Inmarsat reports solid growth in Interim Results 2018

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Inmarsat plc, the provider of global mobile satellite communications services, today provided the following unaudited information for the half year and second quarter ended 30 June 2018.

Group revenue increased by 4.9% to $717.2m in the first half of the year predominantly driven by growth in Aviation and reflecting the company’s diversified and resilient growth portfolio.

Maritime showed solid performance supported by continued strong market traction with Fleet Xpress while Aviation saw on-going double-digit revenue growth.

Adjusted Profit After Tax (excluding impact on income statement of unrealised conversion liability on 2023 convertible bond): declined $35.5m, reflecting changes in EBITDA, depreciation, financing costs and taxation. Statutory PAT (including the unrealised conversion liability element) decreased $170.6m.

Rupert Pearce, Chief Executive Officer, commented on the results and the outlook: “Inmarsat produced a robust set of results for the first half of 2018, delivering against a number of key strategic objectives and maintaining our continued positive operational momentum across a resilient and diversified growth portfolio. This performance highlights the quality of our business and our differentiated market position, which ensured significant market capture gains were achieved across our target end markets in the period. Consequently, we remain well placed to deliver further consistent revenue growth in the short term and to capture significant additional growth opportunities over the medium to long term.”

The use of data at sea and in the air is expected to continue growing significantly in the future, creating a major opportunity for mobile satellite broadband communication providers.

He added: “Inmarsat is extremely well positioned to access the significant market opportunity ahead, given our established and material market presence, our differentiated capabilities in end-to-end reliable and secure networking services to our customers, not simply broadband pipes, our technology leadership, our specialisation in delivering satellite mobility services to customers, our valuable global spectrum assets and our market-leading distribution channel.

“As a result of these elements, Inmarsat offers investors a diversified growth portfolio with multiple paths to future value creation, based on a solid foundation of incumbency and differentiated capabilities. We aim to continue delivering moderate growth in Maritime, Government, Aviation and Enterprise from our long-established L-band services, with higher growth to come from the delivery of new GX services to customers in these markets. Furthermore, we expect to generate significant growth from our delivery of broadband services to the fast-growing and substantial IFC segment in commercial aviation. Our progress in each of these areas was evidenced by our performance in the first half of 2018.

“We also have a number of incremental growth opportunities available over the medium to long term. These include monetising the capabilities of our Inmarsat-5 F4 satellite, delivering major strategic projects for Government customers, growing dedicated regional businesses in hitherto untapped geographies, leveraging our digital services capabilities, increasing our presence in the “Internet of Things” environment and supporting Ligado Networks as they lease our L-band spectrum in North America.

“Our revenue growth profile will be supported by a focus on operational leverage via a carefully controlled cost base and an infrastructure capital investment programme that is expected to meaningfully moderate from the start of the next decade. This will help to drive our cash flow growth, in line with our revenue growth, over the medium to long term.

“Inmarsat is therefore confident in continued profitable growth, ensuring we retain our position as a market leader in our target end markets.”