Inmarsat plc announces interim results for the half year ended 30 June 2014

Inmarsat on track for 2014, sees start of Global Xpress, announces EU aviation services

London, UK, 7-8-2014 — /EuropaWire/ — 5 August 2014. Inmarsat plc (LSE: ISAT.L), the leading provider of global mobile satellite communications services, today provided the following information for the half year ended 30 June 2014.

Financial Highlights

  • Total revenues $652.3m, up 1.9% (2013: $640.3m)
  • Inmarsat Global Wholesale MSS revenues $387.6m, up 1.9% (2013: $380.5m)
  • Adjusted total revenues $605.2m (2013: $635.2m)
  • EBITDA $369.7m, up 12.3% (2013: $329.2m)
  • Adjusted1 EBITDA $322.8m (2013: $327.2m)
  • Profit before tax $168.3m (2013: $185.5m)
  • Interim dividend of 18.68 cents, up 5%
  • Issue of $1 billion 4.875% Senior Notes due 2022

Operational Highlights

  • Global Xpress commercial services started on Inmarsat-5 F1 on 1 July 2014
  • New European Aviation Network Programme announced
  • Memorandum of Understanding signed with British Airways to be a launch customer

Inmarsat Group Limited – results for the Second Quarter

  • Total revenues $307.6m (2013: $326.6m)
  • Inmarsat Global MSS revenues $196.1m (2013: $195.9m)
  • EBITDA $159.9m (2013: $174.0m)

Rupert Pearce, Inmarsat’s Chief Executive Officer, commented, “Inmarsat continued to make good progress in the first half against a strong prior half year performance. We saw strong growth in Maritime and Aviation but continued to see slowdown in Government expenditure. We again added FleetBroadband, XpressLink and SwiftBroadband subscribers, whilst maintaining ARPU. We also announced a major new initiative to develop a combined satellite and terrestrial network to provide in-flight passenger services across Europe using our S-band spectrum licenses. Finally, we ended the period on a high note with the commercial launch of Global Xpress (“GX”) services on 1 July and, following an extensive testing programme, the US Government became our first GX customer, taking service from the first day of availability. Following the recent Proton launch failure, the launch of our remaining GX satellites is likely to be delayed but we nevertheless remain very confident of the medium-term growth opportunities for the company.”

Outlook

Whilst our medium-term expectations for the take-up of GX services remain unchanged, the recent Proton launch failure has delayed the launch of the second and third Inmarsat-5 satellites and hence the start of GX services on a global basis. We therefore expect that GX and, therefore, Inmarsat Global MSS revenues, will be correspondingly lower than previously expected over 2014-16. However, we continue to expect Inmarsat Global MSS revenues to fall within the 8% to 12% CAGR growth range for 2014-16 expressed in our medium-term guidance. The overall trading environment for our L-band and other business lines remains positive, except in our US Government business unit where, as previously stated, trading remains difficult in light of customer budget pressures and other medium-term factors. In 2014, we expect capital expenditure on a cash basis to be between $500m and $550m.

Results Conference Call

Inmarsat management will discuss the second quarter results and other financial and business information in a conference call on Tuesday 5 August 2014 at 0800 hrs London time. To access the call please dial +44(0)20 3427 1916. The conference id for the call is 9365506. The call will be recorded and available for one week after the event. To access the recording, please dial +44(0)20 3427 0598 and enter the access code 9365506#.

A copy of this interim announcement for the half year ended 30 June 2014 can be found on our website at www.inmarsat.com.

Forward-looking Statements

Certain statements in this announcement constitute “forward-looking statements”. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include: general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance or programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances.

Contact: Inmarsat plc, London, UK

Media Enquiries:
Chris McLaughlin
Tel: +44 (0)77 9627 6033
christopher.mclaughlin@inmarsat.com
Investor Enquiries:
Simon Ailes
Tel: +44 (0)20 7728 1518
simon.ailes@inmarsat.com

Comments are closed.