[July 28, 2017] |
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Half Year 2017 Results: Solid Performance on Execution of SES's Differentiated Strategy
SES S.A. (Euronext Paris:SESG) (LuxX:SESG) announced financial results
for the six months ended 30 June 2017.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20170727006621/en/
Half Year 2017 Results: Solid Performance on Execution of SES's Differentiated Strategy (Photo: Business Wire)
Delivering return to growth in revenue and profitability
-
Revenue EUR 1,048.7 million, up 9.6% over prior period (down 1.5%
like-for-like1)
-
EBITDA margin 65.5% and operating profit margin 29.2%2 (H1
20161: 66.4% and 31.3% respectively)
-
Net profit attributable to SES shareholders of EUR 275.5 million, up
21.2% over prior period
-
Net debt to EBITDA ratio3 3.24 times (H1 2016: 2.03 times),
in line with SES's financial framework
-
Substantial contract backlog of EUR 7.5 billion (H1 2016: EUR 7.3
billion)
Improving trend in SES Video and strong growth in SES Networks
delivers stable verticals development
-
Improving trend in SES Video with Q2 2017 at -1.9% (YOY), compared
with Q1 2017 at -4.2% (YOY)
-
Stable outlook for SES Video, excluding short-term impact of launch
schedule and satellite health changes
-
Improved business mix and differentiated solutions driving 7.5% (YOY)
growth in SES Networks
-
Development agreement signed with Boeing to deliver next generation
technology innovation
Karim Michel Sabbagh, President and CEO, commented: "SES
continues to make a positive start to 2017 and is well positioned to
generate sustained growth and improving returns.
SES Video continues to deliver differentiated services and enhance the
viewing experience, with the proportion of integrated solutions nearly
doubling versus last year. The improving trend in Q2 2017 underpins our
stable outlook for 2017 before the temporary impact of changes due to
launch schedule and satellite health, which are expected to result in a
slight decline.
SES Networks' distributed network capabilities are driving strong growth
across our data-centric verticals, expanding with global fixed data,
aeronautical, maritime and government clients. The development
agreement, signed today, with Boeing is the latest milestone in
delivering next generation technology that will form the basis for SES's
future network and will expand the future addressable market."
_________________________
1 Comparative figures are restated at constant FX to
neutralise currency variations and assuming (on a pro forma basis) that
RR Media and O3b had been consolidated from 1 January 2016 2
Includes one-off impairment charge against AMC-9 of EUR 38.4 million.
Excluding this item, H1 2017 operating profit margin was 32.8% 3
Based on rating agency methodology (treats hybrid bonds as 50% debt
and 50% equity). Under IFRS (treats hybrid bonds as 100% equity), net
debt to EBITDA ratio was 2.79 times at 30 June 2017 (30 June 2016: 1.77
times)
OPERATIONAL REVIEWS
At 30 June 2017, SES's fully protected contract backlog was EUR 7.5
billion (30 June 2016: EUR 7.3 billion). The substantial backlog is the
result of the successful commercial activity across SES's two natural
business units - SES Video and SES Networks.
SES Video: 67% of group revenue (H1 2016: 70%)
-
Reported revenue up 5.4% to EUR 699.7 million (-3.1% like-for-like)
-
Improving trend with Q2 2017 at -1.9% (YOY) versus -4.2% (YOY) for Q1
2017
-
Nearly doubling reported revenue from integrated media solutions
As expected, a significant improvement in the year-on-year
(like-for-like) development between Q1 2017 (-4.2%) and Q2 2017 (-1.9%)
led to an overall reduction of 3.1% for H1 2017, compared with the prior
period. This resulted from the impact of higher periodic revenue,
predominantly in Q1 2016, beginning to progressively normalise over the
course of 2017. Q2 2017 benefited from the signing of new agreements
covering the existing fleet and recently launched capacity.
At 30 June 2017, SES's global fleet carried a total of 7,741 TV
channels, representing a year-on-year increase of 4%. SES's HDTV channel
count grew by 6%, year-on-year, to 2,587 channels, while the SES
satellite network now also carries 20 commercial UHD channels (30 June
2016: 16), including regional variations.
Consequently, HD penetration increased from 32.7% to 33.4% in the last
12 months. Over the same period, the proportion of total channels
broadcast in MPEG-4 increased from 58.9% to 63.5% of SES's total TV
channels.
