SES (SESGL) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was €978 million, with Adjusted EBITDA of €525–528 million, both stable year-over-year and in line with projections.

• Networks segment showed strong growth, now over 54% of total revenue, driven by government (+8.4%) and mobility (+11.1%) segments.

• The launch of mPOWER and Astra 1P satellites marked key milestones, supporting long-term growth and media business stability.

• The Intelsat acquisition, a €3.1 billion all-cash deal, is expected to close in H2 2025, creating a stronger multi-orbit operator and delivering €370 million in run-rate synergies.

• New customer wins in government and media sectors, including U.S. Air Force and RTL Deutschland.

Financial highlights

• H1 2024 revenue: €978 million; Adjusted EBITDA: €525–528 million (margin 54%), both stable year-over-year.

• Adjusted Free Cash Flow: €146 million, up 70% year-over-year, aided by lower CapEx.

• Adjusted Net Profit: €111 million, down €5 million year-over-year, impacted by higher D&A and tax.

• Contract backlog at €3.8 billion, with €430 million in new signings in H1.

• Dividend of €0.50 per A-share paid in April; interim dividend of €0.25 per A-share to be paid in October.

Outlook and guidance

• Full-year 2024 revenue expected at €1.94–2.0 billion, with H2 growth driven by mPOWER ramp-up.

• Adjusted EBITDA expected in the upper half of €950–1,000 million range.

• CapEx guidance maintained at €500–550 million for 2024.

• Combined company (post-Intelsat) expected to generate over €1 billion normalized adjusted free cash flow by 2027–2028.

• Media revenue in H2 expected to be at least similar to H1; 2025 media revenue to face a 5% headwind due to a Brazilian customer bankruptcy, with mitigation planned.