In the face of a number of headwinds, not least the continued decline in the core video business as like other operators in its industry, satellite operator SES believes that in the first half of 2022 it has had solid execution against full year targets and strategic value creation initiatives.
For the six months ended 30 June 2022, SES reported revenue of €899 million, up 2.8% year-on-year on an as reported basis, and adjusted EBITDA of €545 million flat YOY. Revenue expansion in Q2 2022 was driving Networks business growth, increasing 2.1% compared with the same period a year earlier and supporting Full Year growth expectation. Adjusted net profit increased by 11% versus the end of the first half of 2021 to €168 million, while leverage reduced to 3.0 times.
A highlight for the six months was SES’s Networks business which delivered annual growth of 2% and the sees this upward trajectory further strengthened by important wins with ARSAT and AXESS Networks, agreements signed with Explora Journeys and another leading cruise provider, and the entry into service of SES-17 which is now operational and delivering commercial services to customers.
By contrast, and despite what were seen as important renewals at core video neighbourhoods and performance complemented by growth in the HD+ and Sports & Events businesses, Video business dropped 5.1% YOY including periodic revenues. Video underlying revenue of €501 million represented a reduction of 7.0% year-on-year including the planned impact of lower US wholesale revenue. Excluding US wholesale, Video was 4.8% lower than H1 2021 as lower volumes in mature markets were partially offset by the growth in HD+ and Sports & Events. Figures include periodic revenue of €10 million in Q1 2022.
By 30 June 2022, SES was delivering 8,028 total TV channels to 366 million TV homes around the world, including 3,092 high definition TV channels. 72% of total TV channels were broadcast in MPEG-4 with an additional 6% broadcast in HEVC. This was a fall since the end of 2021 in terms of channels but an increase of TV homes.
Commenting on the half year results, SES CEO Steve Collar said: “I am pleased with our H1 2022 results reflecting solid execution across the business and affirming that we are fully on track to deliver on our full year revenue and EBITDA outlook. … We secured several important renewals at our core video neighbourhoods in the first half and, with limited contract maturities in the second half, have clear line of sight to our full year revenue outlook, with first half performance complemented by growth in our HD+ and Sports & Events businesses.”
A highlight for the six months was SES’s Networks business which delivered annual growth of 2% and the sees this upward trajectory further strengthened by important wins with ARSAT and AXESS Networks, agreements signed with Explora Journeys and another leading cruise provider, and the entry into service of SES-17 which is now operational and delivering commercial services to customers.
By contrast, and despite what were seen as important renewals at core video neighbourhoods and performance complemented by growth in the HD+ and Sports & Events businesses, Video business dropped 5.1% YOY including periodic revenues. Video underlying revenue of €501 million represented a reduction of 7.0% year-on-year including the planned impact of lower US wholesale revenue. Excluding US wholesale, Video was 4.8% lower than H1 2021 as lower volumes in mature markets were partially offset by the growth in HD+ and Sports & Events. Figures include periodic revenue of €10 million in Q1 2022.
By 30 June 2022, SES was delivering 8,028 total TV channels to 366 million TV homes around the world, including 3,092 high definition TV channels. 72% of total TV channels were broadcast in MPEG-4 with an additional 6% broadcast in HEVC. This was a fall since the end of 2021 in terms of channels but an increase of TV homes.
Commenting on the half year results, SES CEO Steve Collar said: “I am pleased with our H1 2022 results reflecting solid execution across the business and affirming that we are fully on track to deliver on our full year revenue and EBITDA outlook. … We secured several important renewals at our core video neighbourhoods in the first half and, with limited contract maturities in the second half, have clear line of sight to our full year revenue outlook, with first half performance complemented by growth in our HD+ and Sports & Events businesses.”
