Luxembourg satellite company SES S.A. today announced its half-year financial results for the six months ended 30 June 2021.
SES reported a solid first-half performance delivering revenue of €875 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of €544 million.
Steve Collar, CEO of SES, commented: “Our strong start to 2021 continued into the second quarter providing confidence to improve the low end of our adjusted EBITDA outlook on the back of solid execution and laser focus on reducing cost".
More specifically, SES saw a 5% year-over-year reduction in recurring operating expenses supporting a higher year-over-year adjusted EBITDA margin (62%). The company also posted a 19% year-over-year reduction in net interest expense contributing to 35% year-over-year growth in adjusted net profit of €152 million.
In addition, over 90% of 2021 revenue outlook (€1,760-1,820 million) was already under contract. The adjusted EBITDA outlook for the full year 2021 improved to €1,080-1,100 million (from €1,060-1,100 million).
"The lasting value of our video business is reflected in the improved trajectory, the important long-term renewals at our core neighbourhoods, increased penetration of HD TV channels and new paying subscribers for HD+ in Germany. Excitingly, in H2 2021, we will be expanding and enhancing our HD+ portfolio with the extension onto mobile devices and IP-enabled non-satellite homes", continued Steve Collar. "Networks continues to perform well notwithstanding the COVID-impacted environment, notably in government, reflecting the strong demand for our unique multi-orbit resilient solutions. With O3b mPOWER still over a year away from commercial launch, we have secured over $300 million in backlog from major cruise brands which underscores the compelling combination of high throughput and high flexibility of the constellation".
The SES CEO concluded: "C-band clearance remains fully on track. The recent issuing of C-band licences by the FCC is a notable milestone towards initiation of the reimbursement process. Meanwhile, we have returned €275 million of cash to shareholders this year underscoring our commitment to delivering sustained and attractive returns for our shareholders”.