End of 2021…

Steve Kollar, CEO of SES, noted that 2021 was a successful year for SES, as adjusted EBITDA and EBITDA were in line with our goals. More than 1.2 billion euros have been renewed in renewed contracts and new business victories. Adjusted net income increased, reflecting our focus on all cost items, and net debt relative to EBITDA was the lowest in six years.”

59% of the group’s revenue brings video

SES on December 31, 2021 Broadcast a total of 8,386 TV programs (1% annual increase) to more than 355 million homes worldwide. This includes about 3,105 HDTV channels, up 6% from the previous year. Up to 71% of all TV programming over the SES network is broadcast in MPEG-4 format, and an additional 5% is in HEVC.

The annual growth of HD + in Germany can be attributed to the increase in subscription prices and the number of subscribers. The introduction of new products such as HD + ToGo (launched October 2021) and HD + IP (launched February 2022) will encourage further business development in the future. Revenue in the international market remained unchanged on an annual basis, while revenue from sports and events continued to grow, also thanks to improved efficiency compared to 2020, which was impacted by cancellations and delays due to the COVID-19 pandemic.

Networks: 41% of group revenue

The positive contribution of new network solutions from MEO and GEO satellites, as well as enterprise solutions, have increased revenue year-over-year for US and global customers. This was partially offset by the phasing out of some services in the third quarter of 2021 as a result of the US withdrawal from Afghanistan.

In fixed data, core revenue is down single digits compared to annual revenue in the Pacific region and wholesale in Africa, and has not yet been offset by the steady growth of new business from major mobile operators (particularly in the US and Asia). Plus new revenue in the global cloud segment). Long-term fundamentals remain strong, with improved revenue in the second half of 2021 reflecting a rebound in cruise companies as ships reopen, while new business provided additional capacity for commercial airline customers.

Future satellite launch

In October 2021, the French private company Arianespace, which carries out space launches, successfully launched the SES-17 satellite. This high-bandwidth Ka-band satellite is expected to become commercially operational in mid-2022 and will provide broadband in the Americas, the Caribbean and the Atlantic. The SES-17 satellite will be used by our major customer, Thales Avionics, to provide network solutions to commercial aviation service providers in North America.

In November 2021, SES commissioned two geostationary satellites in the Ku band of the main orbital aperture at 19.2° East to maintain superior services to its European customers providing video content and take advantage of new opportunities in the region. These two replacement satellites (ASTRA 1P and ASTRA 1Q) are expected to replace the four satellites (ASTRA 1KR, ASTRA 1L, ASTRA 1M and ASTRA 1N) currently serving users at this orbital location, increasing efficiency by more than 50% capital reduction. The tunnel needs to be 19.2 degrees east.

Some commercial facts

2021 was marked by strong operations with revenue of €1.782 million and operating profit adjusted before depreciation (EBITDA) of €1.091 million, at the upper end of financial expectations.

  • Improved video content transmission (-4.6% YoY last year compared to -8.0% YoY in 2020) ahead of our financial forecasts.
  • Network resilience, +0.5% y/y in an environment affected by the codiva-19D epidemic.
  • Adjusted net profit increased 69% to €323 million, including benefits from lower recurring operating costs, depreciation and amortization.
  • The proposed dividend for 2021 (paid in 2022) is €0.50 per local share (share), an increase of 25% year over year.

SES is on its way to higher incomes in 2022 and adjusted EBITDA, as well as delivering long-term value through differentiated growth investments.

  • Approximately 85% of the group’s planned revenue for 2022 (€1,750-1,810 million) has already been contracted.
  • The revised EBITDA forecast for 2022 (€1,030-1,070 million) reflects strong profitability despite additional costs to stimulate growth in the network segment.
  • More than $900 million is behind the SES-17 satellite (launch in mid-2022) and the O3b mPOWER satellite (launch scheduled for late 2022).

Additional information is available at: www.ses.com.

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