Full Year and Fourth Quarter 2017 Results
23/02/2018
LUXEMBOURG, 23 February 2018 -- SES S.A. announced financial results for the year and three months ended 31 December 2017.
Key financial highlights
Reported revenue EUR 2,035.0 million, down 1.6% (-5.2% like-for-like(1)); SES Video -3.6%(1) and SES Networks -1.9%(1)
EBITDA margin 65.1% (2016: 70.2% as reported and 66.7% like-for-like(1))
Net profit of EUR 596.1 million (2016: EUR 962.7 million including EUR 495.2 million gain related to O3b consolidation)
Board is proposing 2017 dividend per A share of EUR 0.80 (2016: EUR 1.34)
Financial Outlook
Karim Michel Sabbagh, President and CEO, commented: 2017 has been an important year of transformation for SES. We have established two market-focused business units, SES Video and SES Networks, and are now well positioned to deliver growth in the future. Business performance was below our expectations as the market remained challenging throughout 2017, compounded by some fleet health issues.
We are starting to see the benefits of our investment programme with three new satellites successfully launched in 2017 and another two already launched in 2018. These, along with other planned launches for 2018 and 2019, will bring much needed capacity and customer-specific capabilities to our fleet, particularly in the rapidly growing aeronautical market, that will underpin our future growth. As part of our strategic transformation, we have launched our Fit-for-Growth' programme that will optimise and focus the allocation of our world-class resources and increase internal efficiencies. As we continue to adapt to the new operating and financial model, and invest in our future growth, we have decided to rebase our dividend, allowing for growth in future years as our business develops.
SES Video delivers more channels to more viewers from more premium neighbourhoods than any other operator and, with a backlog of EUR 5.3 billion, our video business is large, profitable and resilient. SES Networks is the only business capable of combining Geostationary, Medium Earth Orbit and innovative ground solutions into compelling solutions for our data-centric customers. We are committed to reinvesting cash generated by our businesses to generate long-term growth, principally focused on SES Networks. Whilst 2018 will still be a year of completing our business transformation, SES expects to deliver growth at attractive margins, as evidenced by the 2020 guidance given today.
As it has already been announced, Padraig McCarthy and I will be stepping down as CFO and CEO of SES on 5 April 2018. Steve Collar and Andrew Browne (as President & CEO and CFO respectively) have been appointed as our successors and we wish them every success in taking SES forward.
Key business highlights
SES Video revenue of EUR 1,383.0 million in FY 2017 was down 3.6% (like-for-like), including Q4 2017 revenue of EUR 351.5 million (-3.0% like-for-like). While Video remains a competitive market environment, the business also had an unusually high impact from satellite health and launch delays, as well as some specific short-term factors at MX1 relating to the non-renewal of certain legacy contracts. In 2018, the implementation of IFRS 15 is expected to lead to a revenue reduction of around EUR 15-20 million related to HD+, with no cash impact.
SES Networks revenue was down 1.9% (like-for-like) at EUR 646.1 million, including EUR 156.1 million of revenue in Q4 2017 (-12.9% like-for-like). The Q4 2017 year-on-year (YOY) decline was primarily related to a significant transponder sale in Mobility in Q4 2016. Mobility was flat year-on-year excluding this transponder sale, with Fixed Data showing a decline of 8.4% and Government up 5.5%. SES Networks grew by 7.4% from Q3 2017 to Q4 2017 at constant FX.
SES Networks is building, resourcing and implementing unique and differentiated data solutions services which are gaining traction with customers around the world. In Q4 2017, SES Networks experienced its strongest quarter of sales, more than doubling its annualised sales volume from Q2 2017. A number of important customer services were also commissioned during Q4, generating new revenue early in 2018.
Overall, SES's backlog of committed contracts stands at EUR 7.5 billion (2016: EUR 8.1 billion as reported and EUR 7.6 billion at constant FX), flat year-on-year demonstrating that the business is successfully replacing revenue that was delivered over the course of the year. More than 80% of expected 2018 revenue is already committed.
