Government weakness drags on Inmarsat’s third-quarter revenues

 
Oliver Smith
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BRITISH satellite operator Inmarsat yesterday posted a rise in profit for the third quarter, but warned it expected to see continuing weakness from its government arm as revenues from the unit fell $17.8m (£11.2m), dragging overall revenues down two per cent.

Inmarsat reported overall revenues of $300.6m for the quarter to 30 September, while year-on-year profits rose from $23.5m to $104.1m as impairments in the previous year were not repeated and the company cut operating costs by $3.6m.

“The trading environment seen in the third quarter is expected to continue through the remainder of 2014, with continuing weakness in government, and underlying revenue growth in our other three businesses [excluding the impact of acquisitions and disposals],” said Inmarsat.

Shares in the group rose by 1.3 per cent yesterday to close at 699p.