Inmarsat pleases market
March 6, 2015
By Chris Forrester
Inmarsat delivered a “solid” Q4 to December 31st helping boost overall revenues for the year of $1.29 billion, up from $1.26 billion a year earlier. Its maritime segment soared by 13.5 per cent to $596 million, with organic growth of 3.2 per cent.
However, amidst this good news, Inmarsat reported that its government revenues fell back 21.7 per cent to $320 million, its enterprise revenues also suffered with a 24.8 per ,cent drop to $167 million. Helping compensate for these falls were its aviation revenues which grew 38 per ,cent to $101 million.
For 2015, the company expects a similar trading environment to last year, with continuing underlying revenue growth in Maritime, Enterprise and Aviation and some continued weakness in Government, particularly in the US. Capex in 2015 is estimated at $450-500 million, and the figure will drop to less than $400 million in 2016 and 2017.
Giles Thorne, an analyst at investment bank Jefferies, summed up Inmarsat’s guidance for the year ahead, saying the operator expected “continuing underlying growth” and a progressive dividend pay-out for investors. Inmarsat’s share price closed March 5th on £8.85.