|By Business Wire||
|November 9, 2012 02:13 AM EST||
SES S.A. (Paris:SESG) (LuxX:SESG) reports financial results for the nine months and three months ended 30 September 2012.
YTD Revenue of EUR 1,359.6 million
- An increase of 6.1% over the prior year, +1.6% at constant exchange rates (“constant FX”)
YTD EBITDA of EUR 1,012.0 million
- An increase of 6.4% over the prior year, +1.8% at constant FX
- EBITDA margin of 74.4% (2011: 74.2%)
YTD Profit of the group EUR 456.4 million (2011: EUR 446.7 million)
- An increase of 2.2% over the prior year
- Closing net debt / EBITDA of 3.02 times (2011: 3.13 times)
Contract backlog at an all-time high of EUR 7.2 billion
- An increase from EUR 6.8 billion at end of June 2012
- EUR 1.3 billion of renewals and new contracts signed YTD
- 24 transponder long-term contract renewal by Canal+
- Six transponder contract renewal by the BBC
- SES-4 and SES-5 successfully launched and brought into service
- ASTRA 2F successfully launched and will enter commercial service later this month
Romain Bausch, President and CEO, commented:
“The financial results for the first nine months of 2012 are in line with our expectations. Despite the impact of the end of analogue TV broadcasting in Germany at the end of April, strong underlying growth has resulted in revenue growth of 1.6%, at constant FX. Excluding the German analogue impact, revenue growth was 7.5%. In the period, SES has successfully launched three spacecraft (SES-4, SES-5, ASTRA 2F), two of which have already entered service. New business and renewals have further increased our backlog of future contracted revenue to an all-time high of EUR 7.2 billion, underlining the confidence and trust that our customers place in us. Full year 2012 revenue and EBITDA growth is expected to be in line with guidance. SES also reiterates the 2012-2014 revenue and EBITDA CAGR guidance (at constant FX) of approximately 4.5%. Once again, SES has demonstrated the resilience of the satellite sector in the economic downturn.”
YTD Q3 2012 Financial Review
In the year to date, reported revenue increased by 6.1%, to EUR 1,359.6 million. On a constant FX basis, revenue rose 1.6% despite the significant impact of the switch-off of analogue transmissions in Germany at the end of April. The resulting absence of five months’ revenue from this source in the year to date was more than offset by the contributions of the Quetzsat-1 satellite, which delivered a full nine months of revenue, other capacity sales, services rendered with the SES-3 Ka-band payload, and growth of the European services business (principally HD+). Excluding the adverse impact of the analogue switch-off, underlying revenue growth was 7.5% at constant FX.
As reported, operating expenses increased by EUR 17.5 million, or 5.3%, to EUR 347.6 million, reflecting the stronger U.S. dollar. On a constant FX basis the increase year-on-year was held at EUR 3.2 million, or 0.9%. Whilst costs of sales rose in connection with the strong performance from services activities, this increase was largely offset both by lower underlying cost levels achieved through cost management activities in the infrastructure business, and the positive impact in 2012 of some one time expenses incurred in 2011.
Reported EBITDA grew by 6.4% to EUR 1,012.0 million, a 1.8% increase on a constant FX basis reflecting a leverage impact from the strong infrastructure business and related cost containment activities as well as absorbing the unfavourable impact from the analogue switch-off in Germany. The total EBITDA margin was 74.4% for the nine months, slightly ahead of the prior year level of 74.2%, with infrastructure delivering a strong margin of 83.8% (2011: 82.9%) and services delivering a margin of 14.2% (2011: 14.9%). Excluding the adverse impact of the analogue switch-off, EBITDA growth was 10.0% at constant FX.
Depreciation and amortisation charges rose 13.1% to EUR 386.3 million, an increase at constant FX of 7.4%, driven mainly by fleet additions and a first quarter impairment charge of EUR 3 million.
Operating profit rose 2.6% to EUR 625.7 million, a decrease at constant FX of 1.4% reflecting the increased depreciation charges on the enlarged fleet.
Year to date net financing costs were EUR 18.4 million higher than the prior year period, due to lower net foreign exchange gains and reduced capitalisation of interest. At net profit level a lower tax charge and the absence of the negative impact of discontinued operations in the prior year period, contributed to an increase of 2.2% to EUR 456.4 million.
