Inmarsat Holdings Limited Reports First Quarter 2009 Results
By Prne, Gaea News NetworkThursday, May 7, 2009
LONDON - Inmarsat Holdings Limited, a wholly-owned subsidiary of Inmarsat plc (LSE: ISAT), the leading provider of global mobile satellite communications services, today reported unaudited consolidated financial results for the 3 months ended 31 March 2009.
Highlights
- Revenue up 10.5% to $163.4m (2008: $147.9m) - EBITDA up 13.2% to $117.3m (2008: $103.6m) - Profit after tax up 35.3% to $39.1m (2008: $28.9m) - Global broadband coverage completed - Repositioning of Inmarsat-4 fleet completed - Acquisition of Stratos Global completed on 15 April - New distribution agreements signed
Andrew Sukawaty, Inmarsat’s Chairman and Chief Executive Officer said, “Our first quarter results deliver yet another quarter of strong growth and underline the resilience of our markets thus far to the wider economic climate. In particular, we have been able to sustain growth in maritime revenues despite the challenges facing the global shipping industry. With these factors in mind, we remain confident in our revenue growth objectives for the full year.
In addition, our cost control and significantly reduced capital expenditure needs meant that free cash flow for the quarter improved by over $50m compared to the first quarter last year.
In April we announced that we had signed new distribution agreements with all our major partners and that Inmarsat plc had completed the acquisition of Stratos Global Corporation. We believe these events will support our revenue growth and increase the value of our business.”
Mobile Satellite Services
During the first quarter our maritime sector revenue saw growth of 2.3% across voice and data services. Maritime revenue in the first quarter was adversely impacted by higher volume discounts year over year, primarily as a result of a more even phasing of volume discounts expected for the full year. Adjusted for the impact of volume discounts, the underlying growth in the maritime sector was 7.7% for the first quarter. Total maritime active terminals grew by 11.5%, fuelled by demand for our Fleet and new FleetBroadband services, but also by demand for Inmarsat-C terminals. The number of active Fleet and FleetBroadband terminals was up 34% year over year.
First quarter land mobile sector revenue was up 10.6% with growth in land data of 13%. Reported active land terminals at the end of the first quarter were up 0.4%, but taking into account the impact of our discontinued R BGAN service, active land terminals were up 10% year over year. Growth in land data continues to be driven by strong take up and usage of our BGAN services.
Our first quarter aeronautical sector revenue grew by 32%. Aeronautical growth continues to be driven primarily by strong usage and take up of our Swift 64 service. Although still at an early stage, we continue to see encouraging demand for our SwiftBroadband service. During the quarter Ryanair launched an in-flight passenger connectivity service on 20 of its aircraft using our SwiftBroadband service.
Our first quarter leasing revenue was up 40% year over year, reflecting the on going benefit of incremental new leases signed in 2008 together with a consistently high level of lease renewals.
Liquidity
At 31 March 2009, Inmarsat Holdings Limited had net borrowings of $970.2m, incorporating borrowings of $1,058.1m and cash of $87.9m. Inmarsat Holdings Limited also had a revolving credit facility with an amount available but undrawn at the end of the quarter of $160.0m. Net borrowings reported by Inmarsat Holdings Limited exclude the net borrowings of Inmarsat plc and Stratos Global Corporation. The Inmarsat Holdings Limited group is generating significant free cash flow and considers its available liquidity to be comfortable for the group’s needs.
Results announced today
Inmarsat Holdings Limited, through its subsidiary Inmarsat Finance II plc, is the issuer of $450.0m of 10.375% Senior Discount Notes due 2012. Inmarsat Group Limited, through its subsidiary Inmarsat Finance plc, is the issuer of $310.4m of 7.625% Senior Notes due 2012. Both Inmarsat Holdings Limited and Inmarsat Group Limited are required by the terms of the notes outstanding to report quarterly financial results. Inmarsat plc is the ultimate parent company of the Inmarsat group. On 15 April 2009 Stratos Global Corporation (”Stratos”) became an indirect wholly-owned subsidiary of Inmarsat plc.
