SES Profit Takes A Nosedive In Third Quater
Satellite operator SES said it was ready to deliver on its full-year 2018 and 2020 guidance, with growth year-to-date in underlying and absolute and revenue. For the third quarter, revenue gains were recorded for the first time in a very long while at all three of SES Networks’ business verticals.
Revenues were calculated to have been EUR 488 million in the third quarter, a decline from the previous quarter’s recorded 503.8 million. Underlying revenues increased to EUR 484.2 million from 486.9 million in the second quarter, putting periodic revenues at EUR 3.5 million, which is lower than the 16.4 million reported the previous year. Year-on-year, underlying revenues were 3.2 percent higher. Group EBITDA moved up by a little bit to EUR 306.6 million from 306 million the in the past year, though the margin dropped to 62.8 percent from 64.2 percent. The net profit, however, took a nosedive to EUR 76.0 million from 119 million year-on-quarter.
By segment, underlying revenues increased by 19.5 percent year-on-year to EUR 166.7 million at SES Networks, though they dropped by 3.8 percent to EUR 317.5 million at SES Video and 5.8 percent at Video Distribution. Underlying revenues went up by 3.1 percent at Video Services, increased by 28.1 percent higher to EUR 69.1 million at Government, climbed 1.7 percent to EUR 55.5 million at Fixed Data and increased by 36.1 percent to EUR 41.6 million at Mobility.
For the year to date, underlying revenues increased by 2.1 percent from the year before to EUR 1.469 billion, with the 13.6 percent climb at SES Networks offsetting the 2.8 percent drop at SES Video. The EBITDA amount for the first nine months fell to 63.1 percent from 65.1 percent. Excluding a restructuring fee of EUR 9.7 million, the EBITDA margin stood at 63.8 percent. The net profit, as creditable to shareholders, decreased to EUR 303.7 million from 394.5 million. Free cash flow, however, went up by 29.2 percent to EUR 593.0 million.