SES S.A. has released its financial results for the first half of 2024, reporting stable performance that supports its full-year outlook. The company recorded revenue of €978 million, a slight decrease of 0.6% year-over-year, and an adjusted EBITDA of €525 million, down 0.9% year-over-year. The Networks segment showed positive growth of 5.0%, driven by an 8.4% increase in the Government sector. Conversely, the Video segment experienced a decline of 6.7%, despite securing significant long-term renewals.
SES also reported an adjusted free cash flow of €146 million and maintained a net leverage ratio of 1.7x, with cash and cash equivalents amounting to €2.1 billion. The company reaffirmed its 2024 revenue outlook, projecting between €1,940 million and €2,000 million, and expects adjusted EBITDA to fall in the upper half of its forecasted range of €950 million to €1,000 million.
H1 2024 revenue and Adjusted EBITDA were in line with our expectations reflecting solid execution. We are on track to deliver on our Full Year 2024 financial objectives. Networks, which now represents more than 50% of our business, continued to grow supported by key wins in the government segment, while our Media business secured additional customer commitments to reinforce our solid cash generation fundamentals.
Adel Al-Saleh, CEO, SES
The entry of O3b mPOWER into commercial service in April was a key milestone for SES with committed customers now being deployed onto the system. We remain on track to expand the initial constellation starting with the next launch of satellites 7-8 at the end of this year, followed in 2025 with satellites 9-11 and 2026 with satellites 12-13, accelerating our profitable long-term growth trajectory.
With the launch of ASTRA 1P to 19.2E in June, we are leveraging the latest technological innovation to sustain our most important cashgenerative media neighbourhood for the long-term, while simultaneously capturing significant CapEx efficiencies.
We remain focused on strategic execution, which is anchored by efficiency in every aspect of our operations; customer-centric solutions for our Government, Mobility, Fixed Data, and Media clients; and continuous innovation in our intelligent, managed multi-orbit network, while maintaining SES’s broadcast quality and global audience.
Lastly, and most significantly, our transformational agreement to acquire Intelsat and the integration of our two companies will, from expected closing the second half of next year, create a stronger multi-orbit operator which will be well positioned to compete with competitive end-to-end solutions in valuable growth segments of the market, strong balance sheet fundamentals, and sustained growth in Adjusted Free Cash Flow driving value for customers and shareholders. We are well underway with our integration planning and regulatory approvals process.
A significant development for SES is the ongoing acquisition of Intelsat, which is expected to close in the second half of 2025, subject to regulatory approval. This acquisition is anticipated to enhance SES’s competitive position in the multi-orbit satellite market, doubling revenue from the growing Networks segment and unlocking €370 million in run-rate synergies, with 70% realized within three years. SES projects a mid-single-digit adjusted EBITDA compound annual growth rate from 2024 to 2028, aiming for normalized adjusted free cash flow of over €1 billion by 2027-2028. The company’s investment grade rating has been reaffirmed, and net leverage is expected to drop below 3x within 12 to 18 months post-acquisition.