Inmarsat in high orbit as revenues soar 18.4pc in strong third-quarter trading

City A.M. Reporter
SATELLITE operator Inmarsat beat expectations with an 18.4 per cent rise in third quarter earnings, helped by growth in aeronautical and leasing services and by an improvement in maritime, its largest sector.

The company, which provides voice and data services to shipping, aircraft and remote locations worldwide, reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $189.5m (£1.17m) on group revenue of $308.8m.

Revenue, excluding a contribution from its Stratos broadband business, was $201.2m, up 13.9 percent.

Chief executive Andrew Sukawaty said yesterday that the result kept the group on track for a good result for the year.

The number of the group’s terminals on ships rose 5.8 per cent, and it said it was adding maritime broadband services at the rate of more than 2,000 a quarter.

An expanded agreement with AP Moller Maersk, the world’s largest container-shipping line, would contribute before the end of the year, he said.

Its aeronautic services recorded the strongest growth, up 38 per cent, with the vast majority still coming from its traditional government and large business jet customers, Sukawaty said. Emirates Airline, however, uses Inmarsat’s network to provide services on its flights, Sukawaty said.