Page 56 - SAMENA Trends - May-June 2024

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

SES to Buy Intelsat for $3.1bn

Luxemburg-based satellite company SES Earth Orbit satellites. The deal gives Intelsat expected to close in the latter half of next
has signed a deal to buy Intelsat Holdings an enterprise value stands of $5 billion, year, pending regulatory approval. The deal
for $3.1 billion. A joint press release with SES suggesting the deal will deliver represents the latest stage in consolidation
from the two companies explained the synergies worth €2.4 billion ($2.6 billion). of the global satellite industry, as European
combination as creating “a stronger multi- “Going forward, customers will benefit from companies attempt to compete against
orbit operator with greater coverage, a more competitive portfolio of solutions newer rivals such as Elon Musk’s Starlink,
improved resiliency, expanded suite of with end-to-end offerings in valuable which launched in 2019 and has come to
solutions, enhanced resources to profitably Government and Mobility segments, dominate in terms of sheer scale. However,
invest in innovation, and benefit from the combined with value-added, efficient, and in terms of financials and with its well-
collective talent, expertise, and track record reliable offerings for Fixed Data and Media established customer base, this newly
of both companies.” Once combined, customers,” said SES CEO Adel Al-Saleh. combined SES–Intelsat could become an
SES’s orbital assets will include 100 Now, the deal has been unanimously even more significant player in the satellite
Geostationary Earth Orbit and 26 Medium approved by both company boards and is communications industry.

SES Releases Q1 2024 Results

SES S.A. announced financial results for net outflow in Q1 2023 October 2024
the three months ended 31 March 2024 • Net Leverage at 1.5x including cash & • Outlook for FY 2024 Revenue, Adjusted
and a solid start to the 2024 financial year. cash equivalents of €2.4 billion EBITDA, and capital expenditure on track
• Revenue of €498 million (+2.5% YOY) and • Landmark quarter with 2nd generation and re-affirmed
Adjusted EBITDA of €275 million (+4.7% MEO constellation, O3b mPOWER, Adel Al-Saleh, CEO of SES, commented:
YOY) beginning customer services in April “The first quarter results demonstrate our
• Networks up 9.6% YOY including periodic 2024 solid start to the year, and we continued
revenue, with Video performance (-5.2% • €220 million dividend payment (€0.50 to deliver commercial momentum across
YOY) in line with expectations per A-share) made to shareholders in the business, underpinning our FY 2024
• More than €125 million of new business April, complemented by on-going share financial outlook which is on track and
and contract renewals signed in Q1 2024 buyback of up to €150 million and unchanged. Our Networks business now
• Adjusted Free Cash Flow of €38 million interim dividend of €110 million dividend accounts for over 50% of revenue and
net inflow compared with €(41) million payment (€0.25 per A-share) to be paid in delivered YOY growth including periodic
revenue from a contract modification
which allowed us to recontract capacity
on our highly contended MEO fleet and
generate incremental cash flows. In Video,
our Sports & Events offering continued to
be the standout performer, adding to its
impressive line-up of customers with an
exciting new agreement with a global tier
one sports brand to distribute live content
to audiences across the world. April 2024
delivered a landmark milestone for SES
with the entry into commercial service of
O3b mPOWER, our next generation MEO
constellation, strengthening our capability
to deliver competitive and differentiated
customer solutions in valuable, high growth
government, mobility, and fixed data
markets. The next O3b mPOWER satellites
(7-8) are on track be launched in late 2024
launch and bring improved resiliency to the
network which will be further expanded
with the launch of satellites 9-11 plus 12 &
13 in 2025 and late 2026 respectively.”

56 MAY-JUNE 2024