• Revenue: EUR1.475 billion, broadly stable year-over-year at constant foreign exchange rates.

• Adjusted EBITA: EUR775 million, a 2% decrease year-over-year.

• Adjusted Free Cash Flow: EUR262 million, a 5% increase year-over-year.

• Net Profit: Adjusted net profit of EUR116 million.

• OpEx Reduction: 4% reduction in controllable operating expenses.

• Customer Contracts: EUR900 million in new contracts, with a gross backlog of EUR4.6 billion.

• Cash Returns to Shareholders: EUR450 million in 2024, including interim dividend and share buyback.

• Networks Revenue Growth: 3% year-over-year increase.

• Government Revenue Growth: 7.2% increase.

• Mobility Revenue Growth: 5% increase.

• Fixed Data Revenue: Year-to-date decline of 7.4%.

• Media Revenue Decline: 5.5% year-to-date decline.

• Sports Events Revenue Growth: Double-digit growth.

• Media Backlog: EUR2 billion with EUR355 million in new business signed.

• Net Leverage: 1.1 times at the end of September.

• Cash and Cash Equivalents: EUR3.2 billion.

• CapEx: Expected within EUR500-550 million for 2024.

• Warning! GuruFocus has detected 8 Warning Signs with SGBAF.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SES SA (SGBAF) is tracking towards the top end of its 2024 outlook, supported by strategic wins and strong commercial momentum.

• The company reported a 3% year-on-year growth in networks revenue and a nearly 4% reduction in controllable OpEx, showcasing operational excellence.

• SES SA (SGBAF) secured EUR900 million in customer contracts, contributing to a gross backlog of EUR4.6 billion.

• The company maintains a sector-leading investment-grade balance sheet and returned EUR450 million to shareholders in 2024 through dividends and share buybacks.

• SES SA (SGBAF) is making progress with its Empire Meo constellation deployment and the regulatory process for the Intelsat acquisition is on track.

Negative Points

• The media business experienced a year-to-date decline of 5.5%, with expectations of a mid-single-digit decline for the full year.

• Fixed data revenue was down 7.4% year-to-date, impacted by periodic revenue from the previous year.

• Adjusted EBITA decreased by 2% year-over-year, despite improvements in trend compared to the previous year's decline.

• The company incurred EUR41 million in exceptional expenses related to restructuring and M&A costs.

• The insurance claim process related to Boeing is complex and progressing slowly, with no substantial settlements yet.

Q & A Highlights

Q: Given the better trends this quarter and raised guidance, is SES building more confidence in achieving organic revenue growth stability in 2025? Also, could CapEx for SES and Intelsat combined exceed EUR650 million towards the end of the decade? Lastly, can you break down the significant special items of EUR21 million in Q3? A: Our confidence in achieving business stability and growth is high. We are focused on ensuring stability in 2025, and our guidance for the combined company is EUR600-650 million of sustained CapEx. The EUR21 million in special items primarily includes M&A-related costs and restructuring expenses, with the majority being M&A costs. Adel Al-Saleh, CEO, and Sandeep Jalan, CFO.