Inmarsat boosted by aviation
August 30, 2022
By Chris Forrester
In reporting its Q2 results, Inmarsat said that its Aviation division had shown significant growth as its client airlines emerged from the Covid challenges.
Inmarsat also told analysts that its planned sale to Viasat is on track subject to UK and European regulatory approval. The combination of the two giant satellite operators should happen towards the end of this year.
CEO Rajeev Suri added that the satellite industry consolidation that Inmarsat had long predicted is well under way “further validating the rationale for the Viasat/Inmarsat consolidation.”
Overall, Suri was positive saying that it remained on track for “strong” 2022 results.
Q2 revenues were up 5 per cent y-o-y to $363.4 million (€363.2m). For the first half of the year, revenue was up 6 per cent and EBITDA grew a healthy 9 per cent.
For the quarter-year ending June 30th, Inmarsat’s Aviation divisional revenue grew by 47.8 per cent, to $79.2 million. Its Business & General aviation segment grew 53 per cent. Inmarsat reported that its JetXpress in-flight business aviation connectivity hardware was now installed on 1,197 planes as of June 30th, compared to 980 aircraft a year ago. Its Aviation division is now responsible for 22 per cent of Inmarsat’s overall business.
Staying with Aviation, its long-haul aviation segment, and which uses its GlobalXpress Ka-band satellite connectivity, is now installed on 872 jets and up from 838 from a year ago. Revenues from in-flight connectivity rose 59 per cent helped by aircraft returning to work and rising passenger activity.
But if its aircraft division was doing well, it was another story at its ‘Governmental’ segment where overall revenues fell 4.6 per cent, with US-based revenues down 10 per cent.
CEO Suri told analysts that Inmarsat’s guidance for the Government division was for a recovery to grow during the overall 2022 compared to 2021 with contract renewals coming on board during the second-half of the year.