The report shows that with revenue of €436 million and an adjusted EBITDA of €268 million the adjusted net profit has grown to €75 million YOY.
Key findings of the report are:
• Solid Networks performance (flat YOY) in the COVID environment with strong prospects for future growth
• 7% YOY reduction in recurring Operating Expenses, reflecting S&A gains, supporting higher YOY Adjusted EBITDA margin (61%)
• Solid cash flow generation and financial discipline supporting lower YOY leverage ratio of 3.1 times at 31 March 2021
• Adjusted Net Profit up 42% YOY to €75 million
“We have made a strong start to 2021 with the resilience of our Video business to the fore on the back of a number of important renewals and extensions secured at our core European neighbourhoods. Networks business performance was also solid in Q1, notwithstanding the near-term COVID environment, with new deal flow beginning to pick up. We continue our laser focus on removing cost from the business and minimising discretionary spend with a 7% year-on-year reduction in operating expenses, leading to improving EBITDA margin. In summary, our start to the year puts us firmly on track to deliver on our 2021 financial outlook which remains unchanged.”
Steve Collar, CEO of SES
According to the company, it is on track to deliver its 2021 outlook. Growth investments and C-band proceeds are supporting future growth and value creation. In Q1, over 85% of the company’s 2021 revenue outlook is already under contract, valuing €1,760-1,820 million.
“I am excited by the progress that we are making in securing customer commitments for SES-17 and O3b mPOWER ahead of launch in the second half of 2021, and the level of market interest that we are seeing across all Networks verticals. These important growth investments allow us to offer a significantly expanded set of low latency products and solutions to the market as the world emerges from the COVID environment and demand for connectivity increases exponentially. We are also on course with the clearing of C-band in the US and are continuing to pursue opportunities to create additional shareholder value from further monetisation initiatives.”
Steve Collar, CEO of SES
€100M Share Buyback programme
The company will purchase up to 12 million A-shares and up to 6 million B-shares in equal proportion to maintain the ratio of two A-shares to one B-share, as required by the Articles of Association. The aggregate value of the programme shall not exceed EUR 100 million and the shares acquired under the programme are intended to be cancelled to reduce the total number of voting and economic shares. SES affirms its commitment to maintain balance sheet metrics consistent with investment grade ratios.
“The share buyback programme that we are announcing today reflects our confidence in the long-term fundamentals of the business. The current share price does not reflect the underlying value of SES and this programme represents an attractive opportunity to deploy capital for the optimal benefit of our shareholders. SES is uniquely positioned with targeted and differentiated growth investments fuelling future top line and EBITDA growth with strong cash flow enhanced by meaningfully lower capital expenditure, as well as the proceeds from our C-band initiative.”
Steve Collar, CEO of SES
