SES accelerates restructuring with European ops consolidation | Satellite | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
As part of its ongoing Simplify & Amplify transformation programme, designed to position itself for future growth and deliver maximum value, satellite operator SES has revealed that it plans to restructure its operations worldwide including the consolidation of part of its European regional operations.
SES dishes 8May2020 lands
The programme was first announced in March 2020 after a disappointing financial year, especially for its video business. For the year ended 31 December 2019, SES reported group revenue of €1.984 billion, down 1.3% on an annual basis as reported and down 3.8% at constant financial exchange rates. The company admitted that revenue was below expectations as it missed a key contract in its video business which it said continued to respond to the ongoing evolution in media consumption with DTH and cable customers ‘right-sizing’ capacity leading to a decline of 7.8% in underlying revenue.

For the quarter ended 31 March 2020, SES reported total revenue of €478.9 million, in line with prior period on a reported basis but down 1.9% compared with the end of the first quarter of 2019 at constant current exchanges. Underlying revenues were €470.8 million, down 2.2% on a year-by-year, and EBITDA of €284.7 million represented a margin of 59.5%, inching back by almost a percentage point yearly. Q1 2020 underlying video distribution revenue was 8.2% lower at constant FX than the prior period.

The Simplify & Amplify programme comprises a series of strategic actions that the operator hopes will best deliver against its declared purpose and will see SES consolidating functions in fewer locations while enhancing sales and customer-facing activities in the markets served. As a result, SES plans to close its offices in Brussels, Central London, the Isle of Man, Warsaw and Zurich, redistributing activities in these locations to other offices in Kiev, Stockholm, Stockley Park in London and The Hague as well as its headquarters in Luxembourg.

In addition to consolidating SES’s global footprint and streamlining operating functions, other restructuring and delayering is underway including the removal of numerous open positions. SES has launched a voluntary phased retirement programme and is retraining and realigning resources internally towards high-value future market opportunities and to bolster its position in cloud, mobility and other emerging verticals. In aggregate, these changes will impact between 10% and 15% of its global employee base.

“In this rapidly evolving market, it is important that SES remains an agile business partner for our customers,” said SES CEO Steve Collar. “Simplify & Amplify is a transformational undertaking that will streamline our business, drive collaboration, and improve efficiency. We are making these changes thoughtfully, ensuring that, wherever possible, we redeploy our talent within the company and minimise the impact to our global workforce while enhancing our ability to support and serve our global customer base.”