MORTEN SINGLETON | INVESTEC
First half numbers are fine, but MSS outlook has been revised down for 2011 and five-year guidance is under review due to continued acceleration in the upgrade dilution effect. This is offset by a slight hike in the dividend and a new $250m share buyback. We recommend buying into any weakness.
MARK JAMES | LIBERUM CAPITAL
We remain of the view that the current level materially undervalues both the core business and the US spectrum. Soft revenues in the core have undoubtedly disappointed but the company is still posting growth, through the LightSquared arrangements, that many would envy.
JONATHAN JACKSON | KILLIK & CO
Poor interim results. Income from the group’s agreement with LightSquared is driving growth, and offsetting a slowdown in the growth of Inmarsat Global MSS revenue. The group expects near-term factors will constrain growth for longer than previously anticipated.