HomeIndustrySatellite CommunicationSES S.A.: A Global Leader in Multi-Orbit Satellite Connectivity
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SES S.A.: A Global Leader in Multi-Orbit Satellite Connectivity

Quick Facts / Company Snapshot

  • Company Name: SES S.A.
  • Headquarters: Château de Betzdorf, Betzdorf, Luxembourg
  • Legal Form: Société Anonyme (Public Limited Company)
  • Total Revenue (2024): €2,001 million
  • Adjusted EBITDA (2024): €1,028 million
  • Adjusted EBITDA Margin: 51.4%
  • Net Profit/Loss (2024): €27 million
  • Adjusted Net Debt: €1,093 million
  • Contract Backlog: €4.8 billion
  • Global Reach: 99% coverage of the Earth
  • Satellite Fleet: 70+ satellites in Geostationary (GEO) and Medium Earth Orbit (MEO)
  • TV Households Served: 362 million
  • Total TV Channels Distributed: Over 6,300
  • Networks Revenue Contribution: 54%
  • Media Revenue Contribution: 46%
  • Employees (FTE): 2,118
  • Investment Grade Credit Rating: Baa3 / BBB
  • Major Acquisition Agreement (2024): Intelsat (transaction value $3.1 billion)

Company Overview

SES S.A. stands as a premier provider of global content connectivity solutions, operating a robust and intelligent network that spans both satellite and ground infrastructure. The company harnesses the power of space to deliver impactful experiences everywhere on Earth, bridging the digital divide and enabling shared experiences through data connectivity and media broadcasting.

The organization is a trusted partner in space-based communications, boasting a track record that spans over 35 years. It delivers critical infrastructure to a diverse array of clients, including world-leading telecommunications companies, mobile network operators, governments, institutions, internet service providers, cloud-based solutions businesses, broadcasters, video platform operators, and content owners.

SES operates a unique multi-orbit satellite-based infrastructure across Geostationary Earth Orbit (GEO) and Medium Earth Orbit (MEO). This dual-orbit approach covers over 99% of the Earth’s surface, offering an attractive combination of high data rates, low latency, service reliability, and flexibility to meet customer requirements anywhere. Additionally, the company provides access to Low Earth Orbit (LEO) via strategic partnerships.

The company’s bold purpose is to harness the power of space to connect people and communities everywhere, delivering content that educates, entertains, protects, and empowers populations. By driving businesses and economies forward, enriching lives, and fostering innovation, SES aims to redefine what is possible on Earth while accomplishing the extraordinary in space.

SES focuses on segments and customers where it can deliver competitive offerings and sophisticated end-to-end solutions. These solutions are best addressed by MEO or GEO satellites, either on a standalone basis or through seamless multi-orbit integration with terrestrial or other space-based networks. The strategic priorities of the company centre on transformation, customer-centricity, investment in innovation, and operational excellence.

Business Segments

SES organizes its operations into two primary business units: SES Networks and SES Media. These segments leverage the company’s multi-orbit fleet to deliver specialized services to distinct customer bases.

SES Networks

Revenue: €1,085 million Percentage of Total Revenue: 54.2%

The Networks business supports the rapidly expanding global demand for high-performance broadband connectivity solutions. It operates a multi-orbit (MEO-GEO) constellation of satellites that combines global coverage with high-performance, low-latency MEO systems. This segment creates value by extending customer network reach to anywhere on land, at sea, and in the air.

Operational Scope: This segment delivers secure, reliable, and high-performing connectivity to customers across three main verticals: Government, Mobility, and Fixed Data. The business leverages a vast, intelligent, cloud-enabled network to provide managed connectivity and sophisticated data service solutions. SES has been certified with the Metro Ethernet Forum (MEF) 2.0 industry standard, facilitating easier integration of satellite-based networks into the global ecosystem for customers.

