SES announces its half-year financial results that reveal solid H1 2021 performance upon delivering revenue of €875 million and adjusted EBITDA of €544 million. In line with this, the company’s 2021 revenue and improved EBITDA outlook are on track.
Commenting on the results, Steve Collar, CEO of SES, said, “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.”
Over 90% of 2021 revenue outlook of €1,760-1,820 million is already under contract and the adjusted EBITDA outlook for FY 2021 improved to €1,080-1,100 million. Moreover, the adjusted net profit improved by 34.5% year-on-year to €152 million including the positive combination of the lower recurring operating expenses, lower depreciation and amortization expenses, and an 18.5% reduction in net interest expense.
“The lasting value of our Video business is reflected in the improved trajectory, the important long-term renewals at our core neighborhoods, 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,” added Steve.
Networks also continue to perform well despite the COVID-impacted environment, notably in the government sector which reflects the strong demand for unique multi-orbit resilient solutions. “With O3b mPOWER still over a year away from commercial launch, we have secured over $300 million in backlog from major cruise brands which underscores the compelling combination of high throughput and high flexibility of the constellation.”
US C-band clearing is also on track to meet end-2021 and end-2023 milestones. This can result in $1 billion and $3 billion payments respectively. “The recent issuing of C-band licenses by the FCC is a notable milestone towards initiation of the reimbursement process. Meanwhile, we have returned €275 million of cash to shareholders this year underscoring our commitment to delivering sustained and attractive returns for our shareholders,” concluded Steve.