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TheStreet Open House

Inmarsat Plc Interim Management Statement

Stocks in this article: ISAT

LONDON, November 2, 2011 /PRNewswire/ --

Inmarsat plc (LSE: ISAT.L), the leading provider of global mobile satellite communications services, today provided the following information for the three months ended 30 September 2011.

Inmarsat plc Highlights

  • Total revenue $364.1m up 17.9% (2010: $308.8m)
  • Total active customer terminals up 12.5%
  • XpressLink - unique hybrid maritime service launched
  • IsatData Pro launched for M2M market
  • Global Xpress programme on track and budget

Inmarsat Group Limited Third Quarter Highlights

  • Total Inmarsat Global revenue $245.2m up 21.9% (2010: $201.2m)
  • Total Inmarsat Global MSS revenue $180.7m (2010: $185.1m)
  • Total Inmarsat Solutions revenue $197.4m (2010: $186.0m)
  • Total Group EBITDA $224.4m up 18.4% (2010: $189.5m)

Andrew Sukawaty, Inmarsat's Chairman and Chief Executive Officer, said, "Revenue from our Cooperation Agreement with LightSquared continues to drive strong headline growth and offset a slowdown in our MSS revenues.  While third quarter MSS results were in line with our expectations, as previously stated, we are unlikely to see consistent evidence of a return to MSS revenue growth until next year. However, in the meantime we are making progress with key new product developments and with our Global Xpress programme and these are important building blocks to future value and new growth."

Inmarsat plc    

                                              Three months ended
                                                  30 September
    (US$ in millions)                            2011      2010   Increase
    Inmarsat Global                              245.2     201.2    21.9%
    Inmarsat Solutions                           197.4     186.0     6.1%
                                                 442.6     387.2
    Intercompany eliminations and
    adjustments                                  (78.5)    (78.4)
    Total revenue                                364.1     308.8    17.9%

 

Inmarsat Global

                                      Three months ended
                                          30 September
                                                           Increase/
    (US$ in millions)                    2011      2010    (decrease)
    Maritime voice services              21.6      24.5     (11.8%)
    Maritime data services               68.0      67.1       1.3%
    Total maritime sector                89.6      91.6      (2.2%)
    Land mobile voice services            2.2       1.4      57.1%
    Land mobile data services            34.8      34.6       0.6%
    Total land mobile sector             37.0      36.0       2.8%
    Aeronautical sector                  26.6      27.2      (2.2%)
    Leasing                              27.5      30.3      (9.2%)
    Total mobile satellite services     180.7     185.1      (2.4%)
    Other income                         64.5      16.1
    Total revenue                       245.2     201.2      21.9%

Growth in Other income, primarily resulting from our Cooperation Agreement with LightSquared, was responsible for our Inmarsat Global overall revenue growth during the third quarter.  During the quarter we recognised $56.4m of revenue with respect to the Cooperation Agreement and $3.5m of operating costs.    

In the maritime sector, our results continue to be adversely impacted by customer migration to our FleetBroadband service where pricing is typically lower than the older services being replaced.  In addition, voice to email substitution, lower voice pricing and competition from alternative providers, have contributed to lower maritime revenues year over year.  

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