The main highlights in Video included:
-
Media Broadcast Satellite and SES agreed a multi-year capacity
extension contract for use of a full transponder at 19.2 degrees East
to continue to serve customers in Germany, Austria and Switzerland;
-
Two multichannel video programming distributors (MVPDs) in the U.S.
launched the first linear UHD services for cable and internet protocol
(IP) TV subscriber homes using SES's end-to-end UHD solution;
-
More than 25 MVPDs are now testing SES's UHD all-in-one in North
America. This includes Verizon, which is using the platform to drive
the overall development of UHD delivery solutions for Verizon Fios;
-
Multi-year capacity agreement with MultTV to deliver approximately 60
(SD and HD) channels to smaller regional Internet Service Providers
(ISP) across Brazil; and
-
Successful launch of SES-10, which will serve the Andean Community
(Bolivia, Columbia, Ecuador and Peru) for direct-to-home broadcasting
as well as fixed data and mobility services.
MX1 has continued to build market traction, offering a differentiated
combination of end-to-end, linear and non-linear, media solutions.
Compared with H1 2016, the proportion of reported revenue from
integrated media solutions (combining capacity and value-added services)
has nearly doubled, supported by the acquisition of RR Media and the
creation of MX1. The commercial highlights for MX1 included:
-
Securing a long-term contract and expanded service agreement with Beta
Film Ltd. for a range of media services, including content management,
using the new and innovative MX1 360 platform;
-
Contract with the Israel Premier Football League to provide end-to-end
services for live content editing;
-
MX1 and Sky Deutschland agreed a multi-year contract extension for the
provision of back-up services to enable business continuity. The
agreement includes playout and turnaround services, such as encoding,
multiplexing and encryption, and uplink services;
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Multi-year distribution agreement with VUBIQUITY for a new service
offering broadcasters, TV channels and rights holders the ability to
aggregate content and reach millions of viewers quickly and simply; and
-
Agreement to support the linear broadcasting requirements of a major
global video on demand platform.
SES Networks: 33% of group revenue (H1 2016: 29%)
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Reported revenue up 24.9% to EUR 343.4 million (+7.5% like-for-like)
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Growth in Mobility and Government, complemented by broadly stable
development in Fixed Data
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Development agreement with Boeing to deliver next generation
technology innovation
SES Networks comprises the Fixed Data, Mobility and Government verticals
and integrates O3b's unique high throughput, low latency Medium Earth
Orbit (MEO) constellation and distributed network capabilities. The
progress in each of these data-centric verticals is discussed separately
below.
SES and Boeing have, today, signed a new agreement to develop innovative
technology improvements aimed at delivering next generation technology
that will form the basis for SES's future satellite fleet.
Fixed Data: 13% of group revenue (H1 2016: 12%)
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Reported revenue up 18.9% to EUR 139.6 million (-0.4% like-for-like)
-
Further expansion and service upgrades by major global GEO and MEO
clients offsetting lower point-to-point wholesale capacity revenue
(now representing around 1.5% of group revenue)
As the only multi-orbit and multi-frequency distributed network
solutions provider, SES Networks has continued to secure new business
opportunities, as well as scaling up services with existing, long-term
tier one clients. H1 2017 revenue also benefited from periodic revenue
of around EUR 9 million.
SES Networks is focused on supporting the applications and networks of
the future for a range of telecoms companies, mobile network operators,
cloud-based services and corporate enterprises, where it can benefit
from important elasticity of demand and significant growth
opportunities. The main highlights in Fixed Data included:
-
SES Networks will provide a full end-to-end solution, including
wireless terrestrial communication, to connect nearly 900 sites
throughout Burkina Faso using its high throughput, low latency MEO
fleet;
-
Orange Central African Republic contracted SES Networks to deliver
faster 3G services and improved internet connections for enterprise
clients and hundreds of thousands of people in the region;
-
Intersat signed a multi-year, multi-frequency capacity agreement for
the delivery of internet solutions across Africa, using the SES
network and supporting teleport services;
-
Palau Telecoms increased contracted network capacity for the fifth
time in under two years, nearly doubling its capacity requirement
since going live on the MEO network;
-
Timor Telecom extended their contract for MEO services, which now
delivers more than one gigabit per second of low latency connectivity
delivered to two sites operated by Timor Telecom; and
-
Presta Bist Telecoms increased by 66% its contracted MEO capacity in
response to rising demand for reliable, high-speed broadband in the
Republic of Chad.
Mobility: 8% of group revenue (H1 2016: 5%)
-
Reported revenue up 88.1% to EUR 83.8 million (+37.1% like-for-like)
-
H1 2017 included upfront revenue contribution from Global Eagle
Entertainment (GEE) in Q1 2017
-
Double-digit growth in both aeronautical and maritime underpinning
strong growth outlook
In the first half of 2017, SES has continued to expand its global
aeronautical mobility business with the leading providers of inflight
connectivity and entertainment. This included:
-
GEE announced the acquisition of a Ku-band payload on SES's AMC-3
satellite to boost capacity for its customers in North America, the
Gulf of Mexico and the Caribbean;
-
Gogo signed a new contract to use capacity on 12 Ku-band transponders,
and supporting ground infrastructure, to expand high-speed inflight
connectivity services over the U.S. and Canada; and
-
Gogo subsequently leased all available capacity on AMC-4 to serve
flights across Alaska, Hawaii, the west coast of the U.S., as well as
over the Pacific Ocean.