SES's future growth is enabled by the successful launches of SES-10, SES-11 and SES-15 in 2017, and now SES-14 and SES-16 already in 2018. In the remainder of this year, SES expects to launch SES-12 and an additional four satellites for the O3b constellation which are specifically designed to maximise the MEO advantages for the target customers.
As part of its business transformation, SES is increasingly focused on managing costs to optimise efficiency and growth. In 2017, SES reduced operating expenses by EUR 4.0 million to EUR 710.8 million on a like-for-like basis. This helped support the EBITDA margin, which was 64.9% in Q4 2017 and 65.1% in full year 2017. SES is intensifying its focus on operational efficiency with the roll-out of a company-wide Fit-for-Growth' programme and anticipates taking a EUR 10-12 million restructuring provision in Q1 2018 to fund planned measures.
In Q4 2017, the tax line included the recognition of several non-recurring gains, the main one being the positive impact of changes in U.S. tax legislation which led to the recognition of a one-off accounting gain of EUR 94 million. Excluding this item and other one-off elements during 2017, the group's effective tax rate was 20.4% for FY 2017 (2016: 17.7% excluding the gain on deemed disposal of equity interest).
A higher cash
LINK: | https://www.ses.com/press-release/full-year-and-fourth-quarter-2017-re... |
See more stories from ses |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
29/05/2024
SWR moves to software playout with integrated Pixel Power solution from Rohde & Schwarz
SWR moves to software playout with integrated Pixel Power solution from Rohde & ...
28/05/2024
AI and Disinformation in Taiwan's 2024 Election
This is a summary of the report commissioned by Thomson on AI Disinformation Attacks during Taiwans 2024 Presidential Elections, written by Professor Chen-ling ...
28/05/2024
In A Violent Nature: Festivalgoers Look Through the Eyes of a Murderer
PARK CITY, UTAH - JANUARY 22: Chris Nash attends the 2024 Sundance Film Festival In A Violent Nature premiere at the Library Center Theatre on January 22, 202...
28/05/2024
Aerojet Rocketdyne Expanding Huntsville Operations to Increase Solid Rocket Motor Deliveries
Aerojet Rocketdyne's Advanced Manufacturing Facility opened in 2019. The com...
28/05/2024
France Tlvisions Upgrades to Grass Valley Kaleido-IP Video Multiviewer to Support its Upcoming SMPTE-2110 Live UHD/3G Broadcast Transition
MONTREAL, CANADA -May 28, 2024 - Grass Valley , the leading innovator for live p...
28/05/2024
How Will Venu Sports Impact Pay-TV Subscriptions?
NEW ROCHELLE, NY Venu Sports, the new sports streaming bundle from Disney, Fox and WBD expected to launch later this year, could attract more than 4 in 10 sport...
28/05/2024
Tucson TV Stations Launch NextGen TV Service
TUSCON Six stations have launched NextGen TV, aka ATSC 3.0 broadcasts in the Tucson, Ariz., area....
28/05/2024
WSC Sports Unveils Trio Of AI-Driven Content Solutions
TEL AVIV, Israel WSC Sports has introduced three additions to its product portfolio for sports ecosystem companies that address content management, creation and...
28/05/2024
Pixotope Enables Remote Intercontinental Camera Tracking for NEP the Netherlands
Pixotope Enables Remote Intercontinental Camera Tracking for NEP the Netherlands Brie Clayton May 28, 2024 0 Comments Remote markerless through-the-le...
28/05/2024
Picture Shop's Mark Kueper Grades Billy the Kid With DaVinci Resolve Studio
Picture Shop's Mark Kueper Grades Billy the Kid With DaVinci Resolve Studio Brie Clayton May 28, 2024 0 Comments Blackmagic Design today announced...
28/05/2024
Profoto enters the cinema market with L1600D
Profoto enters the cinema market with L1600D Brie Clayton May 28, 2024 0 Comments Profoto enters the cinema market with uncompromising speed of use an...
28/05/2024
After Effects cameras and Unreal Engine
After Effects cameras and Unreal Engine Graham Quince May 28, 2024 0 Comments Welcome to my series on learning Unreal Engine for video production, esp...
