News Feed Item

Inmarsat plc Interim Management Statement

LONDON, November 5, 2012 /PRNewswire/ --

Inmarsat plc (LSE: ISAT.L), the leading provider of global mobile satellite communications services, today provided the following information for the three months ended 30 September 2012.

Inmarsat plc - Highlights

  • Total revenue excluding LightSquared $322m up 5% (2011: $308m)
  • Wholesale maritime revenues up 17%
  • Over 2,100 FleetBroadband terminals added in Q3
  • Over 71,000 IsatPhone Pro subscribers at end of Q3
  • XpressLink gaining market share with new orders
  • Honeywell 5-year capacity commitment for business aviation with Global Xpress

Inmarsat Group Limited - Third Quarter Highlights

  • Inmarsat Global MSS revenue $187m up 3% (2011: $181m)
  • Inmarsat Solutions revenue $206m up 4% (2011: $197m)
  • Total EBITDA excluding LightSquared $161m (2011: $172m)
  • MSS active terminals up 13%

Rupert Pearce, Inmarsat's Chief Executive Officer, said, "The third quarter saw continued customer take-up of new services across our business sectors.  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.  

"In addition, we saw momentum in the take-up of our XpressLink service which is beginning to capture new market share and leads us to feel increasingly confident about the launch of Global Xpress.  In view of these developments we have decided for 2013 to increase our 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.  Overall, the third quarter continues to demonstrate improved and more stable revenues from our core wholesale operations and positions us well, despite the challenging macro-economic environment, to deliver revenues over this year and next within our current target."

Inmarsat plc

                                                Three months ended     
                                                   30 September      Increase/
    (US$ in millions)                             2012      2011    (decrease)

    Inmarsat Global - MSS revenue                186.7     180.7         3.3%
    Inmarsat Global - Other Income
    (including LightSquared)                      11.7      64.5      (81.9%)
    Inmarsat Solutions                           205.9     197.4         4.3%
                                                 404.3     442.6       (8.7%)
    Intercompany eliminations and
    adjustments                                  (78.4)    (78.5)
    Total revenue                                325.9     364.1      (10.5%)

Inmarsat Global

                                            Three months ended             
                                                30 September        Increase/
    (US$ in millions)                          2012      2011      (decrease)

    Maritime voice services                    19.6      21.6        (9.3%)
    Maritime data services                     85.4      68.0        25.6%
    Total maritime sector                     105.0      89.6        17.2%
    Land mobile voice services                  3.7       2.2        68.2%
    Land mobile data services                  30.6      34.8       (12.1%)
    Total land mobile sector                   34.3      37.0        (7.3%)
    Aviation sector                            24.3      26.6        (8.6%)
    Leasing                                    23.1      27.5       (16.0%)
    Total MSS revenue                         186.7     180.7         3.3%
    Other income (including LightSquared)      11.7      64.5       (81.9%)
    Total revenue                             198.4     245.2       (19.1%)

Growth in maritime data revenue resulted primarily from the impact of pricing initiatives implemented in the first half of 2012.  During the third quarter we added 2,128 FleetBroadband terminals and ended the quarter with an installed base of over 32,000 active FleetBroadband terminals.  On-going decline in maritime voice revenue is due to a structural shift to data services through increasing email substitution and take up of VOIP applications, offset to a limited extent by organic voice growth opportunities from crew services and smaller vessels.  

On-going customer migration to FleetBroadband from our older maritime services will have a continuing negative impact on our rate of revenue growth in the maritime sector because the cost of service is typically lower than for the services being replaced.  Generally, we expect this impact to be offset by on-going usage increases and net new subscriber growth.  

During the quarter, take up of XpressLink, our hybrid L and Ku-band maritime service, was also encouraging and a number of new contracts were signed and will begin installation over the coming months.  At the end of the quarter we had an installed base of 1,150 ships using our VSAT service, including more than 250 ships using XpressLink.

In our land mobile sector, the year-over-year decline in revenue for data services is due to reduced revenue from government users in Afghanistan and other material event-related revenues recorded the third quarter 2011.  We estimate that Afghanistan and events in North Africa in the third quarter of 2011 contributed $8.1m more revenue year-over-year, compared to the third quarter 2012.  While revenue from North Africa has now largely normalised, our annualised land mobile revenue from Afghanistan remains material and is expected to decline further and therefore impact performance in future periods.  Underlying growth in BGAN revenues excluding Afghanistan and other events was positive with growth in active terminals coupled with steady ARPUs.  

Our IsatPhone Pro service was the main driver behind strong growth in land voice revenue.  During the third quarter we recorded over 6,000 net subscriber additions and we ended the quarter with a total base of over 71,000 active IsatPhone Pro terminals.

Aviation revenue for the third quarter was down year-over-year when compared to an unusually strong third quarter in 2011 and was driven by lower Swift 64 revenue mainly due to lower military and government usage in the quarter.  SwiftBroadband continued to see strong take-up and revenue growth.  The third quarter of 2012 was a record for SwiftBroadband additions, many of which are being installed to support in-flight passenger services.  The take-up of SwiftBroadband continues to expand our customer base and reduces our dependence on government aviation business.

Leasing was in line with expectations for the third quarter. The decline in Other Income relates primarily to the reduced revenue contribution from our Cooperation Agreement with LightSquared and this was also the primary cause of the overall fall in Inmarsat Global revenue for the third quarter.  

Inmarsat Solutions

                                      Three months ended                                                          
                                          30 September     Increase/
    (US$ in millions)                    2012      2011   (decrease)

    Inmarsat MSS                        104.1     107.4      (3.1%)
    Broadband and Other MSS             101.8      90.0      13.1%
    Total revenue                       205.9     197.4       4.3%

Lower Inmarsat MSS revenue at the Inmarsat Solutions level was driven primarily by lower revenue from Afghanistan and lower event-related revenue year-over-year.  Growth in Broadband and Other MSS was primarily due to increased revenue from our US Government business unit in relation to managed network services and equipment sales.  


At 30 September 2012, the Inmarsat plc 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.  We remain fully funded as to all our capital needs for the foreseeable future.  

Our Financial Reports

Inmarsat Group Limited, our wholly-owned subsidiary, today reported unaudited consolidated financial results for the three months ended 30 September 2012.  A copy of the full financial report for Inmarsat Group Limited can be accessed via the investor relations section of our website.

Other Information

Inmarsat management will discuss the results announced today and other financial and business information in a conference call on Monday, 5 November at 2:00pm London time, (United States 9:00am EST).  To access the call please dial +44(0)1452-555566.  The conference id for the call is 53479787.  The call will be recorded and available for one week after the event.  To access the recording please dial +44(0)1452-550000 and enter the access number 53479787.  The call will also be available via a webcast, to access the webcast please go to http://www.inmarsat.com/webcast.

Forward-looking Statements

Certain statements in this announcement constitute "forward-looking statements".  These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include: general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance or programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel.  You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement.  We undertake no obligation to update or revise any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...