Half Year 2024 SES SA Earnings Call Transcript
Key Points
- SES SA (SGBAF) reported half-year revenue and adjusted EBITDA fully in line with projections, with adjusted EBITDA tracking to the upper half of the range.
- The networks business showed strong performance, accounting for over 54% of total revenue, with significant wins in the government sector and strong growth in the cruise segment.
- The successful launch of ASTRA 1P in June is expected to sustain long-term cash flows for the Media business, serving almost 120 million households.
- The transformational agreement to acquire Intelsat is expected to create a stronger multi-orbit operator, enhancing competitive positioning and driving value for stakeholders.
- The company has a strong balance sheet with over EUR2 billion in cash, and has confirmed investment-grade ratings from Moody's and Fitch post-Intelsat acquisition announcement.
- The media segment faced headwinds, particularly due to a significant impact from a customer bankruptcy in Brazil, which is expected to result in lower revenue in 2025.
- Fixed data revenue declined by 15% in Q2, impacted by lower revenue from Europe and Asia, and the company is facing challenges in this segment.
- The company expects a 5% impact on media revenue in 2025 due to the Brazilian customer issue, which will be on top of the mid-single-digit decline already anticipated.
- Despite strong performance in networks, the company faces structural headwinds in mature markets like North America and Asia, particularly in the media segment.
- The company is undergoing a significant integration process with Intelsat, which involves regulatory clearances and detailed integration planning, posing potential execution risks.
Hello, and welcome to the SES, Half Year 2024 Results. My name is Caroline, and I'll be your coordinator for today's event. Please note this call is being recorded and for the duration of the call your lines will be on listen-only mode. However, you'll have an opportunity to ask questions at the end of the call. [Operator Instructions].
I will now hand over the call to your host, Richard Whiteing, Head of Investors Relation to begin today's conference. Thank you.
Good morning, everyone. Thanks for joining this analyst and investor call for the H1 2024 results. The presentation was uploaded along with the press release to the Investors section at ses.com, if you don't already have it. As always, please note the disclaimer on Page 2. The agenda as for today is outlined on Page 3.
In a moment, Adel Al-Saleh, our CEO, will present the main business highlights, followed by Sandeep Jalan, CFO to cover the financials in more detail. After some closing remarks from Adel, we will take your
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