28/05/2024
Apple Motion: Understanding Fixed Resolution
Apple Motion: Understanding Fixed Resolution Simon Ubsdell May 28, 2024 0 Comments An overview of this tricky but important topic which can hit you wi...
28/05/2024
OBS Taps Alibaba Cloud for AI-Enhanced MultiCamera Replays at Paris 2024
LONDON Olympic Broadcasting Services recently tested AI-enhanced multcamera replay tech from Alibaba Cloud at the Olympic Qualifier Series in Shanghai in prepar...
28/05/2024
Dune Part 2 and Avatar colourists to take part in DaVinci Resolve Live Tour
The events are for filmmakers, editors, colourists, and visual effects artists, whether theyre beginners and experienced users By Jenny Priestley Published: ...
28/05/2024
Meet the head of sound
1185 Films Mark Hodgkin explains his journey from studying classic guitar and piano to working on the sound of TV adverts, films and documentaries By TVBEurope...
28/05/2024
Alfalite presents its LED displays at InfoComm 2024
Alfalite, the European LED display manufacturer, returns for the second consecutive year to InfoComm with its LED displays for the rental, fixed installation an...
28/05/2024
Leader Electronics Corporation Appoints AV Group Technolo...
Leader Electronics Corporation, globally active innovator of broadcast-quality test and measurement instrumentation, announces the appointment of Sydney-based A...
28/05/2024
Advanced 3D qualifier in DaVinci Resolve
Advanced 3D qualifier in DaVinci Resolve Kasia Jarco May 27, 2024 0 Comments In today's advanced tutorial, I want to show you how and why to use 3...
28/05/2024
Deadline Approaching for 2024 Emerging Leaders Intern Program
Applications for CBC & Leadership Triangle Due May 31 Only a few days remain for HBCU students in the Triangle to apply for the 2024 Emerging Leadership Intern...
28/05/2024
VEON Progresses with Asset-Light Strategy, Reaches Agreement to Sell Stake in TNS+ in Kazakhstan
28 May 2024 VEON Progresses with Asset-Light Strategy, Reaches Agreement to Sel...
28/05/2024
Analytics and Powering Next-Generation Consumption Experiences: A Conversation With ESPN's Allison Loucks
Analytics and Powering Next-Generation Consumption Experiences: A Conversation W...
28/05/2024
Live From London: Buzz 16 Tackles Production Duties for TNT Sports' EPCR Finals Host Coverage
Live from London: Buzz 16 tackles production duties for TNT Sports' EPCR fin...
28/05/2024
Live From London: EPCR Takes Over Tottenham Hotspur Stadium for European Rugby Finals Weekend
Live from London: EPCR takes over Tottenham Hotspur Stadium for European rugby f...
28/05/2024
Advance Step: Gen AI, Data and Coud on the Radar for British Basketball League as Production Transformation Continues
Advance step: Gen AI, data and cloud on the radar for British Basketball League ...
28/05/2024
AWS's Andrew Reich on Recent Developments in the Cloud, Helping Sports Clients Adjust to Industry-Wide Changes
AWS's Andrew Reich on Recent Developments in the Cloud, Helping Sports Clien...
28/05/2024
Riedel Bolero Empowers Student Production Excellence at Orange County School of the Arts
Wuppertal May 28, 2024 Riedel Bolero Empowers Student Production Excellence at...
28/05/2024
Bridgerton' Continues Its Reign; Atlas' Debuts at #1
Back to All News Bridgerton' Continues Its Reign; Atlas' Debuts at #1 Entertainment 28 May 2024 Global Link copied to clipboard Dearest Gentle R...
28/05/2024
Micro LED Panels and AlfaArt Combine the Best Digital Art with the Latest LED Display Technology in Easy-to-Use Solution
FOR-A Highlights Turnkey LED Video Wall System from Strategic Partner Alfalite a...
28/05/2024
2024-05-28
The Apple Hearing Study is sharing new insights on tinnitus in one of the largest surveys to date....