Net Debt/EBITDA was 3.02 times compared to 3.13 times at 30 September 2011.
Q3 2012 Financial Review
Third quarter reported revenue increased by 8.7% to EUR 467.7 million, also benefiting from a stronger U.S. dollar. On a constant FX basis, revenue rose by 1.8% in comparison with the third quarter of prior year, reflecting the favourable development of both infrastructure and services activities, which more than compensated for the significant impact of the German analogue switch-off. The full contribution of QuetzSat-1 in the period was complemented by other infrastructure sales and services rendered with the SES-3 Ka-band payload. In addition, European services activities increased their contribution, principally driven by the strong growth of HD+ in Germany. Excluding the adverse impact of the analogue switch-off, underlying total revenue growth was 10.9%, at constant FX. Reported EBITDA increased by 8.4% to EUR 346.9 million, a 1.1% increase on a constant FX basis. The total EBITDA margin for the third quarter was 74.2% and remains robust.
Increased depreciation and tax expense in the quarter largely absorbed the favourable development of EBITDA, resulting in a moderate increase in the third quarter profit of the group to EUR 157.7 million.
The first nine months of 2012 have witnessed the successful launch of three satellites, two of which, SES-4 and SES-5, have now been brought into service.
SES’ 52nd satellite, ASTRA 2F, was successfully launched on an Ariane 5 rocket on 29 September and is presently undergoing in-orbit testing. The satellite carries Ku- and Ka-band payloads for the delivery of high-performance Direct-to-Home (DTH) and next generation broadband services. It is the first of a three-satellite investment programme (ASTRA 2E, 2F and 2G), that provides replacement and growth capacity for the UK and Ireland at the 28.2/28.5 degrees East neighbourhood. The new satellites in this neighbourhood will, as of October 2013, use additional frequency spectrum granted to SES by Media Broadcast. The new ASTRA 2F spacecraft provides Ku-band capacity for UK / Ireland DTH as well as for pan-European services and for Sub-Saharan Africa. Its Ka-band payload will allow SES Broadband Services to support download speeds of up to 20 Mbps. The spacecraft is expected to enter commercial service later this month. In a subsequent event occurring in October 2012, Eutelsat commenced arbitral proceedings against SES, seeking a declaration that SES cannot use such additional frequency bands granted by Media Broadcast without breaching an intersystem coordination agreement signed in 1999 between Eutelsat and SES. SES strongly disagrees with Eutelsat’s position and will vigorously defend its right to use these frequencies from October 4, 2013.
The Group transponder utilisation rate at the end of September was 72.6%, representing 1,045 of the 1,440 transponders commercially available. The reduction of the utilisation rate from 81.0% in the prior year period and from 77.0% in Q2, 2012, respectively, is largely related to the onset of new capacity mainly from QuetzSat-1, the YahLive payload on YahSat-1A, SES-4, SES-5 and NSS-7 and unfavourably impacted by the analogue switch-off in Germany and the end of cable contracts at 23.5°E.
European revenue, on a constant FX basis, was down 3.3% compared to the prior year period. Available satellite capacity increased by 44 transponders compared to the prior year period, with the new capacity on the Nordic beam of SES-5 complementing that added by two relocated satellites (ASTRA 1F and ASTRA 1N). Utilisation decreased by a net 12 transponders, as the end of analogue transmissions in Germany (32 transponders) and of cable contracts at 23.5°E (15 transponders) were largely compensated by new transponder contracts for DTH and other applications. A long term contract renewal extended the duration of Canal+’s entire capacity of 24 transponders at 19.2°E. SES also renewed a multiple transponder contract with the BBC. The capacity, a total of six transponders, has been contracted on a long term basis and will be used for services in both standard and high definition. The capacity will be hosted on the SES satellites positioned at the orbital position 28.2 degrees East. The overall utilisation rate in the region stood at 78.3% at the end of September, with transponder pricing remaining stable.
