SES OBTIENE UNOS INGRESOS Y GANANCIAS RÉCORD EN 1998

DATOS A DESTACAR

• La facturación se incrementó en un 15%, hasta alcanzar los 517 millones de euros (86.021 millones de pesetas).
• Los ingresos netos alcanzaron los 176 millones de euros (29.284 millones de pesetas), lo que significa un aumento del 11% respecto al ejercicio anterior y un incremento del 14% en los beneficios de explotación.
• Los beneficios por acción de tipo A pasaron de 4,26 euros (708,8 pesetas) a 4,73 euros (787 pesetas).
• En la Junta de Accionistas que se celebrará el próximo 15 de abril, la propuesta de dividendos por parte de la Junta Directiva será de 2,26 euros (376 pesetas) por acción de tipo A.
• La penetración de ASTRA en Europa ha alcanzado los 74,54 millones de hogares, lo que representa un incremento del 5,7%.

RESULTADOS FINANCIEROS	Balance año 1998
	1998 MEUR	1998 MLUF	1997 MLUF
Facturación Total	516.9	20,851	18,075
Beneficios antes de impuestos	416.4	16,797	14,488
Beneficio Neto	279.3	11,268	9,859
Ingresos Netos	176.2	7,106	6,406
Cash flow	123.4	4,976	11,013
Capital emitido	264.8	10,682	12,258
Endeudamiento Neto	503.1	20,296	19,231
Beneficios por acción (Tipo A) (en euros/pts.)	4.73	190.8	172.0

1Euro = 166,386 pesetas

La facturación de 1998 refleja un crecimiento significativo debido a la puesta en marcha de los servicios comerciales del séptimo y octavo satélite de ASTRA.

El incremento de los gastos de explotación fue menor que el de los ingresos, obteniendo unos márgenes de rentabilidad del 80,6% contra el 80,2% del año anterior.

Los resultados del año incluyen una carga extraordinaria de 8,18 millones de euros (1.359 millones de pesetas) correspondiente a la OPI de SES (oferta pública inicial) en la Bolsa de Luxemburgo.

Como consecuencia de la inversión continuada en la flota de satélites ASTRA, los gastos de depreciación y amortización aumentaron un 19,4%, hasta alcanzar los 137 millones de euros (22.780 millones de pesetas) Los resultados muestran la sólida situación financiera de SES ya que el endeudamiento neto al finalizar el año se situaba en 503,1 millones de euros (83.708 millones de pesetas), lo que representa una relación de deuda a patrimonio de sólo el 69,9% mientras que en 1997 ésta alcanzó el 71,3%.

Según Romain Bausch, "1998 ha sido, en términos generales, un año importante para SES, destacando la operación de salida en Bolsa (julio de 1998) y la obtención y apertura de la segunda posición orbital de SES a 28,2º Este. Estos resultados son consecuencia de los 3 objetivos establecidos con motivo de la OPI: la consolidación de la actividad principal de SES en Europa, la expansión geográfica de la compañía y la diversificación de sus productos y servicios".

El éxito del lanzamiento de los servicios digitales en el Reino Unido y Polonia, la adquisición del 34,13% de AsiaSat (el principal operador de satélites de Asia) y el lanzamiento de los servicios multimedia de SES fueron, según Bausch, determinantes para convertir a SES en operador mundial de una infraestructura de comunicaciones de banda ancha.

SES ha reafirmado su liderazgo en Europa como operador de satélites, con 26,5 millones de hogares con antenas parabólicas orientadas directamente al Sistema de Satélites ASTRA, a los que hay que sumar 48 millones de hogares que reciben ASTRA a través de cable. Estas cifras de penetración representan un incremento del 5,7% respecto a 1997.