Networks Sub-Segments:

Government

Revenue Contribution to Networks: 50% Revenue (Calculated): Approximately €542.5 million

This sub-segment serves as an established partner to government agencies and institutions in the United States, Europe, and globally. SES delivers secure and reliable connectivity to support mission-critical requirements in demanding locations. The customer base consists of approximately 75% U.S. defence and civilian agencies, with the balance generated from global government and institutional clients such as the United Nations, the Luxembourg Government, and the European Space Agency.

Services include Intelligence, Surveillance, and Reconnaissance (ISR), secure connectivity for land-based operations, and communications-on-the-move for mobile missions. The company also enables governments and NGOs to mount coordinated crisis responses for humanitarian assistance and disaster recovery.

Mobility

Revenue Contribution to Networks: 28% Revenue (Calculated): Approximately €303.8 million

The Mobility segment addresses connectivity needs in aviation and maritime sectors.

  • Aviation: Accounts for approximately 50% of Mobility revenue. SES partners with key inflight connectivity providers such as Gogo Commercial Aviation (part of Intelsat), Thales Avionics, Panasonic, and Anuvu to enable fast, reliable connectivity for major airline clients.
  • Maritime: Accounts for approximately 50% of Mobility revenue. SES serves major cruise lines including MSC, Carnival, and Virgin Voyages, as well as commercial maritime customers like Marlink. The onboard connectivity service ensures guaranteed data speeds and low latency anywhere on the globe.

Fixed Data

Revenue Contribution to Networks: 22% Revenue (Calculated): Approximately €238.7 million

This sub-segment enables major telecommunications companies and mobile network operators to expand coverage and connect more people with 4G and 5G services. It also caters to enterprise, energy, and cloud customer segments. Clients include AT&T, Claro, Digicel, Orange, Verizon, and Reliance Jio. Services include trunking, mobile backhaul, and enterprise services, creating dedicated end-to-end connections from remote sites to customer networks or cloud-based applications.

SES Media

Revenue: €914 million Percentage of Total Revenue: 45.7%

The Media business operates valuable television neighbourhoods and has an established track record of delivering high-quality viewing experiences. This segment generates revenue from a combination of broadcast neighbourhoods (primarily direct-to-home), a direct-to-consumer platform in Germany, and a growing sports and events offering.

Operational Scope: SES’s global satellite infrastructure is relied upon by the world’s leading broadcasters, platform operators, and content owners to deliver entertainment, news, and information. The business reaches 362 million TV households, serving more than 1 billion people worldwide.

Media Sub-Segments:

Europe

Revenue Contribution to Media: 57% Revenue (Calculated): Approximately €521 million

This represents the core of the Media business, where SES operates highly valuable TV neighbourhoods. The company delivers high-quality content to TV homes and provides simplified content management, tracking, and delivery solutions to broadcasting clients in key markets such as Germany, the UK, France, and Spain.

International

Revenue Contribution to Media: 21% Revenue (Calculated): Approximately €192 million

The international business has established strong positions and customer relationships in regions ranging from Latin America to Asia-Pacific. Customers in this segment include Canal+, DISH, Ethiosat, and NewSpace India.

HD+

Revenue Contribution to Media: 13% Revenue (Calculated): Approximately €119 million

SES operates HD+, a leading direct-to-consumer TV platform in Germany. This platform serves nearly 2 million paying subscribers, providing access to 26 private HD TV channels, three private UHD TV channels, and 50 free High-Definition TV channels via a paid subscription.

North America

Revenue Contribution to Media: 6% Revenue (Calculated): Approximately €55 million

This segment generates revenue from North American neighbourhoods that deliver direct-to-cable distribution services. Key customers include Comcast, Discovery, and Time Warner.

Sports & Events

Revenue Contribution to Media: 4% Revenue (Calculated): Approximately €36.5 million

This expanding segment works with the world’s largest sports organizations and events companies to distribute premium live sports and events daily. Customers include the National Football League, English Premier League, All Elite Wrestling, and Agence France-Presse. SES serves over 500 customers in this space, distributing over 700 hours of live content every single day.