HD+, the platform for HD broadcast of German commercial TV channels, has continued to develop strongly. At the end of September 2012, there were 2,800,631 active HD+ households. Of these, 761,456 were paying customers of HD+. The balance are HD+ users in the initial 12-month free trial period. The company expects the number of paying households to exceed one million by the end of the year.
North American revenues, on a constant FX basis, increased by 4.7% compared to the prior year period. The increase against the prior year period principally relates to services rendered with the SES-3 Ka-band payload and Government contracts on third party capacity. Available satellite capacity reduced by 27 transponders due to satellite movements and payload adjustments. Utilised capacity reduced by 10 transponders compared to the prior year period as new business partially offset the reduction of capacity on the AMC-15 and AMC-16 spacecraft, resulting in a utilisation rate of 76.5%. As in Europe, pricing in the North America region remained stable.
International revenues increased by 9.4% over the comparable period in 2011 on a constant FX basis. At the end of September, an additional 173 transponders were available compared to last year. The increased figure resulted from new capacity on QuetzSat-1, SES-4 and SES-5, the relocation of NSS-7 to 340 degrees East, the activation of the YahLive payload on YahSat 1A and the relocation of AMC-3 to 67°W, as well as other fleet movements. Utilisation increased by 55 transponders compared to the prior year period, resulting in an overall utilisation rate of 67.6%. Average revenue per utilised transponder was stable.
SES operates a number of spacecraft which are susceptible to solar array circuit failures. During the quarter to 30 September, there were no events impacting the commercial capacity availability on those spacecraft.
Outlook and Guidance
The business outlook is for continued growth, in particular in the Western European TV markets and for a range of applications in the emerging markets that are the focus of SES’ capacity expansion. SES is well positioned to serve the demand in these regions.
SES’ year-to-date revenue and EBITDA growth of 1.6% and 1.8% respectively (at constant FX) meets company expectations. Full year 2012 revenue and EBITDA growth is expected to be in line with guidance. SES also reiterates the 2012-2014 revenue and EBITDA CAGR guidance (at constant FX) of approximately 4.5%.
SES’ results for the 2012 financial year will be announced on Friday, 22nd February 2013.
Condensed consolidated income statement
In euro millions
|Average US dollar exchange rate||1.2495||1.4388||1.2890||1.4167|
|Depreciation and amortisation expense||(132.7||)||(112.0||)||(386.3||)||(341.5||)|
|Net financing charges||(43.4||)||(44.2||)||(123.4||)||(105.0||)|
|Profit before tax||170.8||163.7||502.3||504.9|
|Income tax expense||(10.7||)||(4.4||)||(38.6||)||(41.3||)|
|Profit after tax||160.1||159.3||463.7||463.6|
|Share of associate’s results||(2.3||)||(4.3||)||(7.4||)||(7.9||)|
|Profit attributable to equity holders of the parent||157.7||154.6||456.4||446.7|
Quarterly development of operating results
|In euro millions||
|Average U.S. dollar exchange rate||1.4388||1.3641||1.3185||1.2991||1.2495|
Transponder utilisation by Regional Coverage
|In 36 MHz-equivalent||
|North America Utilised||307||302||296||301||297|
|North America Available||415||392||390||388||388|
|North America %||74.0%||77.0%||75.9%||77.6%||76.5%|
Revenue by Regional Coverage
(In euro millions)
|Q3 2012||Q3 2011||
At constant FX
(In euro millions)
|Q3 2012||Q3 2011||Change (%)||YTD Q3 2012||YTD Q3 2011||Change (%)|
Analysis by Business Segment
|In euro millions||
|YTD Q3 2012|
|YTD Q3 2011|
1 Unallocated Corporate charges
Additional information is available on our website www.ses.com
A call for investors and analysts will be hosted at 14.00 CET today, 9 November 2012. Participants are invited to call the following numbers five minutes prior to this time.
|Belgium||+32 (0)2 620 0137|
|France||+33 (0)1 70 48 01 63|
|Germany||+49 (0)69 2999 3285|
|Luxembourg||+352 2088 1429|
+44 (0)20 3450 9571
|USA||+1 646 254 3373|
A presentation, which will be referred to during the calls, 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 or 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’ 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 and its directors, officers and 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.
