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TheStreet Open House

Inmarsat Plc Reports Interim Results 2011

LONDON, August 4, 2011 /PRNewswire/ --

Inmarsat plc (LSE: ISAT.L), the leading provider of global mobile satellite communications services, today reported consolidated financial results for the 6 months ended 30 June 2011.

Inmarsat plc Interim Results Highlights

  • Total revenue $682.9m up 20% (2010: $570.7m)
  • EBITDA $426.9m up 28% (2010: $334.4m)
  • Profit before tax $254.8m up 68% (2010: $151.8m)
  • Interim dividend of 15.4 cents (US$) up 10%
  • 30,000 IsatPhone Pro handsets activated to date
  • Rupert Pearce appointed CEO effective January 2012
  • Acquisition of Ship Equip International completed
  • $1.45bn of new financing completed, Inmarsat-5 fully-funded
  • $250m share repurchase programme announced today

Inmarsat Group Limited Second Quarter Highlights

  • Total revenue $359.0m up 24% (2010: $289.2m)
  • Total Inmarsat Global MSS revenue $181.3m (2010: $181.7m)
  • EBITDA $222.7m up 32% (2010: $168.6m)

Andrew Sukawaty, Chairman and Chief Executive Officer, said, "Income from our Cooperation Agreement with LightSquared is driving record revenue and EBITDA growth and offsetting a slowdown in the growth of our Inmarsat Global MSS revenue. While we believe that a return to more normalised revenue growth in our MSS business is only a matter of time, we expect near-term factors will constrain growth for longer than previously anticipated.  As a result, we are revising our outlook for MSS revenue growth for 2011.  In the meantime, given the strong financial position of the company, we have increased our interim dividend and have launched a share repurchase programme."

Inmarsat plc     

                                                 2011       2010
    (US$ in millions)                        Half year  Half year  Increase
    Inmarsat Global                              472.6      367.8     28.5%
    Inmarsat Solutions                           364.7      355.8      2.5%
                                                 837.3      723.6     15.7%
    Intercompany eliminations and
    adjustments                                 (154.4)    (152.9)
    Total revenue                                682.9      570.7     19.7%

Inmarsat Global

                                       
                                        2011      2010     Increase/
    (US$ in millions)               Half year  Half year  (decrease)
    Maritime voice services              46.9       48.9      (4.1)%
    Maritime data services              131.3      128.8       1.9%
    Total maritime sector               178.2      177.7       0.3%
    Land mobile voice services            3.3        4.0     (17.5)%
    Land mobile data services            77.0       75.8       1.6%
    Total land mobile sector             80.3       79.8       0.6%
    Aeronautical sector                  48.6       49.6      (2.0)%
    Leasing                              54.8       55.8      (1.8)%
    Total mobile satellite services     361.9      362.9      (0.3)%
    Other income                        110.7        4.9
    Total revenue                       472.6      367.8      28.5%

Growth in Other income, primarily resulting from our Cooperation Agreement with LightSquared, was responsible for our Inmarsat Global overall revenue growth during the first half.  During the first half we entered into a further amendment agreement with LightSquared and expect to begin recognising additional revenue from this amendment during the second half of 2011.  

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