The agreements with GEE and Gogo reflect SES's unique approach of
leveraging its global fleet, including non-station-kept satellites, to
support growth opportunities across the Mobility sector.
SES Networks continued to gain market traction and benefit from
differentiated capabilities to deliver flexible and scalable
connectivity network solutions in maritime, including:
-
Multi-year contract with Primacom, which will use SES's fully-managed
Maritime+ service to deliver reliable and high-speed connectivity to
vessels operating in the Asia-Pacific region;
-
Multi-year agreement with Telenor Maritime to provide a fully-managed
solution delivering a high-quality end-user experience for passengers
on eight of Silversea Cruise Ships' ultra-luxury vessels;
-
SES and GT Maritime announced a partnership to provide a new
volume-based solutions package, using SES Networks' Maritime+ service,
for a range of vessels across Europe and the Middle East;
-
Patrakom signed a multi-year agreement to use capacity across SES-9's
powerful mobility beam to provide connectivity for over 80 passenger
vessels and oil barges traversing Indonesian waters; and
-
Satcom Global contracted capacity on both SES's existing fleet and
upcoming next generation hybrid satellites to deliver seamless,
high-speed connectivity solutions for its customers.
Government: 12% of group revenue (H1 2016: 12%)
-
Reported revenue up 6.3% to EUR 120.0 million (+1.6% like-for-like)
-
Growing in global government, including important new business for
LuxGovSat and O3b
-
SES GS benefiting from differentiated solutions and increasing
stabilisation of U.S. Government demand
The main highlights in Government included:
-
SES GS contracted, on a multi-year basis, additional MEO services with
a U.S. Government customer;
-
SES and the Luxembourg Ministry of Foreign Affairs extended a contract
to maintain and support SATMED, a satellite-enabled e-health platform,
until 2020; and
-
SES launched the Rapid Response Vehicle (RRV), a new Government+
solution, capable of delivering multi-orbit (GEO-MEO) and
multi-frequency connectivity for a broad range of government missions.
Future satellite capacity and fleet update
COMMITTED LAUNCH SCHEDULE
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Satellite
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Region
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Application
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Launch Date
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SES-10
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Latin America
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Video, Fixed Data
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Launched (March 2017)
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SES-11
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North America
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Video, Fixed Data
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Q4 2017 (from Q2 2017)
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SES-12(1)
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Asia-Pacific
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Video, Fixed Data, Mobility
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Q1 2018 (from Q4 2017)
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SES-14(1)
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Latin America
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Video, Fixed Data, Mobility
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Q1 2018 (from Q4 2017)
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SES-15(1)
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North America
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Fixed Data, Mobility, Government
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Launched (May 2017)
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SES-16/GovSat-1(2)
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Europe/MENA
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Government
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Q4 2017
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O3b (satellites 13-16)
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Global
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Fixed Data, Mobility, Government
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Q1 2018
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O3b (satellites 17-20)
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Global
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Fixed Data, Mobility, Government
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H1 2019
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SES-17
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Americas
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Fixed Data, Mobility, Government
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H1 2021
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1) To be positioned using electric orbit raising (entry into service
typically around six months after launch) 2) Procured by
LuxGovSat
On 30 March 2017, SES-10 was successfully launched on board a SpaceX
Falcon 9 rocket, becoming the first GEO satellite to launch on a
flight-proven first-stage rocket booster, and entered into service in
May 2017.
On 18 May 2017, SES-15 was launched on a Soyuz rocket, and is expected
to enter into service at the end of 2017. This spacecraft is SES's first
hybrid with wide beam and high throughput capacity serving inflight
connectivity and entertainment over North America. SES-15 also carries a
Wide Area Augmentation System (WAAS) hosted payload for the U.S.
Government.
In June 2017, AMC-9 (48 total transponders) was affected by a
significant anomaly, which resulted in an impairment charge of EUR 38.4
million against the spacecraft in the H1 2017 financial statements. SES
was able to draw on its global fleet to rapidly restore customers'
capacity. The impact on FY 2017 group revenue is expected to be between
EUR 15 million and EUR 18 million, reflecting the reduction in the total
number of available fleet transponders for future commercialisation.
