2019, profits fall as SES changes corporate structure | Satellite | News

After a year that can only be described as disappointing, especially for its video business, the satellite operator SES has revealed a major overhaul of its corporate structure.
For the year ended 31 December 2019, SES recorded group revenues of €1.984 billion, down 1.3% on a reported annual basis and down 3.8% at constant exchange rates. constant financial changes. Group EBITDA amounted to €1.217 billion, down 3.1% as reported compared to the same period a year ago and down 5.5% year-on-year the other at constant exchange rates.

The company admitted that revenue was below expectations as it missed a key contract in its video business which it said continued to respond to the continued shift in media consumption with DTH and cable customers, capacity of “adjustment”, resulting in a 7.8% decline in underlying revenue. Yet the company it has now brought 3,000 HD and Ultra HD TV channels to audiences around the world.

The company’s new development program, called Simplify and Amplify, will be implemented throughout 2020 and includes a series of strategic actions which the company hopes will enable it to best meet its stated objective. in terms of experiences. This is the next phase of a process that began in 2017 when SES first created separate units for its video and data businesses.

SES says it sees “tremendous” opportunities in its core markets given the changing dynamics of the video and data industries, and the program is designed to position SES as the global leader in content connectivity solutions, positioning it as the partner of choice for major broadcasters.

The program has four key elements: creating pure-play verticals; focus on strengths; simplify operations; innovate for the future.

With regard to the first element, SES indicates that it will explore the creation of two “pure” vertical markets through the potential separation of its Networks business within SES in order to foster strategic and operational focus, provide increased external visibility and appropriately configure global business for the future. This structure would also enable focus on cash generation and value retention priorities within SES’s video business, utilizing its core direct broadcast (DTH) neighborhoods and global reach.

SES also plans to realign its resources to simplify operations, maximize efficiency and facilitate business relationships with the company. Activities will include the consolidation and reorganization of certain functions to reflect any changes in the scope and structure of the business. Additionally, the company is planning a comprehensive review of its global footprint. Overall, the company expects to generate EBITDA optimization of EUR 40-50 million per year from 2021 through a focus on core strengths and business simplification.

“Our vision is content and connectivity everywhere, and we are positioning SES to deliver on that vision and deliver growth and value to our customers in their rapidly changing markets,” commented Steve Collar, CEO of SES. “This next phase of our strategic transformation is designed to ensure that we prepare SES for an exciting future while delivering on our commitments to our customers and to the market today. In doing so, we will make SES an easier organization to do business with and deliver substantial value to all of our stakeholders.

In its outlook for 2020, the company said it expects revenue of €1.920-2.00 billion and EBITDA of €1.150-1.210 billion, reflecting a more cautious view of developments. video revenue and a somewhat lower growth trajectory. exit 2019 in the network business.