Satellite operator Inmarsat sees jump in earnings

City A.M. Reporter
Satellite operator Inmarsat posted a 17 per cent rise in full-year earnings, helped by increasing demand for broadband communication on ships, and said it remained confident for the future.

The company, which provides communications to ships, aircraft and remote land-based locations, posted earnings before interest, tax, depreciation and amortisation of $696.1m (£427.9m) on 13 per cent higher revenue of $1.17 billion.

Inmarsat said it had seen some slowdown in growth in the last quarter of 2010 and in early 2011, resulting from lower usage levels for some products, but said new terminals in its shipping fleet meant it remained confident in its prospects.

Inmarsat said it would receive additional revenue from its partnership with LightSquared, owned by Harbinger Capital Partners Fund, in the year ahead under a deal to carve up its spectrum in North America for potential use for mobile phone services. It received the payment in January.

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