seek4sat – Satellite Internet & Broadcast

Increase of 15% in 2001announcedSES GLOBAL, announces consolidated results for the year to 31 December 2001. The results include the first time consolidation of SES AMERICOM, North America’s premier satellite operator, with effect from 9 November 2001.

HIGHLIGHTS Revenues up 17.0% at EUR 978.2 million EBITDA increased by 12.1% to EUR 794.6 million, representing an EBITDA margin of 81.2% Profit of the Group 14.6% higher at EUR 280.3 million Dividend of EUR 0.24 per share proposed Successful completion of the USD 4.3 billion acquisition of GE Americom New loan facilities completed Investment grade credit ratings assigned Successful operational introduction of ASTRA 2D and ASTRA 2C Commercial launch of the ASTRA Broadband Interactive Service (BBI) Commenting on the results, Romain Bausch, President & CEO of SES GLOBAL, said: “During the year, the SES GLOBAL Group continued to strengthen its financial performance. The highlight of the year was the successful completion of the GE Americom transaction and this has further strengthened the Group’s global presence and diversity of services . The increase in the scale and breadth of our operations has propelled us to the head of our industry, and we will continue to strive to deliver the highest quality services and business solutions to our customers.

The integration of SES AMERICOM into the Group is proceeding well, with a strong focus on synergy achievement and the development of best practice across the Group. In addition to the capital expenditure reductions achieved from the cancellation of redundant spacecraft procurement programmes, the first ‘global’ customers have contracted transmission capacity, endorsing our global service offering.

We expect to continue to grow our business in 2002, even though the overall economic outlook has become less positive over the last six months, and we anticipate a more favourable economic environment and an increasing contribution from broadband activities from 2003 onwards.

None of this would have been possible without the dedication and hard work of our colleagues across the Group, which has made so much happen, and our thanks are due to all of them. ”

ACTIVITIES SUMMARY 2001 was another important year of progress in the Group’s strategic development. As well as recording increased revenues from its existing operations, the Group concluded the acquisition of GE Americom, a wholly owned subsidiary of GE Capital Corporation, for USD 4.3 billion in cash and shares on 9 November 2001, thus creating the world’s leading global satellite operator. Synergies from the acquisition have already been recognised through the cancellation of procurement contracts for redundant spacecraft, and the cross-fertilisation of the high-excellence cultures of ASTRA and AMERICOM proceeds apace.

During the period SES GLOBAL continued to develop its strategy of geographic and service diversification. Geographic reach was extended by virtue of the AMERICOM transaction, which also brought Data Services. Total broadband services contributed 7% of Group revenues in 2001.

SES ASTRA successfully brought into operation two additional satellites in the period – ASTRA 2D, which is in service at the orbital position of 28.2°E, and ASTRA 2C, which is currently in service at 19.2°E pending the launch and entry into operational service of ASTRA 1K, following which it is planned to be redeployed within the ASTRA fleet.

SES AMERICOM continued to grow its customer and revenue base during the year. The results include the impact of 53 days’ contribution in 2001. Six new spacecraft are scheduled for launch in the next three years, including replacements for aging craft and satellites for new orbital positions.

AsiaSat made a positive contribution to the results despite a challenging market in the Asia/Pacific region. AsiaSat 4, the operator’s latest satellite, will be launched in the first half of this year.

NSAB continued to make progress in the transition from analogue to digital services in the Nordic region although, as expected, revenues declined against the year before.

Attention to costs helped the Group EBITDA margin to reach 81.2%, comfortably in line with the 80%-plus target level.

Following additional contract wins and renewals in the second half of the year, the combined contract backlog of SES ASTRA and SES AMERICOM at the year end was EUR 6.7 billion.