Inmarsat Q2 dips
August 2, 2013
British satellite operator Inmarsat has reported a slight dip in Q2 earnings as the impact of US defence spending cuts has a continued effect.
The company, which provides communications to shipping, aircraft and remote locations worldwide, reported EBITDA of $174 million, down from $176 million a year ago.
Sequestration in the US has hit Inmarsat’s Solutions reseller unit, which saw revenues fall to $195.1 million in the quarter from $205.4 million a year ago. However, revenue in its core maritime business rose by 3.7 per cent to $195.9 million, helped by increased take-up and usage of its broadband packages.
Chief Executive Rupert Pearce said that while the contracting environment for Inmarsat’s US government business remained challenging, revenue for its other business units grew, and he was satisfied with the overall results.