SES SA (SGBAF) Q3 2024 Earnings Call Highlights: Strategic Wins and Operational Excellence

SES SA (SGBAF) reported solid operational and financial performance in Q3 2024, with both Revenue and Adjusted EBITDA tracking to the top end of its financial outlook range. The company's strategic focus on Networks and Media segments has significantly contributed to this success. In this article, we will delve into the key highlights of SES SA's Q3 2024 earnings call, focusing on strategic wins, operational excellence, and the factors driving the company's growth.

**Strategic Wins and New Business**

SES SA secured several significant new business wins and renewals in Q3 2024, which positively impact its financial outlook for the year. The company signed a $200 million NATO government contract for O3b mPOWER, demonstrating its growing presence in the government sector. Additionally, SES Open Orbits secured contracts with Thai Airways and Turkish Airlines, expanding its reach in the aviation industry. The company also renewed multi-year media contracts with key customers, including Sky, Warner Brothers Discovery, Telekom Srbija, RTL, and ORF/ORS. These wins and renewals, totaling €900 million, contribute to SES's full-year 2024 revenue and Adjusted EBITDA outturn.



**Operational Excellence and Segment Performance**

In Q3 2024, SES SA's Networks business grew by +2.9% year-on-year, driven by high single-digit growth in Government, Aviation, and Cruise. The Media segment showed an improving trend in Q3 2024 of -3.1% YOY, in line with expectations. The company's Adjusted Free Cash Flow increased by 5% YOY, with Net Leverage at 1.1x, and cash & cash equivalents at €3.2 billion. These results reflect SES SA's solid execution and the strength of its differentiated customer solutions across target segments.



**Investment in MEO Satellites and Growth Drivers**

SES SA's investment in MEO satellites has significantly contributed to the growth in Government, Aviation, and Cruise segments. The launch of mPOWER satellites 7 and 8 in December 2024, along with the planned launches of satellites 9 to 13 in 2025 and 2026, will add much-needed capacity to the constellation, supporting the rapidly expanding demand for MEO-based vertical solutions. The high single-digit growth in these segments, particularly in Government (+7.2%) and Aviation, reflects the value and demand for SES's differentiated MEO infrastructure.



**Conclusion**

SES SA's Q3 2024 earnings call highlights the company's strategic wins, operational excellence, and the factors driving its growth. With a strong focus on Networks and Media segments, SES SA has secured significant new business wins and renewals, contributing to its full-year 2024 financial outlook. The company's investment in MEO satellites has driven growth in key segments, and its solid execution has resulted in impressive financial performance. As an investor, SES SA's strategic positioning, operational excellence, and growth potential make it an attractive opportunity in the satellite communications industry.