Posts Tagged ‘Karim Michel Sabbagh’

SES Video Revenue Grows 7.5% in 2015

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Mar 03 2016

Satellite service provider SES reported full year 2015 results for its Video business of €1,354.9 million, a 7.5% increase versus 2014.  On a constant currency basis the year-over-year growth was reduced to 2.2%. SESLogo

For the 2015 year, the Video division contributed 67% of SES’s total revenue, a slight increase when compared to the 66% level of contribution in 2014.

In SES’s presentation to investors, Management highlighted several commercial developments within its Video business.  In particular, SES highlighted the securing of new contracts and the expansion of existing customer relationships with several high-profile media organizations including the BBC World News, Deutsche Welle, Viasat, Scripps Networks Interactive, StarTimes, Canal Holdings, and Televisa.

Also a part of the earnings release, SES announced the acquisition of RR Media, a provider of media services to the broadcast and media industries.  The Company intends to merge the operations of RR Media with its Platform Services group to create a larger global media solution provider.

 

Update on TV Channel Counts

The earnings release reviewed the TV channel growth over SES’s satellite network during 2015.

Total channels were 7,268 at the end of 2015, representing an 11.3% year-over-year growth versus the end of 2014.  Management disclosed that nearly 60% of all channels are now broadcast in the MPEG-4 compression standard.

HDTV channels distributed by SES grew 18.3% to 2,230.

The channel count for Ultra HD (UHD) is now eight in total.  Those channels are pearl.tv, Fashion One 4K, Airtel 4K, Dish UHD Promo, High 4K TV, INSIGHT, Nasa TV UHD and UHD-1.  In addition, a commercial agreement was signed in July 2015 to provide Sky Deutschland with additional capacity for Ultra HD broadcasts.

The European market accounted for 2,600 of the TV channels distributed by SES, which represents 40% of SES’s total channel count.  Channel growth in the European market was 9% in 2015.  HDTV channel growth in Europe was 26% year-over-year, reaching a total of 675.

In the North American region, SES ended 2015 with 1,744 channels, which is 24% of the total channel count.  HDTV channels increased by 3% in the region to over 1,200 channels.

International markets outside of European and North America (including the faster growing markets of Latin America, Asia-Pacific, the Middle East and Africa) made up 40% of TV channels over SES satellites.  The channel count in this region grew by 24% to a total of 2,900 channels at the end of 2015.  HDTV channels doubled to over 300 during the year.

The below slide from SES’s investor presentation illustrates the channel and geographic growth of the Video business.

 

SES-Investor-Slide

 

Business Outlook

During the call with analysts, CEO Karim Michel Sabbagh added commentary on the position of SES’s Video Business and the rationale for the RR Media acquisition.  Sabbash stated, “And despite the fact that we have a leading position, unchallenged position, in the video segment across the value chain, our view is that we can grow much further, and this was the rationale for us to think through how do we expand our media services capability and led us to the conclusion that the acquisition of RR Media and the merger of RR Media with SES Platform Services is going to be a highly accretive business.”

 

 

Related Content

SES Press Release on 2015 Financial Results

SES Presentation of 2015 Financial Results

 

 

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