http://www.businesswire.com/news/home/20091022006838/en
LUXEMBOURG--(Business Wire)--
SES S.A., the pre-eminent worldwide satellite operator, (Paris:SESG)
(LuxX:SESG), reports on the financial performance in the nine months to 30
September 2009.
HIGHLIGHTS
* Reported revenue up 5.4% to EUR 1,259.7 million (2008: EUR 1,194.9 million)
* Recurring1 revenue of EUR 1,259 million, an increase of 1.8% over the prior
year period
* Solid infrastructure revenue growth of 4.2%
* Services revenue decline of 3.6%
* Reported EBITDA rose 8.2% to EUR 901.1 million (2008: EUR 832.9 million)
* EBITDA margin improved to 71.5% (2008: 69.6%)
* Industry-leading infrastructure EBITDA margin of 83.3%
* Recurring EBITDA of EUR 919 million, up 4.3% over the prior year period
* Operating profit increased 5.8% to EUR 537.5 million (2008: EUR 507.8 million)
* Profit of the group was EUR 364.3 million (2008: EUR 338.8 million)
* Earnings per share rose 8.2% to EUR 0.92 (2008: EUR 0.85)
Romain Bausch, President and CEO of SES, commented:
" SES delivered a solid core infrastructure performance, underlining the
resilience of our business model. EBITDA growth was in line with our
expectations, while top line revenue progression was reduced due to timing of
revenue recognition on certain large service contracts.
A number of new contracts were signed in the period, covering the entire range
of our business activities, including HD TV, Direct-To-Home television in Africa
and in Poland, as well as further developing satellite internet connectivity
through our ASTRA2Connect application.We now look forward to the imminent launch
of the NSS-12 satellite, carrying replacement and important new capacity for the
Indian Ocean Region.
For 2010 and beyond, we foresee continued growth and attractive levels of
profitability."
1 "Recurring" is a measure designed to represent underlying revenue / EBITDA
performance by removing currency exchange effects, eliminating one-time items,
considering changes in consolidation scope and excluding revenue / EBITDA from
new business initiatives that are still in the start-up phase.
Q3 2009 Financial Review
Third quarter reported revenue rose 2.4% (versus prior) to EUR 416.3 million,
while a continued focus on cost control, coupled with the achievement of
targeted efficiencies arising from the SES AMERICOM-NEW SKIES combination
contributed to the 4.0% rise in reported EBITDA to EUR 294.1 million. The group
EBITDA margin for the quarter was 70.6%, with an infrastructure EBITDA margin of
82.0%. Operating profit remained flat at EUR 177.6 million compared to the prior
year period. The favourability versus prior year, driven by the rise in EBITDA,
was partly diluted by the additional depreciation on new satellites and the
accelerated depreciation on AMC-4.
Net financing charges were lower than in the prior year period, mainly
reflecting lower interest rates on a marginally increased average debt level and
foreign exchange gains. Profit of the group, at EUR 118.8 million, was ahead of
the prior year period by 15.3% driven by the reduced net financing charges.
Net debt at the period end was EUR 3,642.0 million, delivering a Net Debt /
EBITDA ratio of 3.12 times, well under the self-imposed limit of 3.3 times.
Operations Review
Infrastructure activities developed well during the quarter, although top line
growth was negatively affected by the relative weakness of the U.S. dollar in
the period. In the quarter SES commercialised 20 additional transponders across
the fleet, raising the group transponder utilisation to 82.2%.
Satellite operations were nominal during the quarter. No satellites were
launched in the quarter, however preparations are well advanced for the launch
of the NSS-12 satellite, slated for launch on 29 October. NSS-12 will deliver a
mix of DTH, VSAT and telecom applications to Europe, Africa, the Middle East,
India, Central Asia and Australia.
SES ASTRA
In Europe, SES ASTRA signed an agreement with ProSiebenSat.1 to launch three HD
TV channels on ASTRA's new HD+ platform, for the German market. The
transmissions will start early 2010, and complement the HD transmissions of RTL
and VOX which are scheduled to start in November 2009.
Canal Digitaal further expanded its offering for the Dutch market with the
launch of new HD channels broadcast from SES ASTRA's increasingly popular DTH
orbital position at 23.5 degrees East. This expansion is facilitated by the
availability of the inexpensive "duo LNB", part of the consumer reception
equipment, which enables the reception of transmissions from two adjacent
orbital positions and thus an enhanced channel line-up.
The Polish public television broadcaster Telewizja Polska (TVP) has launched a
free-to-air platform on ASTRA and has extended its satellite capacity contracts
for the use of two transponders at ASTRA`s main orbital position 19.2 degrees
East.
ASTRA2Connect continued to develop its market penetration, with new agreements
signed for pan-European broadband via satellite, for Poland, and for the
European maritime market. An agreement was signed with Euroskypark, which will
commercialise the service for energy, transport and security data management
applications. SES sees the market for such services continuing to develop, and
will continue to commercialise the service via its available satellite capacity.
