Figures

Key data

(in millions of euros)

	2023	2022	%
Revenue	249.3	229.8	8.5%
EBITDA⁽¹⁾	126.2	148.4	(15.0%)
Net profit attributed to the controlling company	30.4	46.8	(35.1%)
Fiscal year dividend	37.4	44.4	(15.8%)
Operating cash flow ⁽²⁾	189.6	130.9	44.8%
Total assets	1342.8	1254.8	7.0%
Equity	727.9	724.3	0.5%
Investments⁽³⁾	119.2	87.0	37.0%
Net financial debt ⁽⁴⁾	182.1	235.2	(22.6%)
Leverage⁽⁵⁾	20%	24.5%	(18.4%)
Debt coverage ratio (Net Debt / EBITDA) Covenant	1.49	1.52	(2.0%)
Solvency ratio (Shareholder’s Equity / Net Debt) Covenant	3.88	2.98	30.2%

(1) Calculated as the operating income of the income statement plus depreciation and impairment.
(2) Cash flows from operating activities less interest payments and receipts)
(3) Cash flows from investing activities by adding other equity instruments. Excludes IFRS 16 payments that are part of the financing cash flow.
(4) Includes valuation of hedging transactions and guarantees in favour of third parties
(5) Calculated as Net Financial Debt divided by Equity plus Net Financial Debt

Economic-financial results

Operating revenue

The Group’s total operating revenue reached 249.3 million euros in fiscal year 2023. This amount represents an 8.5% increase compared to 2022, thanks to the boost from the commercial implementation of the new satellite in the fleet, Amazonas Nexus, and the new contracts signed during the fiscal year.

Of the total consolidated operating revenue, turnover amounted to 245.3 million euros, corresponding to revenue from spatial capacity leasing and the provision of managed services, which grew by 8.5% this fiscal year. This increase is not homogeneous among the various types of service, mainly as a result of the transformation process Hispasat is undergoing, aimed at providing advanced satellite connectivity services.

Turnover

(in millions of euros)

Cifra negocio x tipo de servicio respons

Consolidated operating costs and EBITDA

In 2023, consolidated operating costs amounted to 127.3 million euros. On a like-for-like basis, and homogenising the full-year effect of the August 2022 integration of Axess, the amount for the past year would be 124.7 million euros. Excluding the customer portfolio provisions recorded, the costs for fiscal year 2023 reflect the savings from the synergies at Axess generated in satellite capacity contracting, as well as lower expenses in the video business in Peru.

Moreover, the result of the companies consolidated by the equity method in 2023 was 4.6 million euros, of which 4.4 million euros correspond to activities analogous to the activity of the Hispasat Group, while the remaining 0.2 million euros correspond to activities other than the services provided by the Group.

Of the evolution described in the previous sections, at the end of 2023 the resulting consolidated EBITDA was 126.2 million euros, which represents an operating margin on revenue of 50.6%.

The change in the extension of consolidation brought about by the acquisition of the Axess group, completed in the second half of the last fiscal year, has altered the structure and composition of the income statement in 2023, reflecting the greater relative weight of managed services, incorporating, on a differential basis, the costs corresponding to their provision. This evolution of the business model, with its dilutive effects on EBITDA, largely explains the comparative operating profit compared to 2022.

Results

In 2023, the Group achieved an operating income of 34.1 million, mainly driven by two factors. The first is the decrease in depreciation, which corresponds to the temporary effect of the depreciation between the Amazonas 2 satellite, which ended its service life in December 2022, and the implementation of Amazonas Nexus, which took place in the middle of the year. Secondly, the improvement in the financial result reached (9.1) million euros, which represents a reduction in net financial cost of around 2.7 million euros compared to the previous fiscal year.

Dividends

In fiscal year 2023, the Group paid a dividend to its shareholders of 37.4 million euros, corresponding to an 80% pay-out on earnings from fiscal year 2022.

The shareholders’ meeting of 25 April 2024, in line with this criterion, approved the distribution of a dividend of 24.3 million euros on earnings from 2023.

Cash flow and debt

Cash flow

In fiscal year 2023, the Hispasat Group continued to generate a high operating cash flow of almost 190 million euros, driven not only by the organic business, but also by the public funds received for the execution of the UNICO Demanda Rural connectivity project.

From this cash flow, 78.4 million euros were applied to investment activities for fixed assets (tangible and intangible), mostly corresponding to the execution of the Amazonas Nexus project. The reduction in the amount of this heading compared to the 2022 figures as a result of the inorganic operations carried out last year is worth noting.

Thanks to the combination of a high operating cash flow and tight organic investment planning, the Group allocated 32.8 million euros to debt service and lease payments qualified under IFRS-16, while at the same time dedicating 37.4 million euros to shareholder remuneration with the payment of the annual dividend.

Investments

The Group’s investments in tangible and intangible fixed assets in fiscal year 2023, excluding the accounting effect of the application of IFRS-16 and the impact of the new treatment of capital grants, amounted to 78.8 million euros, down 4.4% from 82.4 million euros from the previous fiscal year.

Investments in the Amazonas Nexus programme amounted to 53.4 million euros, which represents 67.8% of the investment effort in operating fixed assets during the year.

Net financial debt evolution

Liquidity and cash reserves

The Group holds a liquidity policy that is able to ensure compliance with the payment commitments we have taken on, diversifying the coverage of financing needs and debt repayments.

As of 31 December 2023, the liquidity position amounted to 344.6 million euros (119.9 million euros cash available and 224.7 million euros undrawn lines of credit).