History and Evolution

SES was incorporated on March 16, 2001, under the name SES GLOBAL, in Luxembourg. On November 9, 2001, SES became the parent company of SES ASTRA, which was originally created in 1985. The company has a long history of innovation in the satellite industry.

A significant evolution in the company’s history involves the strategic shift towards multi-orbit operations. SES acquired O3b Networks, integrating Medium Earth Orbit (MEO) capabilities into its portfolio. This acquisition laid the foundation for the current O3b mPOWER system, a second-generation MEO constellation.

In 2024, the company reached a landmark milestone with the start of commercial services for O3b mPOWER in April. This launch strengthened SES’s capability to deliver competitive and differentiated customer solutions in valuable and growing network segments.

Another pivotal moment in the company’s evolution occurred on April 30, 2024, when SES announced an agreement to acquire Intelsat Holdings S.à r.l. for a cash consideration of $3.1 billion. This acquisition is designed to create a stronger multi-orbit operator by combining two trusted operators with strong business and financial fundamentals. The transaction is expected to close during the second half of 2025.

Furthermore, in December 2024, the SES-led consortium SpaceRISE signed a concession contract with the European Commission to design, deliver, and operate IRIS², the European Union’s pioneering multi-orbit connectivity system. This 12-year contract marks a crucial step in SES’s involvement in establishing secure and resilient communications infrastructure for Europe.

Products and Services

SES offers a wide array of products and services designed to meet the connectivity and broadcasting needs of its global customer base.

Satellite Capacity and Connectivity

Operational Scope: SES provides satellite capacity services using its multi-orbit fleet of over 70 satellites.

  • GEO Capacity: Delivered via over 40 geostationary satellites operating in C-, Ku-, Ka-, and X-band frequencies. These satellites provide wide beam coverage for large geographic areas and high throughput spot beams for defined areas.
  • MEO Capacity: Delivered via the O3b constellation of 20 satellites and the new O3b mPOWER constellation. These satellites operate in the Ka-band and provide high throughput, low latency connectivity suitable for latency-sensitive applications.
  • Services: Includes trunking, mobile backhaul, enterprise connectivity, and maritime and aviation connectivity.

Managed Network Services

Operational Scope: Beyond raw capacity, SES provides end-to-end network solutions.

  • Integration: Integration of satellite services with terrestrial infrastructure, data centres, and cloud platforms.
  • Cloud Connectivity: Partnerships with cloud providers like Microsoft Azure and Amazon Web Services to offer integrated cloud solutions.
  • Service Features: Guaranteed service delivery, end-to-end network management, and customer experience monitoring.

Broadcast Services

Operational Scope: SES delivers comprehensive broadcasting solutions.

  • Linear Video Distribution: Aggregation and distribution capabilities to Direct-to-Home (DTH), Direct-to-Cable (DTC), and IPTV homes.
  • Channel Management: Solutions including playout, which combine products into predefined end-to-end solutions for different use cases.
  • Occasional Use Services: Providing extra capacity, content processing for live feeds, and redundancy features for sports and events.

HD+ Platform

Operational Scope: A direct-to-consumer offering in Germany.

  • Service: Access to private HD and UHD channels and free HD channels.
  • Features: Available at home and on the go via a paid subscription model.

Sovereign Connectivity (IRIS²)

Operational Scope: As part of the SpaceRISE consortium, SES will develop and operate the IRIS² system.

  • Infrastructure: 18 new MEO satellites providing pole-to-pole global coverage.
  • Service: Secure, resilient, and autonomous communications infrastructure for the European Union, member states, and commercial users.

Brand Portfolio

SES manages a focused portfolio of brands that serve distinct market needs.

SES

Profile: The corporate master brand representing the global content connectivity solutions provider. It encompasses the Networks and Media business units and the operation of the global multi-orbit fleet.

O3b / O3b mPOWER

Profile: These brands represent the company’s Medium Earth Orbit (MEO) capabilities. O3b refers to the first-generation constellation, while O3b mPOWER represents the second-generation, high-throughput, low-latency system designed to scale capacity globally.