In July 2017, SES determined that, due to a recent anomaly, the
available capacity on NSS-806 is reduced by 12 transponders. The impact
on FY 2017 revenue is expected to be between EUR 7 million and EUR 9
million, reflecting the reduction in total available fleet transponders
for future commercialisation.
The impact of these anomalies is expected to be temporary as SES's fleet
planning and new capacity from satellites expected to be launched within
the next nine months will mitigate the short-term reduction in
marketable capacity.
The revenue impact from the combination of changes in satellite health
status, as well as the updated launch schedule, will be mainly in the
second half of 2017. This will predominantly be in Video and is expected
to have a lower impact on FY 2018 revenue development.
FINANCIAL REVIEW
REVENUE BY MARKET VERTICAL
EUR million
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H1 2017
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H1 2016
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Change (reported)
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Change (like-for-like)(1)
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SES Video
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699.7
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663.7
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+5.4%
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-3.1%
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SES Networks
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343.4
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274.9
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+24.9%
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+7.5%
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- Fixed Data
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139.6
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117.4
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+18.9%
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-0.4%
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- Mobility
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83.8
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44.6
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+88.1%
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+37.1%
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- Government
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120.0
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112.9
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+6.3%
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+1.6%
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Sub-total
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1,043.1
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938.6
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+11.1%
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+0.2%
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Other(2)
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5.6
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18.2
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n/m
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n/m
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Group Total
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1,048.7
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956.8
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+9.6%
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-1.5%
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1) At constant FX and assuming RR Media and O3b had been consolidated
from 1 January 2016 2) Other includes revenue not directly
applicable to a particular vertical
Reported revenue was 9.6% higher than the prior period, including
the contribution from RR Media (acquired on 6 July 2016) and O3b
(consolidated on 1 August 2016). On a like-for-like basis (at constant
FX and assuming that RR Media and O3b had been consolidated from 1
January 2016), the combination of an improving trend in SES Video and
strong growth in SES Networks resulted in a stable development across
the four market verticals. The overall revenue reduction of 1.5%
compared with the prior year was entirely due to lower "Other" revenue.
OPERATING EXPENSES AND EBITDA
EUR million
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|
H1 2017
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H1 2016
|
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Change
|
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Change
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Operating expenses
|
|
(361.6)
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(257.0)
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(104.6)
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-40.7%
|
Operating expenses (constant FX)
|
|
(361.6)
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(260.7)
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(100.9)
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-38.7%
|
Operating expenses (like-for-like)(1)
|
|
(361.6)
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(357.3)
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(4.3)
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-1.2%
|
|
|
|
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EBITDA
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687.1
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699.8
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(12.7)
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-1.8%
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EBITDA (constant FX)
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687.1
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707.9
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(20.8)
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-2.9%
|
EBITDA (like-for-like)(1)
|
|
687.1
|
|
706.9
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(19.8)
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-2.8%
|
1) At constant FX and assuming RR Media and O3b had been consolidated
from 1 January 2016)
Operating expenses were EUR 4.3 million (or 1.2%) higher on a
like-for-like basis, mainly due to higher variable cost of sales
associated with O3b and HD+ revenue growth. The group's fixed cost base
was stable on a like-for-like basis, reflecting SES's long-term track
record of continuous fixed cost optimisation.
Reported EBITDA was 1.8% lower than the prior period (-2.8%
like-for-like). The reported EBITDA margin of 65.5% compared to
the H1 2016 margin of 73.1% as reported and 66.4% like-for-like.
DEPRECIATION, AMORTISATION AND OPERATING PROFIT
EUR million
|
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H1 2017
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H1 2016
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Change
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Change
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Depreciation and impairment expense
|
|
(342.0)
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|
(251.0)
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(91.0)
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-36.2%
|
Amortisation expense
|
|
(39.1)
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(31.2)
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(7.9)
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-25.8%
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Depreciation, impairment and amortisation
|
|
(381.1)
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(282.2)
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(98.9)
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-35.1%
|
Depreciation, impairment and amortisation (constant FX)
|
|
(381.1)
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|
(286.4)
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|
(94.7)
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-33.1%
|
Depreciation, impairment and amortisation (like-for-like)(1)
|
|
(381.1)
|
|
(374.0)
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(7.1)
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-1.9%
|
|
|
|
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|
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Operating profit
|
|
306.0
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417.6
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(111.6)
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-26.7%
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Operating profit (constant FX)
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306.0
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421.5
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(115.5)
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-27.4%
|
Operating profit (like-for-like)(1)
|
|
306.0
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332.9
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(26.9)
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-8.1%
|
1) At constant FX and assuming RR Media and O3b had been consolidated
from 1 January 2016
Depreciation, impairment and amortisation expense increased by
EUR 98.9 million mainly due to the consolidation of O3b and RR Media, as
well as an impairment charge of EUR 38.4 million against AMC-9.