The ASTRA2Connect service now supports over 50,000 subscribers across Europe.
ASTRA2Connect expanded its satellite-based broadband service to Africa through
an agreement with Intersat Africa, a leading provider of satellite-based
internet services on the continent. The service, which will start in January
2010, will be offered to households, small and medium enterprises as well as
schools across East and Central Africa, using capacity on the NSS-12 satellite.
At the new orbital position of 31.5 degrees East, German IP services provider
InSat contracted one transponder for backbone services for the Eastern European,
Middle Eastern and Caucasus regions. The capacity contracted at 31.5 degrees
East now totals five transponders, including the four transponders contracted by
SatGate.
SES WORLD SKIES
In September, SES introduced SES WORLD SKIES. WORLD SKIES has an expanding fleet
of 24 satellites within the 40-satellite SES fleet, six additional spacecraft
slated for launch over the next two years, 350 employees and more than 550
full-time customers worldwide. This new unit combines the strong reputation for
excellence and North American presence of AMERICOM with the agility and global
reach of NEW SKIES in a single, unified organisation which complements that of
SES ASTRA, with its leadership position in the European markets.
Outside the European markets, SES WORLD SKIES made good progress. A notable
development area has been West Africa, where agreements were signed for DTH,
telecommunications services and IP backbone applications.
Pathfinder Communications signed a multi-year contract to deliver its Infinity
TV package over the ASTRA 2B satellite to homes throughout Nigeria. Pathfinder
has secured two Ku-band transponders to deliver its premium DTH line up,
offering 45 channels of movies, music, sports, lifestyle, news and children`s
programming. SES WORLD SKIES is also providing satellite IP backhaul across
teleports in London and Lagos, Nigeria.
Netcom Africa is expanding its delivery of telecom and broadcast television
services throughout Nigeria and West Africa. Augmenting its existing capacity in
Ku-band, Netcom is meeting rising demand for its broad range of telecom and
broadcast television services in Nigeria and the West African region.
Also in Nigeria, Galaxy Backbone signed a multi-year agreement for two
transponders for the delivery of a broad range of information and communication
technology (ICT) services to rural and remote government offices, schools and
hospitals in communities throughout Nigeria.
SES WORLD SKIES also announced a multi-transponder deal with Artel, supporting
growing U.S. government demand for end-to-end communications networks throughout
Europe, the Middle East and Asia.
Artel will use four full Ku-band transponders on the ASTRA 3B satellite, set to
launch early next year, to provide the U.S. Government with broadband, IP voice,
data and video solutions across a variety of regional operations.
Outlook and Guidance
Full year 2009
Recurring infrastructure revenue will deliver continued healthy growth well
within the total recurring revenue guidance range of 3-4%. Overall recurring
revenue is expected to result in a growth of around 1.5% due to some volatility
in the services activities. Infrastructure growth is driven by a favorable
supply/demand outlook, the strength of the new business pipeline, and new
capacity being launched to satisfy market needs. Full-year revenue from services
activities is expected to be lower than in 2008 due to lower equipment sales and
delayed revenue recognition on certain large projects.
The infrastructure segment continues to deliver EBITDA margins above 82%. At the
EBITDA line the impact of the reduced revenue contribution by services
activities is limited due to the inherently lower EBITDA margins generated by
these activities and continued cost management.
2010 to 2012
SES expects a compound annual growth rate for recurring revenue of 5% despite
the termination of analogue DTH transmissions in Germany, the bulk of which is
expected to occur in 2012. This topline growth translates into a corresponding,
recurring EBITDA growth.
In respect of all other key metrics, SES guidance is reiterated.
SUMMARY FINANCIAL HIGHLIGHTS (in EUR millions)
1.CONSOLIDATED INCOME STATEMENT
Q3, 2009 Q3, 2008 % Year-to- Year-to- %
date, date,
2009 2008
Revenue 416.3 406.4 + 2.4% 1,259.7 1,194.9 + 5.4%
Operating expenses (122.2) (123.7) + 1.2% (358.6) (362.0) + 0.9%
EBITDA 294.1 282.7 + 4.0% 901.1 832.9 + 8.2%
Depreciation & Amortisation (116.5) (104.4) - 11.6% (363.6) (325.1) -11.8%
Operating profit 177.6 178.3 - 0.4% 537.5 507.8 + 5.8%
Net financing charges (35.2) (54.7) + 35.6% (92.5) (114.1) + 18.9%
Profit before tax 142.4 123.6 + 15.2% 445.0 393.7 + 13.0%
Income tax expense (23.0) (20.1) - 14.4% (79.7) (53.9) -47.9%
Profit after tax 119.4 103.5 + 15.4% 365.3 339.8 + 7.5%
Share of associate`s results (0.3) (0.1) n.m. -0.4 -0.6 n.m.
Minority interests (0.3) (0.4) n.m. -0.6 -0.4 n.m.
