6th Aug 2015 06:40
LONDON (Alliance News) - Satellite communications company Inmarsat PLC on Thursday said its pretax profit declined in the first half of 2015 following a sluggish second quarter, which was hit by delays to the launch of its third Global Xpress satellite and to the launch of its GX global commercial service.
The FTSE 100-listed company said its pretax profit was USD165.9 million in the first half, down from USD168.3 million a year before, as revenue fell to USD616.2 million from USD652.3 million.
The results were dragged lower by a weak performance in the second half, when revenue fell in its maritime arm, its largest division, and its saw continued weakness in its government division due to reduced spending budgets. Aviation and enterprise revenue were both higher, but these divisions contribute significantly less of Inmarsat's revenue mix.
The second quarter was hit by the delays to the launch of its I-5 F3 satellite, which is set to launch at the end of August, while the group is targeting the introduction of its delayed GX global commercial service by the end of the year.
Inmarsat did sweeten the message for investors, however, with a 5% hike to its interim dividend to 19.61 US cents from 18.68 cents a year earlier.
"The return to flight of the Proton launch vehicle after a three-month suspension is welcome news. A successful launch of I-5 F3 in late August will enable us to introduce global GX commercial services by the end of this year, providing a major catalyst for a step-change in revenue and EBITDA growth in 2016," said Rupert Pearce, Inmarsat's chief executive.
The group said it does not expect any material change in its trading conditions in the second half.
By Sam Unsted; [email protected]; @SamUAtAlliance
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