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  • Satellite Evolution

SES full year 2020 results - A strong year of execution

Third successive year delivering EBITDA outlook despite challenging COVID-19 environment in 2020

  • Growth engine Networks revenue +5% YOY(1,2), or +27% since 2017, and Video revenue of €1,108 million in line with expectations

  • Adjusted EBITDA(3) of €1,152 million delivered within pre-COVID-19 financial outlook and at high end of mid-year outlook

  • Strong net cash generated from operations of €1,049 million representing 97% of reported EBITDA

Commitment to disciplined financial policy and shareholder returns

  • Solid cash flow generation driving €505 million YOY debt reduction and lowest leverage ratio(4) (of 2.97 times) over the past 5 years

  • Proposed 2020 dividend of €0.40 per A-share consistent with commitment to maintain a minimum base dividend of €0.40

  • On track to realise $4 billion pre-tax from US C-band clearing with end-2021 milestone triggering the first $1 billion in accelerated clearing payments to be fully used for deleveraging

Resilient 2021 outlook reflecting current market with substantial growth investments supporting Revenue, Adjusted EBITDA and FCF growth from 2023

  • Over 80% of 2021 group revenue outlook of €1,760-1,820 million(5) already under contract. Continued focus on operational excellence, reducing cost and discretionary spending supporting 2021 Adjusted EBITDA(3) outlook (€1,060-1,100 million(5))

  • SES-17 and O3b mPOWER, with gross backlog up 40% since Q3 2020 to $740 million(6), to launch in 2021, driving an acceleration of growth in Networks from 2022 onwards and sustained profitable revenue and Adjusted EBITDA growth for SES from 2023

  • CapEx reduced by €390 million over 2020-2024 compared with previous forecast, lowering growth investment peak in 2021-2022 and followed by substantially lower average annual CapEx of €375 million (2023-2025)

Steve Collar, CEO of SES, commented: “2020 was a strong year for SES. The combination of considerable commercial execution and laser focus on controlling discretionary spending ensured that, despite the COVID-19 environment, we protected the bottom line with Adjusted EBITDA in line with our pre-COVID-19 outlook and at the top end of our mid-year outlook. We successfully executed our Simplify & Amplify programme delivering OpEx savings of €50 million from 2022 onwards, while Net Debt and leverage is at a 5-year low on the back of strong cash generation.

2020 was a landmark year for our US C-band initiative, starting with the FCC’s final Report and Order and ending with the record-breaking spectrum auction, crystallising SES’ opportunity to earn $4 billion in accelerated relocation payments. The clearing is on track and we expect to meet the December 2021 and December 2023 deadlines.

We secured more than €1.3 billion in customer agreements in the year including an important long-term commitment with Canal+ covering multiple orbital positions; contract extensions with public and commercial broadcasters across our prime video neighbourhoods; new MEO-GEO-based solutions for the US Government; new Telco and MNO connectivity solutions in Latin America and Asia; and, in return for supporting customers whose businesses are especially affected by COVID-19, secured additional backlog in Cruise and Aero.

Our recently announced renewal and extension with Sky means that, to date, we have added more than €440 million in contract backlog at our core video neighbourhoods since the end of Q3 2020. 2020 was a year like no other for our employees and customers alike. We moved swiftly and successfully into a remote office environment, protecting customer and satellite operations in the process. I could not be more grateful to SES employees for their resilience and commitment to supporting our customers.

2021 represents a year of unique and significant opportunities for SES. It will see us realise the first $1 billion from C-band repurposing and execute on a strong pipeline of commercial opportunities to further grow, driven by the increasing backlog of now $740 million for SES-17 and O3b mPOWER ahead of launch in the second half of 2021. These assets form the bedrock of our unique, multi-orbit value proposition to serve the strong and expanding demand for data across all our segments and will drive sustained, profitable growth for SES in the years ahead.”


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