Inmarsat Plc (LON:ISAT) told investors it returned to growth in the second quarter, and that it had “more than compensated” for a softer start to the year.
Second quarter revenue was up US$19mln, or 6.1%, compared to the same period last year and amounted to US$330mln - with the Aviation and Ligado Networks businesses driving the improvement.
Earnings rose US$36.3mln, 21.9%, to US$202.2mln versus US$165.9mln in the same quarter last year, while at US$76.8mln profit after tax was up 41.7%.
The half year comparatives reveal a US$12.8mln, 2.1%, rise in revenue to US$629mln and a 7.5% increase in earnings to US$368.4mln.
Chief executive Rupert Pearce said the group’s markets continue to be challenging and highlighted that the outlook is “becoming much harder to call”. He noted that the macro economic environment is worsening, new satellite capacity is pushing prices down.
Pearce added that Inmarsat’s targeted aviation passenger connectivity market is still being established and the launch of the group’s GX – its ‘Global Xpress’ broadband - products is ongoing.
"We continue to compete aggressively and successfully in all of our core markets and to make solid progress with our long term GX and Aviation growth agendas,” he said.
In separate statements the satellite communications group evidently underlined its progress bringing in new business.
One statement revealed that marine focussed communications firm Navarino has committed more than 1,200 vessels to Inmarsat’s naval offering under the GX service. The signups are to be phased over a six year period.
Another statement details a new contract award for US Navy satellite services.
Inmarsat also told investors that it is increasing its interim dividend to 20.59 cents per share.