ASTRA

Profile: ASTRA represents the satellite system primarily serving the European broadcast market. It is synonymous with Direct-to-Home (DTH) television reception in Europe, operating major TV neighbourhoods such as 19.2° East.

HD+

Profile: A consumer-facing brand in Germany offering a premium high-definition television package. It operates as a direct-to-consumer platform allowing viewers to access private commercial broadcasters in HD quality.

SES Space & Defense

Profile: A wholly-owned subsidiary focused on providing satellite communications solutions to the U.S. Government and military. It operates under a proxy agreement to manage classified contracts.

Geographical Presence

SES maintains a truly global footprint, both in terms of its satellite coverage and its physical operations. The company generates revenue from customers worldwide.

Revenue by Region

  • United States of America: €713 million (35.6% of Total Revenue)
  • Others (Rest of World): €406 million (20.3% of Total Revenue)
  • Germany: €321 million (16.0% of Total Revenue)
  • Others – Europe: €205 million (10.2% of Total Revenue)
  • United Kingdom: €203 million (10.1% of Total Revenue)
  • Luxembourg (Domicile): €79 million (3.9% of Total Revenue)
  • France: €74 million (3.7% of Total Revenue)

Operational Footprint

SES operates a global network of teleports and offices.

  • Headquarters: Betzdorf, Luxembourg.
  • Key Locations: The company has offices and facilities in locations including The Hague, London, Munich, Paris, Princeton, Rio de Janeiro, Singapore, Stockholm, Washington D.C., Dubai, and Johannesburg.
  • Ground Network: SES owns or partners with approximately 30 teleports worldwide and operates a comprehensive fibre-based terrestrial network. Major points of presence (POPs) connect the satellite fleet to the internet and private networks globally.
SES Global Leader in Multi Orbit Satellite Connectivity
SES Global Leader in Multi Orbit Satellite Connectivity

Financial Performance Analysis

In 2024, SES delivered a financial performance that met or exceeded its objectives, characterised by a stable revenue trajectory and disciplined cost management.

Consolidated Performance Trends:

  • Revenue Stability: Group revenue was reported at €2,001 million, which represented a 0.9% decrease year-on-year at constant foreign exchange (FX) rates. This outcome was at the top end of the company’s outlook.
  • EBITDA Growth: Adjusted EBITDA stood at €1,028 million, reflecting a 0.9% year-on-year increase at constant FX. The Adjusted EBITDA margin improved to 51.4% from 50.5% in the prior year.
  • Profitability: Adjusted Net Profit was recorded at €126 million, a decrease from €215 million in 2023. This reduction was primarily driven by higher depreciation and amortisation expenses associated with new satellite assets entering service.
  • Debt Reduction: Adjusted Net Debt was significantly reduced to €1,093 million from €1,565 million in 2023. The Adjusted Net Debt to Adjusted EBITDA ratio improved to 1.1 times, down from 1.5 times in the previous year, demonstrating strong balance sheet deleveraging.

Profit and Loss Analysis

Revenue: Total reported revenue for the year ended 31 December 2024 was €2,001 million.

  • Networks Revenue: €1,085 million (up 2.9% year-on-year at constant FX).
  • Media Revenue: €914 million (down 5.3% year-on-year at constant FX).
  • Other Revenue: €1 million.

Operating Profit:

  • Reported EBITDA: €993 million.
  • Adjusted EBITDA: €1,028 million.
  • Operating Profit (EBIT): €64 million. This figure includes the impact of depreciation, amortisation, and impairment expenses.

Expenses:

  • Operating Expenses: Total operating expenses were €1,099 million. Recurring operating expenses (excluding cost of sales and special items) were €973 million, representing a reduction of €28 million or 2.8% year-on-year.
  • Cost of Sales: €461 million.
  • Staff Costs: €402 million.
  • Depreciation and Amortisation: €806 million. This increased year-on-year due to the entry into service of new satellites.
  • Impairment Expenses: The company recorded a net impairment reversal of €93 million on intangible assets and an impairment charge of €216 million on property, plant, and equipment.

