SES Announces Q1 2023 Results

SES S.A. announces financial results for the three months ended 31 March 2023. 

• Solid Q1 2023 performance and on track to deliver Full Year 2023 financial outlook
• Revenue of €490 million (+9.6% YOY as reported) including contribution from DRS Global Enterprise Solutions and stronger US dollar
• Differentiated Networks business +2.9% YOY including double digit growth in Mobility
• €90 million in new business signed in Mobility since 31 March 2023, including significant wins in Aviation and Cruise
• €110 million of renewals and new business in Video (-5.0% YOY) demonstrating long-term attraction of our core neighbourhoods
• Adjusted EBITDA of €265 million (-3.2% YOY as reported) representing a margin of 54%
• 2023 outlook unchanged and on track (Revenue of €1,950-2,000 million and Adjusted EBITDA of €1,010-1,050 million)
   

Strong execution in delivering on key strategic initiatives in 2023 

• First 4 O3b mPOWER satellites launched and next 2 satellites planned to launch in June 2023, paving the way for start of commercial service in late Q3 2023 with customers ramping onto the system through Q4 2023
• SES-17 & O3b mPOWER backlog of $1 billion with additional commitment of €195 million from Luxembourg government 
• US C-band Phase II on track: SES-18 & SES-19 launched, >95% of satellite transitions completed, and >90% of ground filters installed
• Well positioned for the European Commission’s IRIS2 via strong consortium of space and telecom players focused on creating a state-of-art, multi-orbit space-based infrastructure for European governments and their citizens 

Steve Collar, CEO of SES, commented: “2023 has started well with solid Q1 results and excellent progress on both O3b mPOWER and our US C-band project. Close to double digit revenue growth as reported reflects the contribution from our acquisition of DRS GES, while solid EBITDA performance underscores our continued focus on execution across the business.  

We have good market traction with a number of deals signed since the start of the year with €90 million of backlog added in Mobility; a substantial upgrade with CNT in Ecuador including a transition to O3b mPOWER; a 5-year renewal with long standing customer US Army WIN-T programme; and a number of multi-year extensions, on excellent commercial terms, with private and public broadcasters in Germany underscoring the value of our industry-leading video neighbourhoods. 

With the successful launch of the 2 remaining C-band satellites, our project to clear C-band spectrum to support 5G services across the US is entering its final phase, and we remain fully on track to earn $3 billion in accelerated clearing payments before year-end. 

O3b mPOWER will deliver industry-leading capabilities, broaden our commercial market reach, and form a critical layer for sovereign Government solutions such as Luxembourg’s MEO Global Services programme. We are pleased to bring our multi-orbit credentials to a strong consortium formed of leading European space and telecom operators under the frame of the European Commission’s IRIS2 project. Last week was a good week for O3b mPOWER with 2 more satellites launched successfully. We now have 4 satellites in orbit with the last 2 of the initial constellation slated for a June launch. Our ground networks are ready, customer terminals are being deployed and we anticipate commercial launch in Q3 in what promises to be an exciting year for SES in 2023.”