Romain Bausch añadió que "1999 será también un excelente año para la compañía ya que está previsto lanzar dos nuevos satélites, potenciar todavía más el desarrollo de actividades multimedia con la incorporación de un canal de retorno interactivo por satélite (ARCS) y consolidar la operación con AsiaSat. Nuestro objetivo es mantener el ritmo de crecimiento tanto de la actividad principal de SES como de otras relacionadas con la diversificación del ámbito de negocio de la compañía. Según Bausch, se aprovecharán también aquellas oportunidades que permitan potenciar el reto de convertir a SES en un centro único de emisión y comunicación a nivel mundial".

Para más información, contactar con:

Nota para el editor:

SES cotiza en la Bolsa de Luxemburgo bajo la forma de FDR (Certificados fiduciarios de depósitos) y en la SEAQ International del Londres y en la XETRA.

Para obtener información financiera más detallada, se facilitará un informe complementario a todos aquellos medios que lo soliciten al Telf. 93-209.58.00 (Teresa Lloret & Comunicación).

• Financial Commentary
• The Business Environment
• Summary Consolidated Accounts

Financial Commentary:

Group Revenues for the financial year ended 31 December 1998 increased 15.4% to LUF 20,851 million. This increase is due primarily to the start of services on Astra 1G in January, which expanded the provision of digital audio-visual services in France, Germany and Spain. In addition, ASTRA 2A entered into commercial service in October to provide digital audio-visual services to the UK and Ireland.

The launch of ASTRA 2A services contributed to a strong performance in the second half year, with revenues rising 17.7% (to LUF 10,760 million) compared to the second half of 1997. Group revenues also reflect the initial launch of multimedia services through European Satellite Multimedia Services S.A.

Earnings before interest, tax, depreciation and amortization (EBITDA) grew 16.0% to LUF 16,797 million. The 1998 EBITDA ratio grew to 80.6% compared to 80.2% in 1997, as operating expenses increased at a slower rate than revenues. Total operating expenses (which include external charges, staff costs and other operating costs) increased 13%, primarily due to the start up operating expenses relating to new multimedia activities and the opening up of SES' second orbital position at 28.2° East.

Depreciation and amortization increased by LUF 900 million or 19.4% to LUF 5,529 million reflecting the continued investment in the ASTRA satellite fleet. Specifically, the increase is explained by a full year's charge in respect of ASTRA 1G and 3 months depreciation for ASTRA 2A plus their associated ground equipment.

Net financing charges rose by LUF 177 million or 20.8% to LUF 1,027 million due to higher net debt reflecting the investment in new satellites mentioned above.

The above factors led to an increase in the profit on ordinary activities (i.e. profit before extraordinary items, taxes and franchise fees) of 13.7% to LUF 10,241 million.

The extraordinary expense of LUF 330 million relates to the costs incurred by the company resulting from the Initial Public Offering completed in July on the Luxembourg Stock Exchange.

Franchise fees and taxes increased to LUF 2,921 million due to the growth increase in profits. As a result of the Company's continued investments in satellite capacity and the resulting investment tax credits, the effective taxes and franchise fee rate was 29.4 % for the year.

Profit of the group reached LUF 7,106 million, an 11% rise or LUF 700 million over the previous year with a corresponding increase in earnings per A share to LUF 190.8 (LUF 172.0 in 1997).

Capital expenditures during the year amounted to LUF 4,976 million, which represents a decline versus 1997 of 54.8%. This arises from the timing of satellite and launch vehicle payments, which reflect the progress payments on satellite contracts. During the year the company completed payments in respect of the ASTRA 2A satellite and its launch and insurance, and commenced investment in the ASTRA Business Centre.

Operating Cash Flow at LUF 10,682 million was LUF 1,576 million lower than the previous year. This decline is primarily due to the change in trade creditors arising from capital expenditures. In 1997 trade creditors increased by LUF 1,445 million while in 1998 there was a reduction of LUF 1.064 million. However the underlying trend in operating cash flow remains at a very satisfactory level.

Net debt (total loans less cash) increased 5.5% at year-end 1998 to LUF 20,296 million versus LUF 19,231 million at the end of the previous year. This increase does not reflect the average debt situation during the year as substantial amounts were repaid from cash flow in the second half of the year. This situation is achieved despite the payment of a special dividend of LUF 1,862 million just prior to the Initial Public Offering.

