Trading conditions in international markets continue to be challenging for SES’s video business. Recently launched customer platforms are struggling to build traction, while competition to established platforms remains intense.
In its latest set of results, the company notes that SES Video had underlying revenues of €967.5 million in the year to September 30, or 2.8% lower than in the same period last year at constant FX. In addition, it had periodic revenues of €9.9 million.
Meanwhile, its Q3 underlying revenues at constant FX were 3.8% lower at €12.4 million.
Underlying revenues for video distribution for the first nine months of this year were, at €724.8 million, 4.7% lower a year earlier, and those for video services 3.5% higher at €242.7 million.
On the operational side, SES delivered a total of 8.020 TV channels as of the end of September (+4% year-on-year), of which 2,795 (+7%) were HD and 40 commercial UHD (+67%). Almost two-thirds (65.4%) of TV channels were broadcast in MPEG-4 (63.5% in Q3 2017).
SES Video accounted for 67% of the company’s revenues in the first nine months of the year, down slightly from 68% in 2017.
SES Group’s revenues YTD were €1,469.4 million (-3.8%, +0.4% contact FX) and EBITDA €927.7 million (-6.7% reported, -2.9% constant FX).
The net profit, at €303.7 million, was 23% lower than in the corresponding period in 2017.
In his commenting on the results, Steve Collar, president and CEO, said: “Our focus on execution continues to generate strong financial performance, delivering growth in absolute and underlying revenue, and we remain on track to deliver on our year-end financial outlook”.
On SES Video he added that it had, “signed important renewals and new business this quarter with now 96% of 2018’s expected total revenue secured, including an important renewal with Channel 4 in the UK Video Services contributed positively in Q3 with growing traction for our MX1 360 platform. International video distribution remains challenged with some platforms struggling to achieve market traction and strong competition for all new platforms. We remain focused on growth opportunities while reinforcing our core neighbourhoods that are among the best and most penetrated DTH neighbourhoods in the world”.