7th Mar 2019 09:20
LONDON (Alliance News) - Inmarsat PLC on Thursday reported good annual revenue growth on the back of a strong performance by its Aviation division, but annual profit dropped on the prior year.
For 2018, the mobile satellite communication services provider posted pretax profit of USD167.9 million, down 28% from USD233.8 million.
Revenue meanwhile rose 5.8% to USD1.47 billion from USD1.39 billion, with the fourth quarter contributing USD378.7 million to the 2018 result.
The reduction in profitability was mainly caused by a series of impairment charges, of which USD18.1 million were on financial assets and USD14.5 million on fixed and intangible assets.
"In 2018, Inmarsat delivered good growth in revenue and earnings before interest, taxes, depreciation and amortisation, with year-on-year increases of 5.3% and 4.2% respectively and consistent quarter-on-quarter improvement," the company said.
It added: "This result, building on the return to growth established in 2017, was driven by the strength of our global GX broadband offering, particularly in Aviation, Government and Maritime, and by lower indirect costs. Aviation revenues grew by over 40%, within which In-Flight Connectivity revenues more than doubled."
Inmarsat proposed a 2018 final dividend of 12 US cents per share, in line with the 2017 final payout.
Looking ahead, the company said it remains confident about its future prospects and outlook.
It reiterated its mid-single digit percentage revenue growth over the five year period, 2018 to 2022 and its cash capex guidance of USD500 million to USD600 million per year in 2019 and 2020.
Inmarsat shares were trading up 2.7% at 409.90 pence each.
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