Satellite communications firm Inmarsat has reported increased revenue driven by demand for in-flight broadband.
Shares in the company jumped more than five per cent as the company, which provides communications to ships, aircraft and remote locations, posted its full-year results.
Read more: Satellite firm Inmarsat shares fall
Revenue increased by 5.3 per cent to $1.46bn in 2018, however, profit after tax was down 32.3 per cent to $125m.
Earnings were up 4.2 per cent, from $739.3m to $770.1m in 2018 after increasing 14.6 per cent in the fourth quarter of last year.
Why it’s interesting
Aviation revenue was up 40 per cent to $256.1m from $181.8m driven by the company’s global GX broadband offering.
Within the company’s aviation sector in-flight connectivity revenues more than doubled to $101.3m.
What the company said
Chief executive Rupert Pearce said: "Inmarsat delivered consistent growth in 2018, building on our return to growth established in 2017.
“I am particularly pleased by the 85 per cent revenue growth in GX services and a doubling of our in-flight connectivity revenues, both of which augur well for the future.
"We remain focused on building and defending substantial market share in our target markets, supported by our diversified product portfolio and leading-edge networks. This will ensure we are able to fully capitalise on both the immediate and longer-term growth opportunities in these markets.
"Supported by a tightly controlled cost base and an infrastructure capital investment programme which we are confident will meaningfully and sustainably moderate from 2021, we expect to generate sustained free cash flow growth over the medium to long term."