7th Nov 2013 08:04
LONDON (Alliance News) - Inmarsat PLC. (ISAT.L, IMASF.PK, IMASY.PK), a provider of global mobile satellite communications services, reported that its third-quarter total revenues declined to $306.9 million from last year's $325.9 million.
Rupert Pearce, Inmarsat's Chief Executive Officer, said, "The third quarter results continue to show that we are on target to achieve our objectives for the full year. Our MSS subscriber growth remains solid and we had a record quarter for our maritime XpressLink service, demonstrating the growing market interest and potential demand for GX.
With the first GX satellite launch now a matter of weeks away, the company said it is turning its attention to 2014 which will be a year of transition. While GX revenues will begin late in the year, due in part to a later than planned first launch, much of the cost necessary to support GX will come on line as planned. In addition, while the company has tightly controlled costs in 2013, it has added cost investment in L-band growth opportunities and this will continue.
In 2014, the company said that the operating cost investment will coincide with a very difficult outlook for its US government business, particularly in its Inmarsat Solutions business, which it now expects to be even more pronounced in 2014.
The timing of these factors will naturally combine to apply some downward pressure on operating profits during the year 2014, but it remains confident in the outlook for GX and it reiterates its target of 8%-12% compound annual MSS revenue growth over the 2014 to 2016 period.
The company stated that it is on track to complete global coverage for our GX network by the end of 2014. It expects the first Inmarsat-5 satellite to be launched in December 2013 and the two further launches to be completed in 2014. The ground infrastructure is already in place to support the first two satellites and it is on track to fully complete the ground network during the course of 2014.
Copyright RTT News/dpa-AFX
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