8th May 2009 07:00
Inmarsat Holdings Limited Reports First Quarter 2009 Results
London, UK: 8 May 2009. 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 $310.4m of 7.625% Senior Notes due 2012. Both Inmarsat Holdings Limited and Inmarsat Group Limited are required by the terms of the notes outstanding to report quarterly financial results. Inmarsat plc is the ultimate parent company of the Inmarsat group. On 15 April 2009 Stratos Global Corporation ("Stratos") became an indirect wholly-owned subsidiary of Inmarsat plc.
A copy of the financial reports for both Inmarsat Holdings Limited and Inmarsat Group Limited for the first quarter can be accessed via the investor relations section of our website. Copies of these financial reports will also be filed with the SEC later today on form 6-K. On 7 May 2009 Stratos announced results for the first quarter ended 31 March 2009 and these results can be accessed via the Inmarsat or Stratos websites.
Other Information
Inmarsat management will host a conference call on Friday, 8 May at 2:00pm London time (United States 9:00am EST). To access the call, please dial +44 (0)20 7162 0025 and enter the access code 833174. A recording of the call will be available for one week after the event. To access the recording please dial +44 (0)20 7031 4064 and enter the access code 833174. The call will also be available by webcast accessible via the investor relations section of our website.
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Inmarsat Holdings Limited Revenue Breakdown |
First quarter ended 31 March |
||
|
|
2009 |
2008 |
% Difference |
|
Revenues |
(US$ 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 Account |
First quarter ended 31 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 Consolidated Balance Sheet |
As at 31 March |
As at 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.
Contact:
Inmarsat, London, UK
Investor Enquiries:
Simon Ailes, +44 20 7728 1518
Media Enquiries:
John Warehand, +44 20 7728 1579
Stratos Announces First-Quarter 2009 Results
BETHESDA, MD (May 7, 2009) - Stratos Global Corporation, the world's trusted leader in delivering vital voice, data and IP communication services today announced financial results for the first quarter ended March 31, 2009.
Financial Highlights
(in millions of U.S. dollars, except per share amounts)
|
First quarter ended March 31
|
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|
|
2009 |
2008 |
|
Revenue |
$ 156.6 |
$ 147.5 |
|
EBITDA* |
$ 27.8 |
$ 23.9 |
|
Net earnings |
$ 4.5 |
$ 0.7 |
|
Basic and diluted earnings per share |
$ 0.11 |
$ 0.02 |
* EBITDA (a non-GAAP measure) is defined by the Corporation as earnings before interest expense, income taxes, other costs (income), management long-term incentive expense, depreciation and amortization, non-controlling interest and equity in earnings of investee.
The unaudited interim consolidated financial statements and management's discussion and analysis of financial condition and results of operation are available on SEDAR, www.sedar.com and the Corporation's website, www.stratosglobal.com
For the first quarter ended March 31, 2009, the Corporation achieved revenue of US$156.6 million, a 6 percent increase compared with US$147.5 million in the same period in 2008. This increase resulted primarily from increased Inmarsat leasing revenue and sales of mobile terminals and equipment. EBITDA for the first quarter of 2009 increased by 16 percent to US$27.8 million compared with US$23.9 million for the first quarter of 2008. The significant improvement in EBITDA was primarily driven by the increased revenue and cost of sales reductions resulting from increased volume discounts. Net earnings for the first quarter of 2009 were US$4.5 million, or US$0.11 per share, compared with US$0.7 million, or US$0.02 per share during the same period in 2008.
Cash flow from operations (including working capital changes) in the first quarter of 2009 totaled US$21.5 million, compared with US$5.0 million generated during the first quarter in 2008. The increase primarily reflects a decreased investment in working capital and higher EBITDA.
- more -
About Stratos
Stratos is the world's trusted leader for vital communications. Stratos offers the most powerful and extensive portfolio of remote communications solutions including mobile and fixed satellite and microwave services. More than 20,000 customers use Stratos products and industry-leading value added services to optimize communication performance. Stratos serves U.S. and international government, military, first responder, NGO, oil and gas, industrial, maritime, aeronautical, enterprise, and media users on seven continents and across the world's oceans. For more information visit www.stratosglobal.com
Caution Concerning Forward-Looking Statements
Documents related to this release contain statements and information about potential future circumstances and developments. Such statements and information are qualified by the inherent risks and uncertainties surrounding future expectations generally and may differ materially from Stratos Global Corporation's actual future results. For additional information with respect to these risks and uncertainties, reference should be made to the Corporation's continuous disclosure materials filed with the Canadian Securities Administrators. Stratos Global Corporation disclaims any intention or obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events, or otherwise.
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