Inmarsat to speed up investment in Global Xpress
Satellite operator Inmarsat saw improved and more stable revenues from its core wholesale operations in the third revenue, leaving it well placed to hit this year's and next year's revenue targets.
Satellite operator Inmarsat saw improved and more stable revenues from its core wholesale operations in the third revenue, leaving it well placed to hit this year's and next year's revenue targets.
Mobile satellite services (MSS) revenue at Inmarsat Global rose 3.3% in the three months ended September 30th to $186.7m from $180.7m the year before. However, the Other Income figure at Inmarsat Global, which includes the co-operation agreement with cash-strapped US telecoms network firm LightSquared, crashed to £11.7m from £64.5m the year before.
Inmarsat Solutions' revenue moved up 4.3% to £205.9m from £197.4m the previous year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In total, group revenue in the third quarter was down 10.5% year-on-year to £325.9m from £364.1m.
"The third quarter saw continued customer take-up of new services across our business sectors," revealed Rupert Peace, Chief Executive Officer of Inmarsat.
"In maritime, another very positive quarter was driven by the benefit of pricing initiatives earlier in the year and by the continuing strong take-up of FleetBroadband. Despite the headwinds we face from the on-going withdrawal from Afghanistan, results for our land mobile business improved with growth from IsatPhone Pro and positive underlying data growth due mainly to new BGAN subscribers," he added.
The group's XpressLink service continues to gain traction in the market and is leading the company to feel increasingly confident about the launch of Global Xpress, the superfast Ka band broadband network, next year. As a result, Inmarsat has decided for 2013 to increase its level of investment in certain L-band opportunities and bring forward some costs for Global Xpress that will provide for a more advanced state of readiness for service launch.
At the end of September, the Inmarsat group had net borrowings of $1,423.0m, made up of cash and cash equivalents of $446.8m and total borrowings of $1,869.8m. Including cash and available but undrawn borrowing facilities, the group had total available liquidity of $1,527.5m.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
How to invest in nuclear power
We need nuclear power to go green, says Dominic Frisby. But there is a better option than huge power stations
By Dominic Frisby Published
-
Chase slashes its easy-access savings rate – is it time to switch?
The Chase easy-access savings account has proved popular with savers thanks to its competitive rate and bonus deals. But, as the rate has dropped, has it lost its charm?
By Katie Williams Published