Inmarsat shares suffer for the second day in a row

 
Jessica Morris
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Inmarsat satellites are used for broadband on boats, planes and remote land locations

Investors continued to punish Inmarsat after the satellite and communication services company cut its full-year revenue forecast yesterday.


Inmarsat shares slumped 4.6 per cent to 823.5p in late-morning trading, taking their decline to 26.1 per cent year-to-date.

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It comes a day after Inmarsat shares plummeted yesterday after it lowered its full-year revenue forecast by $50m to the $1.175bn to $1.25bn range, citing a slowdown in maritime and energy markets.

"Sustained recession in global maritime and energy markets continues, and in Maritime in particular good growth in our newer products continues to be more than offset by the decline of our older products and by lay-ups and scrappage of installed ships," Inmarsat chief executive, Rupert Pearce, said.


Inmarsat also revealed profits before tax fell to $58.5m (£40.3m) for the three months ended March 2016, compared with $96.3m the year before.

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Revenue for the three-month period also dipped to $298.6m, down two per cent on the prior year's $304.8m.

Inmarsat is no stranger to a tumbling share price after revealing worse than expected results. In March, it announced that weak government spending had caused a dip in its profits and its share price closed down 4.2 per cent, dragging the FTSE 100 down significantly.