Net Profit:

  • Profit/Loss After Tax: A profit of €27 million was reported for the year, a significant turnaround from the loss of €904 million reported in 2023 (which was impacted by large impairment charges).
  • Profit Attributable to Owners: €15 million.

Ratios:

  • Adjusted EBITDA Margin: 51.4%.
  • Basic Earnings Per Share (Class A): €0.00.
  • Adjusted Earnings Per Share (Class A): €0.26.

Balance Sheet Analysis

Assets:

  • Total Assets: €10,327 million.
  • Non-Current Assets: €6,025 million. This includes €2,924 million in Property, Plant and Equipment (satellites and ground segment) and €1,348 million in assets in the course of construction.
  • Current Assets: €4,302 million. This includes a robust cash position of €3,521 million.

Liabilities:

  • Total Liabilities: €6,835 million.
  • Non-Current Liabilities: €5,313 million. This includes €4,247 million in long-term borrowings.
  • Current Liabilities: €1,522 million. This includes €273 million in current borrowings.

Equity:

  • Total Equity: €3,492 million.
  • Attributable to Owners: €3,423 million.
  • Non-Controlling Interests: €69 million.

Debt Position:

  • Gross Debt (Borrowings): €4,520 million.
  • Cash and Cash Equivalents: €3,521 million.
  • Net Debt (Reported): €999 million.
  • Adjusted Net Debt: €1,093 million (includes 50% of hybrid bonds as debt).

Liquidity: SES maintains a strong liquidity position with €3,521 million in cash and cash equivalents. The company also has access to a €1,200 million syndicated revolving credit facility which remained undrawn as of December 31, 2024.

Cash Flow Analysis

Operating Cash Flow:

  • Net Cash Generated by Operating Activities: €1,006 million. This compares to €3,479 million in 2023, with the difference largely attributable to the receipt of significant C-band repurposing payments in the prior year.
  • Adjusted Free Cash Flow: €253 million. This represents a net inflow, compared to a net outflow of €431 million in 2023 (when excluding C-band proceeds).

Investing Cash Flow:

  • Net Cash Absorbed by Investing Activities: €159 million.
  • Capital Expenditure (Cash): Payments for purchases of tangible assets amounted to €280 million. Payments for intangible assets were €23 million.
  • Interest Received: €158 million.

Financing Cash Flow:

  • Net Cash Absorbed by Financing Activities: €375 million.
  • Proceeds from Borrowings: €1,034 million.
  • Repayment of Borrowings: €717 million.
  • Dividends Paid: €320 million.
  • Share Buybacks: €128 million used for the purchase of treasury shares.
  • Interest Paid: €110 million.

Board of Directors and Leadership Team

Board of Directors

The Board of Directors defines the company’s strategic objectives and oversees their execution. As of December 31, 2024, the Board consisted of 10 non-executive directors.

  • Frank Esser (Chairman): Former Chairman and CEO of SFR and Board Member of Vivendi Group. He holds a PhD in Managerial Economics.
  • Peter van Bommel (Vice-Chair): Chair of the Audit and Risk Committee. Former CFO of ASM International with extensive experience in the electronics and semiconductor industry.
  • Anne-Catherine Ries (Vice-Chair): Chair of the Nomination and Governance Committee. First Government Advisor to the Prime Minister of Luxembourg, specializing in media, telecom, and digital policy.
  • Fabienne Bozet: Director. Member of the Board of Herstal Group and former CEO of Circuit Foil.
  • Carlo Fassbinder: Director. Director of Tax at the Luxembourg Ministry of Finance.
  • Ramu Potarazu: Director. CEO of Lynk and former CEO of EditShare. He has 15 years of experience at Intelsat.
  • Kaj-Erik Relander: Director. A private investor and board director with experience at Sonera Corporation and Accel Partners.
  • Jacques Thill: Director. First Government Advisor to the Prime Minister of Luxembourg and Coordinator at the Prime Minister’s Office.
  • Françoise Thoma: Chair of the Remuneration Committee. President and CEO of Banque et Caisse d’Epargne de l’Etat.
  • Katrin Wehr-Seiter: Director. CEO and Partner of BIP Capital Partners with prior experience at Permira and Siemens.