Like-for-like depreciation and amortisation (excluding the impairment
charge) was 8.4% lower than the prior period reflecting lower
depreciation on the O3b fleet and a net reduction in the depreciation on
the GEO fleet, which more than offset additional depreciation from new
capacity added.
Operating profit was 26.7% lower (-8.1% like-for-like) than the
prior period, and the group's operating profit margin was 29.2%
(H1 2016: 43.7% as reported and 31.3% like-for-like). Excluding the
one-off impairment charge against AMC-9, like-for-like operating profit
was 3.5% higher and the operating profit margin was 32.8%.
PROFIT ATTRIBUTABLE TO SES SHAREHOLDERS
EUR million
|
|
H1 2017
|
|
H1 2016
|
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Change
|
|
Change
|
Net interest expense and other
|
|
(96.1)
|
|
(93.8)
|
|
(2.3)
|
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-2.5%
|
Capitalised interest
|
|
21.8
|
|
16.4
|
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+5.4
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+33.0%
|
Net foreign exchange gains
|
|
5.7
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|
1.8
|
|
+3.9
|
|
n/m
|
Net financing costs
|
|
(68.6)
|
|
(75.6)
|
|
+7.0
|
|
+9.2%
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
237.4
|
|
342.0
|
|
(104.6)
|
|
-30.6%
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
40.1
|
|
(59.6)
|
|
+99.7
|
|
n/m
|
Profit after tax
|
|
277.5
|
|
282.4
|
|
(4.9)
|
|
-1.7%
|
|
|
|
|
|
|
|
|
|
Share of associates' results (net of tax)
|
|
--
|
|
(54.1)
|
|
+54.1
|
|
n/m
|
Non-controlling interests
|
|
(2.0)
|
|
(1.0)
|
|
(1.0)
|
|
n/m
|
Profit attributable to SES shareholders
|
|
275.5
|
|
227.3
|
|
+48.2
|
|
+21.2%
|
|
|
|
|
|
|
|
|
|
Net financing costs included a net foreign exchange gain of EUR
5.7 million (H1 2016: EUR 1.8 million). Net interest expense was broadly
in line with the prior year, as additional finance costs from RR Media
and O3b were offset by lower same scope net interest and higher
capitalised interest. As presented using IFRS recognition principles,
net financing costs exclude the interest payments for the EUR 1.3
billion of hybrid (perpetual) bonds issued during 2016 at an average
coupon of 5.05%.
The positive contribution from income tax of EUR 40.1 million
resulted from the release of certain tax provisions and the recognition
of a tax asset in relation to withholding tax in Latin America.
Excluding these items, the group's effective tax rate was 13.1%
(H1 2016: 17.4%).
As a result of the consolidation of O3b on 1 August 2016, the group's share
of associates' results (net of tax) was nil (H1 2016: loss of EUR
54.1 million).
Net profit attributable to SES shareholders increased by 21.2%
compared with the prior period. Earnings per share was EUR 0.56
for the first half of the year (H1 2016: EUR 0.55), which included the
impact of the increase in the weighted average number of shares
following the group's equity raising in May 2016 and is after deducting
the net of tax coupon for the hybrid bonds.
Cash Flow and Financing
FREE CASH FLOW BEFORE FINANCING ACTIVITIES
EUR million
|
|
H1 2017
|
|
H1 2016
|
|
Change
|
|
Change
|
Net cash generated by operating activities
|
|
635.1
|
|
566.8
|
|
+68.3
|
|
+12.1%
|
Net cash absorbed by investing activities
|
|
(259.9)
|
|
(286.8)
|
|
+26.9
|
|
+9.4%
|
Free cash flow before financing activities
|
|
375.2
|
|
280.0
|
|
+95.2
|
|
+34.0%
|
|
|
|
|
|
|
|
|
|
Net cash generated by operating activities was EUR 68.3 million
(or 12.1%) higher than the prior period. When combined with lower net
cash absorbed by investing activities, free cash flow before
financing increased by EUR 95.2 million (or 34.0%) compared with H1
2016. Free cash flow as a proportion of revenue was 35.8% (H1 2016:
29.3%).
