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Telecoms

Inmarsat maintains full-year guidance despite "challenging" markets

Second quarter earnings for the satellites operator fell despite a rise in revenues

Satellite services provider Inmarsat PLC (LON:ISAT) kept its full-year guidance unchanged after a tough second quarter.

Underlying earnings (EBITDA) fell 3.6% to US$195.0mln from US$202.2mln the year before, despite a 7.7% increase in revenue to US$356.0mln from US$330.4mln the previous year.

Reported profit before tax slumped to US$61.2mln from US$95.9mln, in part because of a US$13.9mln non-cash charge relating to convertible bonds.

READ: Inmarsat unit chosen to provide satellite communications for US FirstNet emergency network

The company upped its interim dividend by 5% to 21.62 US cents from 20.59 US cents previously.

The company said it remained confident about the medium-to-long-term outlook but the short-term picture is a bit cloudier for the satellites launcher.

“Our markets remain challenging and the outlook continues to be difficult to predict. Inmarsat's performance in 2017 and 2018 will continue to be particularly determined by our results in the IFC [in-flight connectivity] market and in the government sector, as we outlined at our 2016 preliminary results in March 2017,” the company said.

Shares in Inmarsat fell 3.2% in the first hour of trading.

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