Published on: May 24, 2016
SES recently posted its full year results which showed a 5% increase in revenue and profits after tax. This can be attributed to ongoing efforts to increase our scale thereby growing our ability to serve the continuing demand for global solutions which require satellite connections.
“Our growth is also attributed to the progress of our new business strategy which was laid down in 2014. The strategy had one overriding goal – to focus on our four core market verticals, namely video, enterprise, mobility and government. This differs from prior years where our reporting and organizational stance was regional and only allowed us to talk about the business from a geographical market perspective. “Our new approach allows us to offensively de-average our approach to each market segment and achieve both scale and focus,” says Ibrahima Guimba-Saidou.
The markets served by satellite connectivity have very different growth dynamics irrespective of their verticals. SES has noted this and we’re enthusiastic to work towards providing products and solutions that are scalable for our customers. Even our European market which is typically considered to be a mature market, still has great potential for growth in high definition (HD), we expect channel growth in this sector to increase by 75% between 2015 and 2019 as noted by data from Euroconsult. This is important because HD gives end-users a remarkably better viewing experience whilst delivering the most cost effective distribution mechanism and resilient solution because of the redundancy and back up built into SES’ satellite fleet.
Our growth in Latin-America, Africa and the Asia-Pacific has also seen substantial growth in both SD and HD channel growth. Illustrating our commitment to these markets we recently launched SES-9 a dedicated satellite that will serve up to 22 million households across the Asia-Pacific which includes India, Indonesia and the Philippines.
“We believe that HD and Ultra HD represent key drivers of sustainable growth in video. This is because of the additional bandwidth required to broadcast an improved viewing experience. While to some that may appear under linear TV, with video trends evolving which is relevant; the video experience is evolving from a single screen to multiple screen experience, which ultimately means that linear and no-linear distribution are co-existing in the same space- reinforcing each other. All SES’ major video clients globally increasingly require more than solely satellite capacity. The ability to complement satellite coverage with value-added services including content management, encryption and playout is often viewed as a key-differentiator as these services can be valued at a premium,” adds Ibrahima Guimba-Saidou.
Our core approach to growth remains how we can allocate both human and economic capital that enables SES to create value. We will achieve this through globalization, the differentiation of our business across our prioritized verticals which are video, enterprise, mobility and government. Lastly we need to ask ourselves whether what we’re doing helps us shape the future.
In doing so, SES will effectively proactively search for new insights, ideas and technologies that evolve our current business and add new elements to produce our next growth curve, concludes SES spokesperson.