SES delivered a solid performance in quarterly and year-to-date earnings, despite the ongoing impact of the COVID-19 crisis.
The satellite operator generated underlying revenues of EUR 462 million for the three months to September, down 2.1 percent year-on-year at constant currency.
As in previous quarters, the negative revenue reflects the contraction reported by the video distribution and video services divisions (-7.1% and -11.7% respectively), with underlying revenues dropping to EUR 273 million across the two.
However, this was offset by ongoing growth at the networks business line (+8.4% from +6.5% in Q2), where all three revenue segments (government, fixed data, and mobility) posted a positive performance.
Adjusted EBITDA decreased to EUR 301 million in the third quarter, from EUR 308 million in the year-earlier period, while the adjusted EBITDA margin improved by two percentage points to 65.1 percent. Net profit amounted to EUR 67 million, down from EUR 81 million in Q3 2019.
The operator confirmed the revised full-year targets for revenue and Adjusted EBITDA presented with the H1 2020 results are all on track, with over 97% of group revenue already contracted.
The operator also said it is on track to clear US C-band by the stated deadlines and realize the full $4bn of accelerated relocation payments. Further, SES is building the multi-orbit ‘Network of the Future’ through launch and interoperability of SES-17 and O3b mPower.
Commenting on the financial results, Steve Collar, CEO of SES, said: Our solid performance continued into the third quarter, despite ongoing COVID-19 headwinds, with sustained growth across networks and stable revenue quarter-on-quarter in our video business.”
“We were delighted to announce a substantial extension of our relationship with Canal+ across three orbital locations and valued at over $270mn, as well as a meaningful extension of our strategic partnership with Microsoft as an Azure Orbital connectivity partner and satellite partner for Azure Modular Data Centres.”
“We took measures early in the development of the COVID-19 pandemic to protect the bottom line and the benefits of these cost-saving measures are reflected in our resilient Adjusted EBITDA performance. Execution remains the priority with the business well placed to deliver on our full-year outlook.”