NET DEBT TO EBITDA RATIO
EUR million
|
|
30 June 2017
|
|
30 June 2016
|
|
Change
|
|
Change
|
Borrowings(1)
|
|
4,248.0
|
|
4,358.9
|
|
(110.9)
|
|
-2.5%
|
Cash and cash equivalents
|
|
(234.8)
|
|
(1,777.7)
|
|
+1,542.9
|
|
n/m
|
Net debt
|
|
4,013.2
|
|
2,581.2
|
|
+1,432.0
|
|
+55.5%
|
|
|
|
|
|
|
|
|
|
Net debt / EBITDA (IFRS)
|
|
2.79 times
|
|
1.77 times
|
|
|
|
|
Net debt / EBITDA (rating agency)(2)
|
|
3.24 times
|
|
2.03 times
|
|
|
|
|
1) As presented using IFRS recognition principles, where hybrid bonds
are treated as 100% equity 2) Rating agency methodology
treats the hybrid bonds as 50% debt and 50% equity
The group's current and non-current borrowings were EUR 110.9
million (or 2.5%) lower than the prior period. The lower cash and
equivalents mainly reflect the timing of cash outflows for the
acquisition of RR Media and the consolidation of O3b in H2 2016.
The group's net debt to EBITDA ratio was 3.24 times as at 30 June
2017 (30 June 2016: 2.03 times), based on the treatment of SES's hybrid
bonds as 50% debt and 50% equity.
Financial Outlook
The financial outlook aims to provide shareholders with an
understanding of SES's growth trajectory, drivers and strategy execution
in each of the market verticals, as well as the group's long-term value
creation potential. The financial outlook assumes a nominal launch
schedule and satellite health status.
SES Video growth for FY 20171 is expected to be stable, in
line with the previous outlook, before the combined impact of the later
launches and changes in satellite health, as outlined on pages five and
six. Including the temporary impact of these changes, SES Video is
expected to decline slightly in FY 2017, returning to growth thereafter.
The previous targets for the three SES Networks verticals are all
re-affirmed. For FY 2017, SES is targeting a return to growth in Fixed
Data, strong growth in Mobility and stable-to-slight growth in
Government.
SES's future revenue trajectory will benefit from the contribution of
recently added and forthcoming GEO-MEO investments, planned to be
launched by the end of 2019, which are expected to generate incremental
annualised revenue of up to EUR 750 million (equivalent to around 35% of
2016 group revenue) at 'steady-state'. Over 30% of this revenue is
already contracted.
SES's EBITDA margin1 is expected to be broadly stable for FY
2017 and FY 2018 and rising slightly thereafter, while operating profit
margin1 is expected to significantly improve to more than 40%
in the medium term.
SES's capital expenditure (CapEx) in FY 2017 is now expected to be
around EUR 120 million lower (from EUR 810 million to EUR 690 million),
due to changes in launch timing and lower uncommitted CapEx.
These foundations will allow SES to significantly grow Return on
Invested Capital (ROIC)2 to over 10% in the medium term.
________________________
1 On a like-for-like basis, assuming RR Media and O3b had
been consolidated on 1 January 2016. On this basis, Full Year 2016
EBITDA margin of 66.7% and Full Year 2016 Operating profit margin
(before gain on deemed disposal of equity interest) of 33.3% 2
Net Operating Profit After Tax (NOPAT) divided by average of opening
and closing shareholders' equity plus Net Debt
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE
EUR million
|
|
2017
|
|
2016
|
Average Euro/U.S. Dollar exchange rate
|
|
1.0789
|
|
1.1106
|
|
|
|
|
|
Revenue
|
|
1,048.7
|
|
956.8
|
Operating expenses
|
|
(361.6)
|
|
(257.0)
|
EBITDA(1)
|
|
687.1
|
|
699.8
|
|
|
|
|
|
Depreciation and impairment expense
|
|
(342.0)
|
|
(251.0)
|
Amortisation expense
|
|
(39.1)
|
|
(31.2)
|
Operating profit
|
|
306.0
|
|
417.6
|
|
|
|
|
|
Finance income
|
|
5.7
|
|
6.9
|
Finance costs
|
|
(74.3)
|
|
(82.5)
|
Net financing costs
|
|
(68.6)
|
|
(75.6)
|
|
|
|
|
|
Profit before tax
|
|
237.4
|
|
342.0
|
|
|
|
|
|
Income tax benefit / (expense)
|
|
40.1
|
|
(59.6)
|
Profit after tax
|
|
277.5
|
|
282.4
|
|
|
|
|
|
Share of associates' results (net of tax)
|
|
--
|
|
(54.1)
|
Profit for the period
|
|
277.5
|
|
228.3
|
|
|
|
|
|
Non-controlling interests
|
|
(2.0)
|
|
(1.0)
|
Profit attributable to owners of the parent
|
|
275.5
|
|
227.3
|
|
|
|
|
|
Earnings per share (in EUR)(2)
|
|
|
|
|
Class A shares
|
|
0.56
|
|
0.55
|
Class B shares
|
|
0.22
|
|
0.22
|
1) Earnings before interest, tax, depreciation, impairment,
amortisation and share of associates' result (net of tax) 2)
Earnings per share is calculated as profit attributable to owners of the
parent divided by the weighted average number of shares outstanding
during the year, as adjusted to reflect the economic rights of each
class of share. For the purposes of the EPS calculation only, the net
profit for the year attributable to ordinary shareholders has been
adjusted to include the coupon, net of tax, on the perpetual bonds.
