Video business on higher trajectory in SES first half | Major Businesses | Business | News | Rapid TV News
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The leading satellite operators have for the last few years all seen what points to continued secular declines in their broadcast and video divisions but over the course of the first half of 2021, SES has arrested what has been a steep fall in orbit for the business lines.
SES H1 2021 2AUg2021
Overall for the half year ended 30 June 2020, SES reported revenues of €875 million, down 7.7% on a reported basis but falling 3.3% at a constant exchange rate. Adjusted EBITDA was €544 million, an annual fall of 6.5% on a reported basis and 2.5% at constant FX. However, adjust net profits rose by 34.5% compared with the end of the first half of 2020 to total €152 million. Underlying revenue, excluding periodic and other sources, was lower by 2.5% year-on-year at constant FX at €875 million. There was no periodic revenue in the first half of 2021, while a year ago there was €8 million from the company’s networks division.

Yet perhaps most encouragingly was the company stopping the haemorrhaging of losses in video. The line delivered underlying revenue of €526 million, which while representing a reduction of 3.9% year-on-year at constant FX, compared with an 8.0% year-on-year fall in the 2020 financial year. In this, lower revenue from mature markets was partially offset by higher revenues generated across international markets, growth in the number of paying consumers subscribing to HD+ in Germany, and a recovery in the sports and events business. Q2 2021 underlying revenue of €263 million was 3.2% lower year-on-year at constant FX and flat compared with Q1 2021.

“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,” said SES CEO Steve Collar commenting on the first half year results.

“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.”