growth in Government now complemented by growing quarterly run-rate revenue in Fixed Data and Mobility, where we are starting to see a recovery in cruise and new bandwidth demand from our aeronautical customers.”
The successful launch of SES-17 has been an important step in realizing SES’ vision of a seamless, integrated, and cloud-enabled network of the future, the CEO pointed out. “SES-17 will start to generate incremental revenue and EBITDA for SES in the second half of 2022. This will soon be joined in orbit by our second-generation Medium Earth Orbit constellation, O3b mPOWER, with launches starting early next year and the constellation on track for the start of service before the end of 2022.”
Showing significant progress in the delivery of value creation through growth investments and C-band execution, Steve added, “I am delighted to report that we have completed Phase One C-band clearing in the US, comfortably ahead of the December 2021 deadline, and we expect to receive the first $1 billion of accelerated relocation payments within the coming months. We have started to receive cost reimbursement from the Clearing House and we are on track to complete Phase Two clearing by December 2023, triggering an additional $3 billion of accelerated relocation payments.”
Remarkably, the company’s adjusted net profit improved by 17.2% year-on-year to €225 million including the positive combination of the lower recurring operating expenses, lower depreciation, and amortization expenses (down 7.3% year-on-year), and a 21.0% reduction in the net interest expense.
FY 2021 revenue outlook is expected to be between €1,760-1,800 million, including €1,030-1,040 million for Video and €720-750 million for Networks.