There was no minority interest in the balance sheet at the 31 December 1998 due to the acquisition by SES in the last quarter of the shares held by the minority shareholders in European Satellite Multimedia Finance S.A.

KEY PERFORMANCE RATIOS	12 months ended December 31
	1998 %	1997 %	1996 %	1995 %
EBITDA margin	80.6	80.2	83.0	75.9
Net income margin	34.1	35.4	33.9	27.8
Return on average equity	25.4	25.8	22.6	14.9
Debt to equity	69.9	71.3	80.9	65.0

Financial Commentary:

Group Revenues for the financial year ended 31 December 1998 increased 15.4% to LUF 20,851 million. This increase is due primarily to the start of services on Astra 1G in January, which expanded the provision of digital audio-visual services in France, Germany and Spain. In addition, ASTRA 2A entered into commercial service in October to provide digital audio-visual services to the UK and Ireland.

The launch of ASTRA 2A services contributed to a strong performance in the second half year, with revenues rising 17.7% (to LUF 10,760 million) compared to the second half of 1997. Group revenues also reflect the initial launch of multimedia services through European Satellite Multimedia Services S.A.

Earnings before interest, tax, depreciation and amortization (EBITDA) grew 16.0% to LUF 16,797 million. The 1998 EBITDA ratio grew to 80.6% compared to 80.2% in 1997, as operating expenses increased at a slower rate than revenues. Total operating expenses (which include external charges, staff costs and other operating costs) increased 13%, primarily due to the start up operating expenses relating to new multimedia activities and the opening up of SES' second orbital position at 28.2° East.

Depreciation and amortization increased by LUF 900 million or 19.4% to LUF 5,529 million reflecting the continued investment in the ASTRA satellite fleet. Specifically, the increase is explained by a full year's charge in respect of ASTRA 1G and 3 months depreciation for ASTRA 2A plus their associated ground equipment.

Net financing charges rose by LUF 177 million or 20.8% to LUF 1,027 million due to higher net debt reflecting the investment in new satellites mentioned above.

The above factors led to an increase in the profit on ordinary activities (i.e. profit before extraordinary items, taxes and franchise fees) of 13.7% to LUF 10,241 million.

The extraordinary expense of LUF 330 million relates to the costs incurred by the company resulting from the Initial Public Offering completed in July on the Luxembourg Stock Exchange.

Franchise fees and taxes increased to LUF 2,921 million due to the growth increase in profits. As a result of the Company's continued investments in satellite capacity and the resulting investment tax credits, the effective taxes and franchise fee rate was 29.4 % for the year.

Profit of the group reached LUF 7,106 million, an 11% rise or LUF 700 million over the previous year with a corresponding increase in earnings per A share to LUF 190.8 (LUF 172.0 in 1997).

Capital expenditures during the year amounted to LUF 4,976 million, which represents a decline versus 1997 of 54.8%. This arises from the timing of satellite and launch vehicle payments, which reflect the progress payments on satellite contracts. During the year the company completed payments in respect of the ASTRA 2A satellite and its launch and insurance, and commenced investment in the ASTRA Business Centre.

Operating Cash Flow at LUF 10,682 million was LUF 1,576 million lower than the previous year. This decline is primarily due to the change in trade creditors arising from capital expenditures. In 1997 trade creditors increased by LUF 1,445 million while in 1998 there was a reduction of LUF 1.064 million. However the underlying trend in operating cash flow remains at a very satisfactory level.

Net debt (total loans less cash) increased 5.5% at year-end 1998 to LUF 20,296 million versus LUF 19,231 million at the end of the previous year. This increase does not reflect the average debt situation during the year as substantial amounts were repaid from cash flow in the second half of the year. This situation is achieved despite the payment of a special dividend of LUF 1,862 million just prior to the Initial Public Offering.

There was no minority interest in the balance sheet at the 31 December 1998 due to the acquisition by SES in the last quarter of the shares held by the minority shareholders in European Satellite Multimedia Finance S.A.