“The year of the cloud – we have no idea when it's really happening but we think it's happening now. For those technology providers like Zentera that are helping enterprises move to the cloud - it's been fun to watch," noted Mike Loftus, VP Product Management and Marketing at Zentera Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 05:15 PM EDT Reads: 4,262
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 05:00 PM EDT Reads: 4,592
It’s no news that microservices are one of the top trends, if not the top trend, in application architectures today. Take large monolithic applications which are brittle and difficult to change and break them into smaller manageable pieces to provide flexibility in deployment models, facilitating agile release and development to meet today’s rapidly shifting digital businesses. Unfortunately, with this change, application and infrastructure management is more complex due to size and technology c...
Jun. 3, 2015 05:00 PM EDT Reads: 399
IBM has acquired Blue Box Group, Inc., a managed private cloud provider built on OpenStack. Customers benefit from the ability to more easily deploy workloads across hybrid cloud environments. Financial details were not disclosed. Enterprises are seeking ways to embrace all types of cloud to address a wide range of workloads. Today's announcement reinforces IBM's commitment to deliver flexible cloud computing models that make it easier for customers to move to data and applications across cloud...
Jun. 3, 2015 05:00 PM EDT Reads: 653
The WebRTC Meetup, where WebRTC enthusiasts exchange ideas, is being held on Wednesday, June 10, from 7 pm – 9 pm at the 4th WebRTC Summit, June 9-11, 2015, at the Javits Center in New York City, NY. The WebRTC Meetup is being hosted by the New York WebRTC Developer Group. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 4th WebRTC Summit continues our tradition of delivering the late...
Jun. 3, 2015 05:00 PM EDT Reads: 666
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are bein...
Jun. 3, 2015 04:30 PM EDT Reads: 1,245
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, will investigate three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Jun. 3, 2015 04:19 PM EDT Reads: 351
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not ...
Jun. 3, 2015 04:00 PM EDT Reads: 1,099
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Jun. 3, 2015 04:00 PM EDT Reads: 2,231
"NuoDB is a transactionally consistent SQL database that does scale out, that does all the things you want in a cloud. If you want more transactional throughput, if you want higher availability if you want to run in multiple data centers this is a technology that can scale and still provide a single logical consistent database," explained Seth Proctor, CTO of NuoDB, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 3, 2015 04:00 PM EDT Reads: 5,027
Thanks to widespread Internet adoption and more than 10 billion connected devices around the world, companies became more excited than ever about the Internet of Things in 2014. Add in the hype around Google Glass and the Nest Thermostat, and nearly every business, including those from traditionally low-tech industries, wanted in. But despite the buzz, some very real business questions emerged – mainly, not if a device can be connected, or even when, but why? Why does connecting to the cloud cre...
Jun. 3, 2015 04:00 PM EDT Reads: 1,155
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
Jun. 3, 2015 03:45 PM EDT Reads: 1,765
SYS-CON Events announced today that MediaTek Labs will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. MediaTek Labs is a global ecosystem initiative supporting Wearables and Internet of Things device creation, application development, and services based around MediaTek chipset offerings. Developers can use the MediaTek LinkIt™ ONE development platform and the LinkIt ONE HDK to easily access the features and functions of the...
Jun. 3, 2015 03:45 PM EDT Reads: 857
IndependenceIT has been selected by nGenx to power Windows-based DaaS and application delivery on Google Compute Engine to support the delivery of GoldMine Cloud software. For independent software vendors (ISVs) like GoldMine, this expands the theater of operations to increase revenue opportunities while reducing software management and maintenance liabilities. IndependenceIT was selected by application and desktop pioneer, nGenx, to deliver its “Bring Your Own Cloud” strategy to GoldMine and o...
Jun. 3, 2015 03:30 PM EDT Reads: 719
ProfitBricks has an early preview of its new Docker hosting platform. The ProfitBricks Docker platform enables its customers to build fully-portable applications within the ProfitBricks cloud. Unlike other Docker platforms, ProfitBricks’ Docker provides developers and system administrators with a platform with dedicated resources that autoscales the Docker hosts. Early access customers will be able to utilize up to 2,500 CPU core hours as part of ProfitBricks’ early access Docker preview.
Jun. 3, 2015 03:30 PM EDT Reads: 627