Inmarsat plc, the world leader in global mobile satellite communications, today announces unaudited financial results for the three months ended 31 March 2019.
Summary and Financial Highlights
Inmarsat delivered further revenue growth in the period, building on the positive momentum achieved during 2018. This was driven by the success of our diversified growth portfolio in a focussed set of core end markets, where we lead with sustainable differentiation.
· Group revenue increased by $1.5m, or 0.4% to $346.9m. Excluding Ligado, Group revenue increased by $33.4m, or 10.7% to $346.7m, mainly reflecting strong growth in Government and Aviation:
- Maritime: continued double-digit revenue growth in the fast-growing VSAT segment. Challenges remain in the mid-market but actions taken now favourably impacting vessel losses
- Government: further customer take-up of key products in both our US and Global Government businesses
- Aviation: material increase in In-Flight Connectivity ("IFC") revenues, driven by substantial equipment sales and continued growth in GX airtime revenues. Continued revenue growth from Core business
- Enterprise: continued decline of products in legacy markets
- GX-generated revenues: increased by 71.4% to $85.7m (Q1 2018: $50.0m)
- Ligado: revenues of $0.2m (Q1 2018: $32.1m), as expected
· EBITDA decreased by $22.5m, or 12.9%, to $152.4m. EBITDA (excluding Ligado and costs relating to recommended offer for the Group) increased by $26.6m, or 18.7%, to $169.4m, reflecting revenue growth
· Profit After Tax declined by $326.0m, mainly reflecting a change in the unrealised conversion liability on the 2023 Convertible Bond of $297.9m, as well as costs relating to recommended offer for the Group of $17.0m
· Free Cash Flow of $96.2m (Q1 2018: $13.2m outflow) driven by improved working capital and reduced levels of capital expenditure