A copy of the financial reports for both Inmarsat Holdings Limited and Inmarsat Group Limited for the first quarter can be accessed via the investor relations section of our website. Copies of these financial reports will also be filed with the SEC later today on form 6-K. On 7 May 2009 Stratos announced results for the first quarter ended 31 March 2009 and these results can be accessed via the Inmarsat or Stratos websites.
Other Information
Inmarsat management will host a conference call on Friday, 8 May at 2:00pm London time (United States 9:00am EST). To access the call, please dial +44 (0)20 7162 0025 and enter the access code 833174. A recording of the call will be available for one week after the event. To access the recording please dial +44 (0)20 7031 4064 and enter the access code 833174. The call will also be available by webcast accessible via the investor relations section of our website.
Inmarsat Holdings Limited Revenue Breakdown First quarter ended 31 March 2009 2008 % Difference Revenues (US$ in millions) Maritime sector: voice services 26.2 26.4 (0.8%) data services 59.9 57.8 3.6% Total maritime sector 86.1 84.2 2.3% Land mobile sector: voice services 2.4 2.8 (14.3%) data services 32.1 28.4 13.0% Total land mobile sector 34.5 31.2 10.6% Aeronautical sector 16.8 12.7 32.3% Leasing 23.9 17.1 39.8% Total mobile satellite communications services 161.3 145.2 11.1% Other income 2.1 2.7 (22.2%) Total revenue 163.4 147.9 10.5%
Active Terminal Data First quarter ended 31 March 2009 2008 % Difference Active terminals (1) (000’s) Maritime 162.0 145.3 11.5% Land mobile 75.7 75.4 0.4% Aeronautical 10.3 9.2 12.0% Total active terminals 248.0 229.9 7.9%
(1) Active terminals are the number of subscribers or terminals that have been used to access commercial services (except ACeS handheld terminals) at any time during the preceding twelve-month period and registered at 31 March. Active ACeS handheld terminals are the average number of terminals active on a daily basis during the period.
Inmarsat Holdings Limited Consolidated Profit and Loss First quarter ended 31 Account March 2009 2008 % Difference (US$ in millions) Revenue 163.4 147.9 10.5% Employee benefit costs (25.4) (25.8) (1.6%) Network and satellite operations costs (9.8) (8.9) 10.1% Other operating costs (16.1) (14.8) 8.8% Work performed by the Group and capitalized 5.2 5.2 0.0% EBITDA 117.3 103.6 13.2% Depreciation and amortization (46.5) (41.8) 11.2% Operating profit 70.8 61.8 14.6% Interest receivable and similar income 0.8 0.5 60.0% Interest payable and similar charges (21.3) (21.4) (0.5%) Net interest payable (20.5) (20.9) (1.9%) Profit before income tax 50.3 40.9 23.0% Income tax expense (11.2) (12.0) (6.7%) Profit for the period 39.1 28.9 35.3%
Inmarsat Holdings Limited As at As at Consolidated Balance Sheet 31 March 31 December 2009 2008 (US$ in millions) Non-current assets 1,850.4 1,858.7 Current assets Inventories 3.6 5.0 Trade and other receivables 241.5 229.1 Cash and cash equivalents 87.9 51.2 Derivative financial instruments 1.3 1.1 Total current assets 334.3 286.4 Total assets 2,184.7 2,145.1 Current liabilities Loans and other borrowings (201.1) (205.9) Other payables and provisions (158.8) (169.6) Non-current liabilities Loans and other borrowings (845.5) (833.3) Other payables and provisions (75.2) (79.3) Total liabilities (1,280.6) (1,288.1) Net assets and shareholders’ funds 904.1 857.0
Forward-looking Statements
Certain statements in this announcement constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include: general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances.
Source: Inmarsat
Contact: Inmarsat, London, UK, Investor Enquiries:, Simon Ailes, +44-20-7728-1518, simon_ailes at inmarsat.com. Media Enquiries: John Warehand, +44-20-7728-1579, john_warehand at inmarsat.com
Tags: Inmarsat, London, United Kingdom