SES Global Reports Lower Revenues, Increased Profits for H1 2004

BETZDORF, Luxembourg, Sept. 21/Satnews Daily/ — SES Global (Euronext Paris, Luxembourg and Frankfurt Stock Exchanges: SESG) said it posted revenues of $722.15 million (EUR 593 million) for the first six months of 2004, lower than the $781.77 million) EUR 642 million it earned during the same period last year. However, it said the Group’s profit rose 41% from $140 million (EUR 115 million) to $197.26 (EUR 162 million), largely due to the release of tax provisions.

Announcing the consolidated results for the six months to 30 June 2004, SES Global reported EBITDA of $535.79 million (EUR 440 million) [2003: $627.13 (EUR 515 million)] blaming the weaker US dollar and higher marketing costs for the decline. Whereas the gross EBITDA margin declined to 74%, the margin in the Group's primary infrastructure provision segment remains close to 80%, the company said.

Romain Bausch, president & CEO said the first six months of the year were very much as the company had expected. He said the record launch program of five satellites this year will lead to high capital expenditures in 2004, but added these expenditures will be fully financed by operating cash flow.

SES Global said it sees a further decline of the Group's EBITDA margin in the second half of 2004 bringing the full year margin percentage towards the low 70's, but said this is consistent with the guidance given earlier in the year.

The company said nearly two-thirds of the decline in the revenue is a result of the impact of the weaker US dollar on SES Americom and AsiaSat. On a constant exchange rate basis, SES Global revenues decreased by $23 million (EUR 18.9 million), or 3.1%, compared to the first half of 2003.

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