Inmarsat plc (LSE: ISAT) reported its interim results for the quarter ended 30 September 2009, which underlined continuing growth for the Mobile Satellite Services (MSS) provider. During the period Inmarsat achieved a substantial improvement in both revenues and profitability, with after tax profits rising 33% compared with 2008.
Inmarsat provides global mobile satellite communications, to carry voice and high-speed data services to almost anywhere on the planet. The group has three distinct application divisions land, sea and in the air.
The company has three principle product platforms. The Broadband Global Area Network (BGAN) offers a global voice and high-speed data connectivity to land-based customers, through laptop-sized terminals, while the FleetBroadband and SwiftBroadband platforms deliver this capability to maritime and aeronautical customers.
During the period Inmarsat recorded an 8.7% increase in revenue compared with the same quarter last year, while earnings before tax improved by 18.4%. Subsequently profit after tax was substantially higher, rising 33% to US$50.2m. The FTSE100 constituent also improved its cash position significantly and free cash flow is now 90% higher than last year at $102.9m.
From an operations perspective, all of Inmarsat’s divisions appear to have performed well. Aeronautical revenues grew by 10.1%, driven by sales of ‘SwiftBroadband terminals’ which were particularly strong in the quarter.
SwiftBroadband continues to see orders related to the introduction of in-flight cellular services on commercial airlines. During the period, British Airways (LSE: BAY) adopted the SwiftBroadband service for its flights between London and New York.
Maritime revenues grew by 9.2%, principally driven by data services as the group experienced strong demand for its Fleet and FleetBroadband services. Land mobile revenue rose 4% - a stronger performance when compared sequentially to the second quarter.
"These third quarter results show that we are continuing to achieve growth in all our MSS markets despite the economic downturn ... we are seeing the benefits of improved terms with our distributors, following the implementation of new agreements in April 2009,” Inmarsat Chairman and CEO Andrew Sukawaty, commented. “We are well positioned to deliver on our targets for the full year."