Inmarsat Beats Expectations, Posts Higher Revenues
London, UK, August 6, 2013 — Inmarsat plc. has reported slightly higher revenues and profits in the first half of the year, fuelled by strong growth in demand for broadband communications on ships and aircraft. Inmarsat reported first half 2013 revenues of US$635.2 million, up 1 percent than the US$629.6 million during the same period last year. Its adjusted EBITDA was US$327.2 million for the first half of the year versus $332.1 million last year while profit before tax was US$185.5 million against US$222.8 million last year.
The good showing prompted the company to grant interim dividend of 17.79 US cents, up 5 percent from last year.
For the second quarter 2013, Inmarsat Global MSS revenues rose to US$195.9 million, up 3.7 percent from last year’s second quarter revenues of US$188.9 million. Inmarsat Solutions’ second quarter revenues, however, were lower at US$195.1 million compared to last year’s US$205.4 million.
Inmarsat posted total EBITDA of US$174.0 million, US$2 million lower than last year’s second quarter.
Rupert Pearce, Chief Executive Officer, said the company remains on track to achieve its top two-year target range for wholesale MSS revenue growth.
“Within our Inmarsat Solutions business, while the contracting environment for our US Government business remains challenging, the revenue results for our other business units have remained positive and, with tight cost control across the group, we are satisfied with the overall results for the quarter.”
He also reported the successful launch and early stage deployment of Inmarsat’s our Alphasat satellite. Alphasat enhances the capacity, power and coverage of the company’s network for the EMEA region, and provides in-orbit network redundancy and extends the life Inmarsat-4 network.
Growth in Inmarsat’s maritime data revenues was driven by increased take-up and usage of its FleetBroadband service and by pricing and service package changes implemented in May 2012 and March 2013. During the first half of 2013, the company added 4,140 subscribers of which 2,216 were added during the second quarter.
In the land mobile sector, Inmarsat saw strong growth in voice services offset by a decline in data revenues due to on-going troop withdrawals from Afghanistan. It estimates that global events including Afghanistan contributed US$3.7 million more revenue in the first half of 2012 when compared to the first half of 2013.
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