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SES Global reports net profit increase of 28.6% on revenue growth of 16.6%

August 7, 2006

2 Min Read

BETZDORF, Luxembourg -- SES GLOBAL, (Paris:SESG - News; LuxX:SESG):

HIGHLIGHTS

  • Revenues rose 16.6% to EUR 710.5 million (2005: EUR 609.2 million)

  • Increasing 8.1 % to EUR 657.0 million (2005: EUR 608.1 million) on a recurring, same scope (excluding SES NEW SKIES) and constant exchange rate basis

  • EBITDA rose 14.1% to EUR 499.5 million (2005: EUR 437.6 million)

  • Net profit rose 28.6% to EUR 215.6 million (2005: EUR 167.7 million)

  • Earnings per share rose 34.5% to EUR 0.39 (2005 : EUR 0.29)

  • New Skies acquisition completed 30 March, strengthening global coverage

  • Industry-leading backlog of EUR 6,781.7 million (December 2005: EUR 6,489.9 million)

  • Share buybacks to July 31 totalled EUR 213.3 million - primarily earmarked for cancellation as part of the share buy-back programme - with EUR 148.9 million having been spent by June 30th.

  • Net debt/EBITDA stood at 3.01 - in line with the Group's stated target - compared to 2.39 on December 31, 2005



Romain Bausch, President & CEO of SES, said,

"The first six months of 2006 were significant for the development of the SES group.

We concluded the acquisition of New Skies Satellites in order to expand our connectivity offerings as well as to strengthen substantially our positioning in emerging markets. SES NEW SKIES' performance is ahead of plan and progress in the integration makes us confident that we should achieve the synergy target. In addition, we further increased our shareholding in ND Satcom to 100%, strengthening our services capabilities in particular in the government segment.

We also continued to grow organically our core satellite infrastructure business, as well as our services activities, at a high single-digit rate. This growth came from increased demand for satellite capacity and services in the media, enterprise and government segments in our main markets of Europe and North America. In order to expand and renew our global satellite fleet, we successfully launched one satellite (ASTRA 1KR) in April this year, started the procurement of three others (AMC-21, CIEL-2 and AsiaSat 5), and will initiate two further programmes (ASTRA 3B and NSS-9) in the second half of 2006. These new satellites will allow us to continue to drive organic growth into the future.

We also launched a digital infrastructure project in the German market which should facilitate the smooth transition from analogue to digital broadcast technology with all its attendant benefits for the consumer. For SES, this represents an exciting opportunity to develop a new, profitable revenue stream.

In addition to these value-creating growth initiatives, we continued to deliver on our share buy-back programme, with EUR 213.3 million being spent by the end of July, thereby optimising our capital structure.

In sum, the first half has been a busy and productive time for SES and our solid performance throughout supports our efforts as we focus on achieving our objectives for the balance of the year."

SES S.A. (Paris: SESG)

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