1998 Highlights

• SES enhances ASTRA Satellite System: in January, ASTRA 1G enters operational service at 19.2° East; in August, ASTRA 2A is successfully launched and is permanently positioned at SES' second orbital position at 28.2° East.
• SES consolidates second orbital position at 28.2° East: In July, the International Telecommunications Union's (ITU) Radio Regulations Board (RRB) decides that the satellite network Europesat 1 shall no longer be taken into account when analyzing modifications or enhancements to the BSS (Broadcast Satellite Services) plan.
• SES conducts an Initial Public Offering of one sixth of the company's equity.
• SES enters new digital markets: In September, Wizja TV launches a package of Polish-language channels; in October, Sky Digital and the BBC launch digital services for the UK.
• SES renews long-term transponder contracts for analogue broadcasts on ASTRA 1A.
• SES creates a 100%-owned marketing affiliate in Poland, ASTRA Marketing Poland.
• SES diversifies services: In January, the ASTRA-NET multimedia platform takes up commercial service.
• SES restructures multimedia activities through the creation of SES Multimedia S.A.

SOCIETE EUROPEENNE DES SATELLITES S.A.

Summary Consolidated Accounts

Profit and Loss	12 months ended December 31
	1998 MEUR	1998 MLUF	1997 MLUF
Total revenues	516.9	20,851	18,075
Personnel costs	(22.2)	(896)	(760)
External and other operating charges	(78.3)	(3,158)	(2,827)
Depreciation	(137.1)	(5,529)	(4,629)
Operating profit before extraordinary items	297.3	11,268	9,859
Net financing charges	(25.4)	(1,027)	(850)
Profit on ordinary activities	253.9	10,241	9,009
Extraordinary expenses	(8.2)	(330)	-
Taxes and franchise fees	(72.4)	(2,921)	(2,696)
Minority interest	2.9	116	93
Profit of the Group	176.2	7,106	6,406

Balance sheet	12 months ended December 31
	1998 MEUR	1998 MLUF	1997 MLUF
Assets
Intangible fixed assets	4.6	188	10
Tangible fixed assets in use	885.0	35,701	33,733
Tangible fixed assets under construction	415.9	16,779	19,300
Total fixed assets	1,305.5	52,668	53,043
Trade and other debtors	123.7	4,987	4,716
Cash at bank and on deposit	98.3	3,967	5,595
Other assets	63.1	2,543	555
Total assets	1,590.6	64,165	63,909
Liabilities and Capital
Shareholder's finds (including minority interest)	719.7	29,031	26,954
Bank loans	545.8	22,013	21,076
Shareholder loans	55.8	2,250	3,750
Trade and other creditors	86.4	3,490	5,093
Other liabilities and provisions	182.9	7,381	7,036
Total liabilities	1,590.6	64,165	63,909

Statement of cashflow December 31	12 months ended December 31
	1998 MEUR	1998 MLUF	1997 MLUF
Profit of the group	176.2	7,106	6,406
Minority interests	(2.9)	(116)	(93)
Depreciation and amortisation	137.1	5,529	4,629
Other operating profit items	(19.2)	(770)	(692)
Net cash (absorbed)/generated by operations	(26,4)	(1,067)	2,008
Net operating cashflow	264.8	10,682	12,258
Net cash absorbed by investing activities	(169.4)	(6,834)	(11,020)
Net (repayments of borrowings)/new borrowings	(14.0)	(563)	3,262
Dividends paid	(121.6)	(4,905)	(2,278)
Minority interest	(0.2)	(8)	193
(Decrease)/Increase in cash	(40.4)	(1,628)	2,415
Cash at beginning of the year	138.7	5,595	3,180
Cash at end of the year	98.3	3,967	5,595

Euro amounts for comparison purposes only, translated at 1 Euro = 40.3399 LUF

The accounts are subject to approval by the Annual General Meeting of Shareholders scheduled for the 15^th April 1999.