“Our 2024 financial performance firmly demonstrates that our evolved strategy is showing results. Our laser-focus on execution and operational efficiency delivered revenue at the top end of our outlook and adjusted Ebitda exceeding our target, establishing a stable foundation from which to drive profitable growth, sustained free cash flow generation, and sustainable, long-term shareholder value. We also made excellent progress on the transformational and value accretive acquisition of Intelsat and reaffirm all previously announced financial targets for the combined company,” commented SES CEO Adel Al-Saleh, in his first full year at the helm. Non-adjusted Ebitda plunged by €2.7bn, which corresponds to the financial impact of US C-band repurposing and other significant special items.
“Networks delivered a third consecutive year of growth underlining the strong right to win in target segments of our differentiated multi-orbit offering, strengthened in 2024 with the successful entry into commercial service of the O3B Mpower MEO constellation. We have executed on a strong commercial pipeline with €760m of signings including notable wins with Nato, the US government, Thai Airways, Turkish Airlines, Virgin Voyages, Telebras, Orange and others. We were also delighted to secure the contract as the trusted partner for the flagship Iris2 sovereign connectivity network which will become Europe’s multi-orbit network of choice,” added the press release.
The Media business line continues to decline in SES’ balance, although the communiqué added that “Media delivered to expectations with a stable outturn in our important DACH business and double-digit growth in sports & events, while we secured €650m of renewals and new agreements with major broadcast customers such as Sky, RTL, QVC, Warner Brothers Discovery, ORS/ORF and ProSiebenSat.1, underpinning the long-term cash generation fundamentals of this business.”
SES expects a “solid operational performance” in 2025 with an acceleration in networks revenue, the entry into service of O3B Mpower satellites 7 and 8 and the launch of the next three, as well as the completion of the Intelsat acquisition. Discussions are continuing with insurers regarding the $472m related to the default of satellites 1 to 4, following Boeing’s recognition that their lifespan would be shorter than expected, which has delayed SES’ strategy.
Adjusted net debt to adjusted Ebitda ratio (treating 50% of €1.587bn of hybrid bonds as debt and 50% as equity) was 1.1x at 31 December 2024 (compared to 1.5x at 31 December 2023), the company said. Cash & cash equivalents of €3.2bn (excluding €300m of restricted cash with respect to the SES-led consortium’s involvement in Iris2) included the proceeds from the hybrid dual-tranche bond offering of €1bn completed at the beginning of September 2024. SES repaid €717m of gross debt during 2024.
The full-year 2024 interim dividend of €0.25 per A-share (€0.10 per B-share) was paid to shareholders on 18 October. The board proposes a final dividend of €0.25 per A-share (€0.10 per B-share) to be paid to shareholders in April 2025,giving a full-year 2024 dividend of €0.50 per A-share (€0.20 per B-share), in line with the company’s commitment to a stable to progressive dividend policy, said the press release. For the calendar year 2024, SES paid a total of €0.75 per A-share (€0.30 per B-share) in dividends. A share buyback programme of €150m was completed in respect of the A-shares in October 2024 with 24m A-shares purchased at an average price of €5.22 per A-share and 12m B-shares were purchased at an average price of €2.09 per B-share. The shares acquired will be cancelled after the expiry of one year.
This article was originally published in .