Fully diluted earnings per share are not significantly different from
basic earnings per share
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million
|
|
30 June 2017
|
|
31 December 2016
|
Property, plant and equipment
|
|
4,773.7
|
|
5,156.3
|
Assets in the course of construction
|
|
1,330.1
|
|
1,389.6
|
Total property, plant and equipment
|
|
6,103.8
|
|
6,545.9
|
Intangible assets
|
|
4,863.0
|
|
5,247.7
|
Deferred tax assets
|
|
68.8
|
|
70.5
|
Financial and other non-current assets
|
|
175.3
|
|
215.6
|
Total non-current assets
|
|
11,210.9
|
|
12,079.7
|
|
|
|
|
|
Inventories
|
|
36.1
|
|
30.2
|
Trade and other receivables
|
|
721.8
|
|
870.4
|
Prepayments
|
|
49.2
|
|
49.8
|
Derivatives
|
|
3.2
|
|
--
|
Income tax receivable
|
|
63.2
|
|
28.3
|
Cash and cash equivalents
|
|
234.8
|
|
587.5
|
Total current assets
|
|
1,108.3
|
|
1,566.2
|
Total assets
|
|
12,319.2
|
|
13,645.9
|
|
|
|
|
|
Equity attributable to the owners of the parent
|
|
5,948.9
|
|
6,806.5
|
Non-controlling interests
|
|
132.3
|
|
138.6
|
Total equity
|
|
6,081.2
|
|
6,945.1
|
|
|
|
|
|
Borrowings
|
|
4,078.3
|
|
4,223.1
|
Provisions
|
|
33.3
|
|
44.7
|
Deferred income
|
|
372.3
|
|
411.8
|
Deferred tax liabilities
|
|
583.0
|
|
664.2
|
Other long-term liabilities
|
|
93.5
|
|
69.1
|
Total non-current liabilities
|
|
5,160.4
|
|
5,412.9
|
|
|
|
|
|
Borrowings
|
|
169.7
|
|
204.3
|
Provisions
|
|
48.2
|
|
86.7
|
Deferred income
|
|
412.1
|
|
510.5
|
Trade and other payables
|
|
403.0
|
|
459.1
|
Derivatives
|
|
--
|
|
1.0
|
Income tax liabilities
|
|
44.6
|
|
26.3
|
Total current liabilities
|
|
1,077.6
|
|
1,287.9
|
Total liabilities
|
|
6,238.0
|
|
6,700.8
|
|
|
|
|
|
Total equity and liabilities
|
|
12,319.2
|
|
13,645.9
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE
EUR million
|
|
2017
|
|
2016
|
Profit before tax
|
|
237.4
|
|
342.0
|
|
|
|
|
|
Taxes paid during the year
|
|
(45.9)
|
|
(52.7)
|
Adjustment for non-cash items
|
|
395.3
|
|
329.5
|
Consolidated operating profit before working capital changes
|
|
586.8
|
|
618.8
|
Changes in working capital
|
|
48.3
|
|
(52.0)
|
Net cash generated by operating activities
|
|
635.1
|
|
566.8
|
|
|
|
|
|
Payments for purchases of intangible assets
|
|
(10.9)
|
|
(12.2)
|
Payments for purchases of tangible assets
|
|
(239.7)
|
|
(252.4)
|
Other investing activities
|
|
(9.3)
|
|
(22.2)
|
Net cash absorbed by investing activities
|
|
(259.9)
|
|
(286.8)
|
Free cash flow before financing activities
|
|
375.2
|
|
280.0
|
|
|
|
|
|
Proceeds from borrowings
|
|
34.5
|
|
124.4
|
Repayment of borrowings
|
|
(68.7)
|
|
(163.8)
|
Proceeds from perpetual bond(1)
|
|
(1.8)
|
|
733.5
|
Coupon paid on perpetual bond
|
|
(24.7)
|
|
--
|
Dividends paid on ordinary shares, net of dividends received on
treasury shares
|
|
(547.3)
|
|
(527.5)
|
Dividends paid to non-controlling interests
|
|
(3.5)
|
|
(3.6)
|
Interest on borrowings
|
|
(110.1)
|
|
(108.1)
|
Proceeds from issuance of shares(1), net of the
contribution in kind
|
|
--
|
|
885.5
|
Payments for acquisition of treasury shares
|
|
(42.6)
|
|
(172.1)
|
Proceeds from treasury shares sold and exercise of stock options
|
|
40.8
|
|
63.6
|
Equity contribution by non-controlling interests
|
|
1.9
|
|
12.5
|
Net cash (absorbed) / generated by financing activities
|
|
(721.5)
|
|
844.4
|
Free cash flow after financing activities
|
|
(346.3)
|
|
1,124.4
|
|
|
|
|
|
Net foreign exchange movements
|
|
(6.4)
|
|
13.6
|
|
|
|
|
|
Cash and cash equivalents at beginning of the period
|
|
587.5
|
|
639.7
|
Net increase/(decrease) in cash and equivalents
|
|
(352.7)
|
|
1,138.0
|
Cash and cash equivalents at end of the period
|
|
234.8
|
|
1,777.7
|
1) Net of transaction costs
Follow us on:
Twitter: https://twitter.com/SES_Satellites LinkedIn:
https://www.linkedin.com/company/ses Facebook:
https://www.facebook.com/SES.Satellites YouTube:
http://www.youtube.com/SESVideoChannel Blog:
https://www.ses.com/news/blogs Media
Gallery: https://www.ses.com/media-gallery SES
