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Inmarsat revenue up 9%

March 29, 2023

By Chris Forrester

London-based Inmarsat reported revenue growth of 9 per cent for its 2022 trading year, to a total of $1.47 billion (€1.35bn).

Inmarsat’s EBITDA (earnings before interest, tax and other charges) jumped by 15 per cent to $850 million in 2022, despite saying that chip-set and other component shortages affected the availability of satellite phones.

Q4 revenue grew 16 per cent year-on-year while EBITDA was up 22 percent, excluding Viasat transaction costs, contributions from Ligado and supported by foreign exchange gains. Free cash flow was up $60 million over FY22, a robust performance given significant investment in future technology and additional satellites.

Those component shortages also impacted revenues at its Maritime division, but CEO Rajeev Suri dismissed this as “a 2022 issue and I don’t see it being an issue for us in 2023. The team have done a good job to create a stronger pipeline.”

He also reported that cost-of-living and related inflationary pressures meant that Inmarsat had made two salary uplifts during 2022.

Drilling down into its core businesses, Inmarsat reported that its aviation division had grown by 37 per cent during the year, while its maritime business, its largest, had expanded by 2 per cent, with “a robust backlog of vessels” waiting for broadband installation.

Inmarsat is in the process of being acquired by California-based Viasat in a deal worth $7.3 billion and subject to regulatory permissions. In relation to this, the company said: “While it would be inappropriate to pre-judge the outcome of any regulatory processes, we remain confident the combination of the two companies’ complementary technology and assets will create a stronger business, offer greater capabilities and higher quality services to customers, and enhance competition in the industry.”

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