Company to explore the creation of
pure-play market verticals through the potential separation of its data
business within SES
‘Simplify and Amplify’ will drive focus on
company’s core strengths, simplify its operations and facilitate
innovation for future growth
LUXEMBOURG-Monday 2 March 2020 [ AETOS Wire ]
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(BUSINESS WIRE) --
SES is launching a comprehensive programme to position itself for
future growth and deliver maximum value to current and future customers
and stakeholders.
The
programme, called Simplify and Amplify and executed throughout 2020,
comprises a series of strategic actions to enable SES to best deliver
against its declared purpose of doing the extraordinary in space to
deliver amazing experiences everywhere on Earth. It is the next phase in
a process that began in 2017 when SES first established distinct units
for its video and data businesses.
SES
sees enormous opportunities in its core markets given the changing
dynamics of the video and data industries, and this programme is
designed to position SES as the leader in global content connectivity
solutions—operating as an efficient, high-performance partner that is
simpler to do business with, and strengthening its position as the
partner of choice for the world’s leading broadcasters, governments,
telcos, cloud solutions providers, and comms-on-the-move customers.
The programme comprises four major initiatives:
-
Create Pure-Play Verticals: SES
will investigate the creation of two ‘pure-play’ market verticals
through the potential separation of its Networks business within SES in
order to drive strategic and operational focus, provide increased
external visibility and to appropriately configure SES’s overall
business for the future. Consideration will include an analysis of a
separate capital structure for the Networks business, potentially
providing it access to external capital to accelerate growth and build
on the unique value proposition that has been established in the market.
This structure also would facilitate a sharp focus on the cash
generating and value sustaining priorities within SES's market-leading
video business, leveraging its premier direct-to-home (DTH)
neighbourhoods and superior global reach.
As a result of the recent adoption by the U.S. Federal Communications Commission (FCC) of its order regarding the repurposing of part of the C-Band spectrum, SES is putting in to place a dedicated team to execute on the most complex and demanding spectrum repurposing ever contemplated. This team will leverage the company's in-house expertise to ensure a seamless process that meets the critical needs of its current customers as well as the FCC's desire to enable 5G leadership for the United States on an accelerated timeline. This is a transformational opportunity to protect SES’s neighbourhoods and current customers, support the nearly 120 million U.S. households that rely on the C-Band for their cable and broadcast programming, and create shareholder value for SES.
-
Focus on Core Strengths: The
markets in which SES operates have become both more resource intensive
and the subject of technological disruption. SES will focus its
capabilities and offerings across each of its markets on profitable
segments that play to the group's core strengths, doubling down where it
makes sense to do so, while exiting, reducing exposure to, or
establishing alliances and partnerships to serve, other market segments.
This will result in a stronger, more focused SES with world-leading
products and solutions in the areas where it excels.
-
Simplify Operations: SES
expects to realign its resources to support the above initiatives, to
simplify operations, to maximise efficiency, and to make SES easier to
do business with. Activities will include the consolidation and
reorganisation of some functions to reflect any changes in business
scope and structure. In addition, the company plans a comprehensive
review of its global footprint. Overall it is expected that SES will
generate EBITDA optimisation ramping to EUR 40-50 million annually from
2021 as a result of this focus on core strengths and simplification of
its business.
-
Innovate for the Future: SES
will deepen its commitment to innovation to drive the customer
solutions demanded in the market today and in the future. SES has led
the industry in the development of low-latency NGSO and now multi-orbit
architectures along with the integration of network functions and
automation. This further commitment to innovation will broaden SES’s
leadership in cloud integration through the development of a "cloud
practice" focused on creating and driving cloud scale across all target
market segments. In addition, the company intends to establish an
innovation hub to co-create and incubate solutions together with
customers and partners, and develop new technologies and business models
through corporate venturing.
“Our
vision is content and connectivity everywhere, and we are positioning
SES to realise this vision and deliver growth and value for our
customers in their fast-changing markets,” said Steve Collar, CEO of
SES. “This next phase of our strategic transformation is designed to
ensure that we prepare SES for an exciting future while delivering on
our commitments to customers and to the market today. In so doing, we
will make SES a simpler organisation to do business with and deliver
substantial value to all of our stakeholders.”
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About SES
SES
has a bold vision to deliver amazing experiences everywhere on earth by
distributing the highest quality video content and providing seamless
connectivity around the world. As the leader in global content
connectivity solutions, SES operates the world’s only multi-orbit
constellation of satellites with the unique combination of global
coverage and high performance, including the commercially-proven,
low-latency Medium Earth Orbit O3b system. By leveraging a vast and
intelligent, cloud-enabled network, SES is able to deliver high-quality
connectivity solutions anywhere on land, at sea or in the air, and is a
trusted partner to the world’s leading telecommunications companies,
mobile network operators, governments, connectivity and cloud service
providers, broadcasters, video platform operators and content owners.
SES’s video network carries over 8,300 channels and has an unparalleled
reach of over 355 million households, delivering managed media services
for both linear and non-linear content. The company is listed on Paris
and Luxembourg stock exchanges (Ticker: SESG). Further information is
available at: www.ses.com.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200301005062/en/Contacts
Suzanne Ong
External Communications
+352 710 725 500
suzanne.ong@ses.com