White papers are available under: https://www.ses.com/news/whitepapers
Presentation of Results:
A presentation of the results for investors and analysts will be hosted
at 12.00 CEST on 28 July 2017, and will be broadcast via webcast
and conference call. The details for the conference call and webcast are
as follows:
Belgium
|
|
|
+32 (0)2 620 0138
|
France
|
|
|
+33 (0)1 76 77 22 23
|
Germany
|
|
|
+49 (0)69 2222 10624
|
Luxembourg
|
|
|
+352 342 080 8570
|
U.K.
|
|
|
+44 (0)20 7136 2051
|
U.S.A.
|
|
|
+1 646 254 3360
|
|
Confirmation code:
|
|
|
9759865
|
|
Webcast registration:
|
|
|
http://edge.media-server.com/m/go/SES_HY_2017
|
|
|
|
|
The presentation will be available for download from the Investors
section of the SES website (www.ses.com),
and a replay will be available for two weeks from the Investors section
of the SES website.
About SES
SES is the world-leading satellite operator and the first to deliver a
differentiated and scalable GEO-MEO offering worldwide, with more than
50 satellites in Geostationary Earth Orbit (GEO) and 12 in Medium Earth
Orbit (MEO). SES focuses on value-added, end-to-end solutions in two key
business units; SES Video and SES Networks. The company provides
satellite communications services to broadcasters, content and internet
service providers, mobile and fixed network operators, governments and
institutions. SES's portfolio includes the ASTRA satellite system, which
has the largest Direct-to-Home (DTH) television reach in Europe, O3b
Networks, a global managed data communications service provider, and
MX1, a leading media service provider that offers a full suite of
innovative digital video and media services.
Further information available at: www.ses.com
Disclaimer
This presentation does not, in any jurisdiction, and in particular not
in the U.S., constitute or form part of, and should not be construed as,
any offer for sale of, or solicitation of any offer to buy, or any
investment advice in connection with, any securities of SES nor should
it or any part of it form the basis of, or be relied on in connection
with, any contract or commitment whatsoever.
No representation or warranty, express or implied, is or will be made by
SES, its directors, officers or advisors or any other person as to the
accuracy, completeness or fairness of the information or opinions
contained in this presentation, and any reliance you place on them will
be at your sole risk. Without prejudice to the foregoing, none of SES or
its directors, officers or advisors accept any liability whatsoever for
any loss however arising, directly or indirectly, from use of this
presentation or its contents or otherwise arising in connection
therewith.
This presentation includes "forward-looking statements". All statements
other than statements of historical fact included in this presentation,
including, without limitation, those regarding SES's financial position,
business strategy, plans and objectives of management for future
operations (including development plans and objectives relating to SES
products and services) are forward-looking statements. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual
results, performance or achievements of SES to be materially different
from future results, performance or achievements expressed or implied by
such forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding SES and its subsidiaries and
affiliates, present and future business strategies and the environment
in which SES will operate in the future and such assumptions may or may
not prove to be correct. These forward-looking statements speak only as
at the date of this presentation. Forward-looking statements contained
in this presentation regarding past trends or activities should not be
taken as a representation that such trends or activities will continue
in the future. SES and its directors, officers and advisors do not
undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006621/en/
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