Executive Committee (Senior Leadership Team)

  • Adel Al-Saleh: Chief Executive Officer (CEO). Appointed in February 2024. Former CEO of T-Systems and Board Member of Deutsche Telekom.
  • Sandeep Jalan: Chief Financial Officer (CFO). Appointed in May 2020. Former CFO of Aperam.
  • John-Paul (JP) Hemingway: Chief Commercial Officer (CCO). Former Chief Strategy Officer and CEO of SES Networks.
  • Thai Rubin: Chief Legal Officer (CLO). Oversees legal affairs and ESG programs. Joined via O3b Networks.
  • Dr. Xavier Bertrán: Chief Product & Innovation Officer. Appointed in April 2024. Former Senior VP at SES and executive at Airbus.
  • Veronika Ivanovic: Chief People Officer. Appointed in September 2024. Formerly with Ericsson.
  • Fabien Loeffler: Chief Transformation Officer. Appointed in September 2024. Oversees the company-wide transformation agenda.
  • Milton Torres: Chief Technology Officer (CTO). Responsible for technology, IT, and cybersecurity operations.
  • Greg Orton: Chief M&A and Development Officer. Oversees inorganic development and growth.
  • Nihar Shah: Chief Strategy Officer (CSO). Responsible for strategic planning and market intelligence.

Subsidiaries, Associates, Joint Ventures

SES comprises numerous subsidiaries that support its global operations.

Major Consolidated Subsidiaries (Selected List):

  • SES Astra S.A. (Luxembourg): 100% ownership. Operates the ASTRA satellite system.
  • SES Americom Inc. (USA): 100% ownership. Operates satellites serving the Americas.
  • New Skies Satellites B.V. (Netherlands): 100% ownership.
  • SES Networks Lux S.à r.l. (Luxembourg): 100% ownership.
  • SES mPOWER S.à r.l. (Luxembourg): 100% ownership. Entity for the mPOWER constellation.
  • HD Plus GmbH (Germany): 100% ownership. Operates the HD+ platform.
  • SES Space and Defense, Inc. (USA): 100% ownership. Serves U.S. government clients.
  • LuxGovSat S.A. (Luxembourg): 50% ownership. A joint venture with the Luxembourg government, fully consolidated.
  • Al Maisan Satellite Communications LLC (UAE): 35% economic interest, fully consolidated due to control over relevant activities.

Associates:

  • Redu Space Services S.A. (Belgium): 100% ownership (Acquired remaining shares in 2024).
  • Jio Space Technology Limited (India): 49% equity interest. Joint venture with Reliance Jio.

Physical Properties

SES maintains a substantial physical infrastructure to support its space assets.

Satellite Fleet

The company operates a fleet of over 70 satellites.

  • Geostationary Orbit (GEO): Over 40 satellites stationed at specific orbital slots above the equator (approx. 36,000 km altitude). Key positions include 19.2°E, 28.2°E, 5°E, and others serving various global regions.
  • Medium Earth Orbit (MEO): 20 first-generation O3b satellites and 6 operational second-generation O3b mPOWER satellites orbiting at approximately 8,000 km.

Ground Infrastructure

  • Teleports: SES owns or partners with approximately 30 teleports.
  • Operations Centres: Satellite Operations Centres (SOCs) and Network Operation Centres (NOCs) monitor and control the fleet and network traffic.
  • Gateways: A network of gateways supports the O3b and mPOWER constellations.
  • Fibre Network: An extensive fibre-based terrestrial network connects teleports and Points of Presence (POPs).

