Inmarsat PLC (LON:ISAT) shares rose nearly 10% higher on Wednesday after the satellites communications provider reiterated “all elements” of its future guidance as it reported a rise in first-quarter revenue.
The FTSE 250-listed firm saw its quarterly revenue rise by 4.8% to US$345.4mln, up from US$329.5mln a year earlier, though its underlying earnings (EBITDA) fell by 4.5% to US$174.9mln from US$183.1mln.
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The group said in a statement that the EBITDA fall reflected changes in revenue mix, particularly in the Government area, and an adverse impact of currency movements on indirect costs of US$9.1mln.
Within divisions, Inmarsat said its Maritime revenue rose by 1.6%, Aviation climbed 39% and Enterprise rose 11.2%, though Government fell by 9.0%,
Inmarsat said it remains confident for its growth outlook and reiterated "all elements of our future guidance", including the expectation that revenue in 2018 - excluding Ligado - will be between US$1.30bn to US$1.50bn.
Inmarsat’s chief executive, Rupert Pearce commented: "Given our track record, unique capabilities, differentiated market position and strong channels to market, we are increasingly well placed to deliver further annual revenue growth across all of our target Maritime, Government, Aviation and Enterprise markets.”
In lunchtime trading, Inmarsat shares topped the mid-cap gainers, up 9.7% at 396.9p.