Profit of the group 118.8 103.0 + 15.3% 364.3 338.8 + 7.5%
2.QUARTERLY DEVELOPMENT
2009 Q1 Q2 Q3 Q4 YTD
Revenue 423.9 419.5 416.3 -- 1,259.7
Operating expenses (115.0) (121.4) (122.2) -- (358.6)
EBITDA 308.9 298.1 294.1 -- 901.1
Depreciation & Amortisation (119.2) (127.9) (116.5) -- (363.6)
Operating profit 189.7 170.2 177.6 -- 537.5
3.ANALYSIS BY PRIMARY GEOGRAPHIC SEGMENT
Year-to-date, Q3 2009 SES SES WORLD SES & other Elimination Total
ASTRA SKIES participations
Revenue 732.0 529.3 -- (1.6) 1,259.7
Operating expenses (201.3) (134.6) (24.3) 1.6 (358.6)
EBITDA 530.7 394.7 (24.3) -- 901.1
EBITDA margin 72.5% 74.6% -- -- 71.5%
Depreciation & Amortisation (162.3) (201.0) (0.3) -- (363.6)
Operating profit 368.4 193.7 (24.6) -- 537.5
4.ANALYSIS BY SECONDARY BUSINESS SEGMENT
Year-to-date, Q3 2009 Infrastructure Services One-time Other operations / Reported total
items*
Elimination
Revenue 1,087.4 261.0 1.1 (89.8) 1,259.7
EBITDA 905.5 30.3 (10.4) (24.3) 901.1
EBITDA margin 83.3% 11.6% -- -- 71.5%
* Start-up costs and non-recurring items
5.TRANSPONDER UTILISATION AT END OF PERIOD
Transponder numbers (physical) 31 Mar 30 Jun 30 Sep 31 Dec
ASTRA Utilised 262 263 270
ASTRA Available 310 318 318
ASTRA% 84.5% 82.7% 84.9%
AMERICOM Utilised 368 359 364
AMERICOM Available 469 469 469
AMERICOM % 78.5% 76.5% 77.6%
NEW SKIES Utilised 250 264 272
NEW SKIES Available 326 314 315
NEW SKIES % 76.7% 84.1% 86.3%
GROUP Utilised 880 886 906
GROUP Available 1,105 1,101 1,102
GROUP % 79.6% 80.5% 82.2%
Additional information is available on our website www.ses.com
PRESS / ANALYST TELECONFERENCES
A press call will be hosted at 11.00 CET today, 23 October 2009. Journalists are invited to call the following numbers five minutes prior to this time.
Belgium +32 (0)2 789 2125
France +33 (0)1 70 99 42 77
Germany +49 (0)30 5900 24903
Luxembourg +352 342 080 8654
UK +44 (0)20 7138 0826
Confirmation Code: 3453365
A call for investors and analysts will be hosted at 14.00 CET today, 23 October 2009. Participants are invited to call the following numbers five minutes prior to this time.
Belgium +32 (0)2 400 3463
France +33 (0)1 70 99 42 73
Germany +49 (0)89 2030 3239
Luxembourg +352 342 080 8570
UK +44 (0)20 7138 0815
USA +1 718 354 1359
Confirmation Code: 9819046
A presentation, which will be referred to in each call, will be available for download from the Investor Relations section of our website www.ses.com
A replay will be available for one week on our website: www.ses.com
Disclaimer / "Safe Harbor" Statement
This presentation does not, in any jurisdiction, and in particular not in the
U.S., constitute or form part of, and should not be construed as, any offer for
sale of, or solicitation of any offer to buy, or any investment advice in
connection with, any securities of SES nor should it or any part of it form the
basis of, or be relied on in connection with, any contract or commitment
whatsoever.
No representation or warranty, express or implied, is or will be made by SES,
its directors, officers or advisors or any other person as to the accuracy,
completeness or fairness of the information or opinions contained in this
presentation, and any reliance you place on them will be at your sole risk.
Without prejudice to the foregoing, none of SES, its directors, officers or
advisors accept any liability whatsoever for any loss however arising, directly
or indirectly, from use of this presentation or its contents or otherwise
arising in connection therewith.
This presentation includes "forward-looking statements". All statements other
than statements of historical fact included in this presentation, including,
without limitation, those regarding SES`s financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to SES products and services) are forward-looking
statements. Such forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of SES to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding SES and its subsidiaries and affiliates, present
and future business strategies and the environment in which SES will operate in
the future and such assumptions may or may not prove to be correct. These
forward-looking statements speak only as at the date of this presentation.
Forward-looking statements contained in this presentation regarding past trends
or activities should not be taken as a representation that such trends or
activities will continue in the future. SES, its directors, officers or advisors
do not undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
SES S.A.
Investor Relations
Mark Roberts, +352 710 725 490
Mark.Roberts@ses.com
or
Media Relations
Yves Feltes, +352 710 725 311
Yves.Feltes@ses.com
Copyright Business Wire 2009