Offices

Major office locations include:

  • Betzdorf, Luxembourg (Headquarters)
  • The Hague, Netherlands
  • London, UK
  • Munich, Germany
  • Paris, France
  • Princeton, USA
  • Washington D.C., USA
  • Singapore
  • Rio de Janeiro, Brazil
  • Dubai, UAE

Segment-wise Performance

Networks Segment

Performance:

  • Revenue: €1,085 million.
  • Growth: +2.9% year-on-year at constant FX.
  • Government: +6.4% growth, driven by U.S. and global expansion.
  • Mobility: +7.1% growth, with double-digit growth in Aviation.
  • Fixed Data: -8.7% decrease due to periodic revenue in the prior year.
  • Highlights: Secured €1.4 billion in gross renewals and new business.

Media Segment

Performance:

  • Revenue: €914 million.
  • Growth: -5.3% year-on-year at constant FX.
  • Europe: Stable performance in the DACH region (Germany, Austria, Switzerland).
  • Sports & Events: Delivered double-digit revenue growth.
  • Highlights: Secured €650 million in renewals and new business. The segment continues to provide strong cash flow visibility despite mature market headwinds.

Founders

SES was incorporated in 2001, but its roots trace back to SES ASTRA, created in 1985. The company was founded on the initiative of the Luxembourg Government to create a satellite system for broadcasting television across Europe. This visionary move established Luxembourg as a key player in the global space industry.

Shareholding Pattern

SES has a dual share structure consisting of Class A and Class B shares.

  • Total Shares: 557,186,400 (371,457,600 Class A + 185,728,800 Class B).
  • Economic Rights: One Class B share carries 40% of the economic rights of one Class A share.
  • Voting Rights: Each share is entitled to one vote.

Key Shareholders (Voting Participation):

  • Luxembourg State: 11.55% (Directly holds Class B shares).
  • Banque et Caisse d’Epargne de l’Etat (BCEE): 10.89% (Holds Class B shares).
  • Société Nationale de Crédit et d’Investissement (SNCI): 10.89% (Holds Class B shares).
  • Free Float (FDRs): 66.03% (Listed as Fiduciary Depositary Receipts backed by Class A shares).

Restrictions: No Class A shareholder may hold more than 20%, 33%, or 50% of the company’s shares without prior approval from the meeting of shareholders.

Parent

SES S.A. is the ultimate parent company of the group. It does not have a separate corporate parent but is significantly influenced by the Luxembourg State through its Class B shareholding.

Investments and Capital Expenditure Plans

SES maintains a disciplined financial policy regarding investments, targeting an internal rate of return (IRR) hurdle of 10% or higher.

Capital Expenditure (Capex):

  • 2025 Outlook: Expected Capex is in the range of €425-475 million.
  • 2026-2029 Outlook: Average annual Capex is expected to be approximately €325 million.
  • IRIS² Investment: Capital expenditure related to IRIS² is expected to be up to €1.8 billion, ramping mostly from 2027 with an average annual spend of around €400 million over 2027-2030.

Strategic Investments:

  • O3b mPOWER: Continued investment in the completion of the 13-satellite constellation. Satellites 9-11 are set for launch in 2025, and satellites 12-13 in 2026.
  • EAGLE-1: Developing a satellite-based system for secure Quantum Key Distribution, launching in 2026.
  • ASTRA 1Q: A next-generation digital satellite for the 19.2° East orbital position, launching in 2027.
  • SES-26: A software-defined GEO satellite to replace NSS-12 at 57° East, launching in 2027.

Future Strategy

SES’s strategy is anchored in creating a multi-orbit, customer-centric, and digitally optimized business.

Key Strategic Pillars:

  1. Transformation: Streamlining the operating model to maximize productivity and efficiency.
  2. Customer-Centricity: Designing solutions that meet specific segment needs (Government, Mobility, Fixed Data, Media).
  3. Innovation: Advancing technology across space and ground segments, including software-defined satellites and cloud integration.
  4. Operational Excellence: Driving efficiencies to maximize cash flow and value.

