DRS Acquisition and Mobility Business Boost SES Revenue in Q1 2023 

Photo: SES

SES grew revenue nearly 10% in the first quarter of 2023, with a boost from its DRS Global Enterprise Solutions acquisition and the stronger U.S. dollar. 

The operator reported 490 million euros ($540 million) in revenue in the first quarter of 2023, compared to 448 million euros ($494 million) in the same time last year. SES completed the DRS GES acquisition in August, combining the business with subsidiary SES Government Solutions. 

There was no update on the possibility of a merger with Intelsat after SES confirmed in late March there had been discussions. “At this stage, there can be no certainty that a transaction would materialize,” SES said Thursday. 

SES is growing in its Network segment due to Mobility, while Video continues to decline. Video revenue dropped 8% year-over-year to 242 million euros ($267 million). However, about half of that decline was due to a periodic piece of revenue recognized in Q1 2022. 

The Networks segment grew by 3% year-over-year, led by double-digit growth in Mobility — which grew 14% over the same period last year to 68 million euros ($75 million). 

CEO Steve Collar commented that SES has signed a number of deals since the start of the year adding 90 million euros ($99 million) to the Mobility backlog. 

“2023 has started well with solid Q1 results and excellent progress on both O3b mPOWER and our US C-band project,” Collar said. “Close to double digit revenue growth as reported reflects the contribution from our acquisition of DRS GES, while solid EBITDA performance underscores our continued focus on execution across the business.”

The company’s full year 2023 2023 outlook is unchanged and on track for revenue of 1.95 billion euros to 2 billion euros ($2.15 billion to $2.21 billion).