SES revenues up 9.1%
February 27, 2023
By Chris Forrester
SES returned to positive revenue growth in its full year results. The satellite telecommunications network provider is also now in its 2023 trading year, where the FCC’s long-awaited C-band ‘jam tomorrow’ promise becomes a $3 billion (€2.84bn) positive income.
SES issued an impressive set of guidance numbers, including detail that SES-17 and its O3b mPOWER combo have seen gross backlog up 28 per cent and now valued at more than €1 billion. Its overall 2023 guidance suggests revenue of €1.95 billion-€2 billion.
Other highlights are:
- Revenue of €1.944 billion (+9.1 per cent YOY as reported)
- Contribution from DRS Global Enterprise Solutions (DRS GES), acquired August 1st, 2022, and stronger US dollar
- Mobility driving growth in Networks (+2 per cent YOY, complemented by €450 million of renewals secured in Video (-5.5 per cent YOY)
The gradual decline in its Video division (of 5.5 per cent) is not unexpected (at €1.020bn) including the planned impact of lower US wholesale revenue and periodic revenue of €10 million in Q1 2022. Excluding these two items, Video was 4.4 per cent lower than 2021 as lower volumes in mature markets were partially offset by growth in Sports & Events and HD+.)
As at December 31st 2022, SES delivers more than 8,000 total TV channels to 369 million TV homes around the world, including some 3,200 High-Definition TV channels. Seventy-three per cent of total TV channels are broadcast in MPEG-4 with an additional 7 per cent broadcast in HEVC.
Its contracted backlog as at December 31st 2022, was €4.8 billion (€5.9 billion gross backlog including backlog with contractual break clauses).
The SES Board of Directors has proposed a 2022 dividend of €0.50 per A-share (€0.20 per B-share), consistent with its stable to progressive policy. Subject to shareholders’ approval at the Annual General Meeting (April 6th), the dividend will be paid on April 20th.