Expansion Initiatives:

  • Intelsat Acquisition: A definitive agreement to acquire Intelsat for $3.1 billion. This aims to create a stronger multi-orbit operator with expanded coverage, greater resiliency, and a combined fleet of over 100 GEO and 33 MEO satellites.
  • Synergies: The acquisition is expected to unlock €2.4 billion (NPV) of synergies, with 70% executed within three years post-closing.
  • IRIS²: Designing and operating the EU’s sovereign connectivity network, solidifying SES as a key partner for government communications.

Key Strengths

  • Multi-Orbit Capabilities: The only operator with a scaled, operational fleet in both GEO and MEO, offering a unique combination of coverage and performance.
  • Contract Backlog: A robust backlog of €4.8 billion provides high cash flow visibility.
  • Financial Health: Strong balance sheet with investment-grade metrics (Net Debt/EBITDA of 1.1x) and a liquidity pool of over €3.5 billion.
  • Customer Reach: Extensive reach in the Media sector (362 million households) and entrenched relationships with top-tier telcos and government agencies.
  • Innovation Leader: First to deploy a second-generation MEO constellation (O3b mPOWER) and secure the IRIS² concession.

Key Challenges and Risks

  • Launch Delays: Risks associated with the availability of launch vehicles and potential delays in satellite deployment (e.g., launch schedule dependencies).
  • In-Orbit Failures: The inherent risk of technical anomalies or total loss of satellites in orbit, which can impact service delivery and revenue.
  • Competition: Intense competition from other satellite operators (GEO and NGSO) and terrestrial network providers.
  • Cybersecurity: Risks of cyber-attacks on satellite control systems or corporate networks.
  • Regulatory Environment: Compliance with diverse regulations in over 75 countries, spectrum rights management, and potential geopolitical risks.
  • Market Dynamics: Changing consumer viewing habits in the Media segment leading to lower demand for satellite capacity in mature markets.

Conclusion and Strategic Outlook

SES S.A. is positioned at the forefront of the global connectivity landscape. By successfully operationalizing its O3b mPOWER constellation and securing the landmark IRIS² contract, the company has reinforced its leadership in multi-orbit solutions. The pending acquisition of Intelsat represents a transformative step that will significantly scale its capabilities and market presence.

Financially, SES has demonstrated resilience and discipline, achieving its 2024 targets and significantly deleveraging its balance sheet. With a clear strategy focused on high-growth network segments and a stable, cash-generative media business, SES is well-equipped to navigate the evolving industry dynamics and deliver sustained value to its stakeholders.

Official Site: https://www.ses.com/

FAQ Section

1. What is SES S.A.’s total revenue for 2024? SES S.A. reported a total revenue of €2,001 million for the financial year 2024.

2. What are the main business segments of SES? SES operates two primary business segments: SES Networks, which contributes 54% of revenue, and SES Media, which contributes 46% of revenue.

3. How many satellites does SES operate? SES operates a multi-orbit fleet comprising over 70 satellites across Geostationary Earth Orbit (GEO) and Medium Earth Orbit (MEO).

4. What is the status of the Intelsat acquisition? SES announced the agreement to acquire Intelsat for $3.1 billion in April 2024. The transaction is subject to regulatory clearances and is expected to close in the second half of 2025.

5. What is the O3b mPOWER system? O3b mPOWER is SES’s second-generation Medium Earth Orbit (MEO) satellite constellation, providing high-throughput, low-latency connectivity globally. Commercial services began in April 2024.

6. Does SES pay dividends? Yes, the Board has proposed a dividend of €0.50 per Class A share and €0.20 per Class B share for the year 2024, subject to shareholder approval.

7. What is SES’s contract backlog? As of December 31, 2024, SES reported a fully protected contract backlog of €4.8 billion.

8. Where is SES headquartered? SES is headquartered at Château de Betzdorf in Betzdorf, Luxembourg.

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.

By Raveendran
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