28/05/2024
Apantac Best of Show 2024 at NAB
Apantac Best of Show 2024 at NABApantac Best of Show 2024 at NAB Beaverton, Oregon, USA - May 22, 2024, - We are pleased to announce that our product OG-HDR-UDX...
28/05/2024
Thales' FlytEDGE digitally remasters the inflight entertainment experience
Facebook Twitter LinkedIn Live personalization for a journey filled with unique experiences Instantly stream favorites and never miss a beat, continue wa...
28/05/2024
AI-backbone for FCAS operational
AI-backbone for FCAS operational The HIS consortium and partners provide BAAINBw and industry with a cross-sectional AI development platform for FCAS (AI-back...
27/05/2024
Experience inspiration. Master challenges. With SIGRAFLEX and SIGRAFINE at ACHEMA 2024
It will soon be that time again: ACHEMA, the worlds most important trade show fo...
27/05/2024
How L3Harris Evolved into Canada's Trusted Tanker Aircraft In-Service Support Provider
L3Harris has been maintaining Canada's CC-150 Polaris fleet for over a decad...
27/05/2024
Tech Lifestyle Influencer Shelby Church Uses Blackmagic Cloud Storage with DaVinci Resolve Studio
Tech Lifestyle Influencer Shelby Church Uses Blackmagic Cloud Storage with DaVin...
27/05/2024
Bridge Technologies Introduce StreamOverview to the VB330
Bridge Technologies Introduce StreamOverview to the VB330 Brie Clayton May 27, 2024 0 Comments Single page diagnostics overview gives first-line engin...
27/05/2024
Intelligent Video Effects from Film Impact
Intelligent Video Effects from Film Impact Colin Smith May 27, 2024 0 Comments Take an incredible trip though the many unbelievable transitions from F...
27/05/2024
Midwest Regional Broadcasters Clinic Announces Agenda
The Midwest Regional Broadcasters Clinic (MRBC) announced its agenda for the clinic being held Tuesday, Sept. 10, and Wednesday, Sept. 11, in Middleton, Wis....
27/05/2024
NVIDIA Scoops Up Wins at COMPUTEX Best Choice Awards
Building on more than a dozen years of stacking wins at the COMPUTEX trade show's annual Best Choice Awards, NVIDIA was today honored with BCAs for its late...
27/05/2024
Live From NCAA Men's Lacrosse National Championship: ESPN Travels Down I-95 to Familiar Lincoln Financial Field
Live From NCAA Men's Lacrosse National Championship: ESPN Travels Down I-95 ...
27/05/2024
Rohde & Schwarz presents its solutions for next generation wide bandgap device test and debug at PCIM Europe
Rohde & Schwarz presents its solutions for next generation wide bandgap device t...
27/05/2024
Hierarchy' Trailer Teases a Dark Scandal and Social Upheaval at Jooshin High School
Back to All News Hierarchy' Trailer Teases a Dark Scandal and Social Uphea...
27/05/2024
SKY Perfect JSAT selects Thales Alenia Space to build a new cutting-edge software-defined satellite JSAT-31
Facebook Twitter LinkedIn Tokyo / Cannes, May 27th 2024 - Asia's large...
26/05/2024
Vizrt to showcase state-of-the-art proAV solutions at Inf...
Vizrt, the leader in real-time graphics and live production solutions for content creators, will be present at InfoComm for the first time since unifying with N...
26/05/2024
Alfredo Valdes Named Noticiero Telemundo Arizona' Meteorologist
Alfredo Valdes has been named meteorologist for Noticiero Telemundo Arizona weekday morning newscasts, which run on KTAZ Phoenix and KHRR Tucson. Both stations ...
26/05/2024
Paramount, Charter Reach Carriage Deal That Includes Linear Networks, TV Stations and Streaming Services
Paramount Global and Charter Communications said they reached a new carriage agr...
26/05/2024
Daytime Emmys To Again Be Hosted by ET's Kevin Frazier, Nischelle Turner
Entertainment Tonight's Kevin Frazier and Nischelle Turner are returning to host the 51st annual Daytime Emmys, CBS and the National Academy of Television A...