8th May 2008 07:00
Inmarsat PLC08 May 2008 Inmarsat Holdings Limited Reports First Quarter 2008 Results London, UK: 8 May 2008. Inmarsat Holdings Limited, a wholly-owned subsidiary ofInmarsat plc (LSE: ISAT), the leading provider of global mobile satellitecommunications services, today reported unaudited consolidated financial resultsfor the 3 months ended 31 March 2008. Q1 2008 Highlights • Revenue up 5.0% to $147.9m (2007: $140.8m) • EBITDA up 4.0% to $103.6m (2007: $99.6m) • Profit after tax up 8.6% to $28.9m (2007: $26.6m) • BGAN revenue $13.8m up 22.1% sequentially on Q4 2007 • BGAN subscribers reach 18,509 (2,692 additions in Q1) • FleetBroadband trials receive strong positive feedback Andrew Sukawaty, Inmarsat's Chairman and Chief Executive Officer said, "We havemade a solid start to the year and the growth trends in our core markets weresustained throughout the quarter. With our operating costs under firm control,we are well on track to meet our revenue and cash flow growth objectives for theyear. Although we do not yet have a new date for the launch of our thirdInmarsat-4 satellite, we remain confident that a prolonged delay is unlikely." Mobile Satellite Services During the first quarter our maritime sector revenue continued to benefit fromsustained demand for our data services and stability in demand for voiceservices. Maritime sector revenue grew 7.8% year over year, combining 11.6%growth in maritime data and 0.4% growth in maritime voice services. Growth inour base of active maritime terminals was 2.9%, while growth in our base ofactive Fleet terminals was up 37% year over year. Demand for Fleet terminals wasstrong throughout the quarter and consistent with prior quarters. Furthermore,initial feedback from ship operator evaluations of our recently introducedFleetBroadband service has been strongly positive. First quarter land mobile sector revenue was down 3.4%. Land data revenue wasflat year over year, reflecting a slower than usual recovery of normal businessactivity following the end of year holiday period. Land data revenues recoveredstrongly in the month of February and were in line with expectations duringMarch. BGAN sales and average revenue per subscriber remained strong throughoutthe quarter. Land voice revenue declined 28.2%, primarily due to the loss ofMini M users and particularly in areas where our handheld IsatPhone is not yetavailable. The base of active terminals in the land mobile sector was impactedby lower numbers of Mini M and R-BGAN terminals, partially offset by increasedBGAN terminals. Growth in our aeronautical sector during the first quarter was 25.7%. Demand fornew installations of our Swift 64 service was maintained in line with recentquarters and usage levels continued to be robust. SwiftBroadband continues togenerate significant interest among our government and business jet customers,as well as with airlines moving to trial in-flight mobile services. Our first quarter leasing revenue was down 2.3% year over year. A number ofcontract additions late in the first quarter helped improve leasing revenuefollowing reduced business from a key customer in the prior quarter. Liquidity At 31 March 2008, Inmarsat Holdings Limited had net external debt of $938.7m,incorporating external debt of $942.6m and cash of $3.9m. Inmarsat Holdings alsohad a revolving credit facility with an amount available but undrawn at the endof the quarter of $200.0m. Net borrowings reported by Inmarsat Holdings Limitedexclude the net borrowings of Inmarsat plc and CIP UK Holdings Limited and itssubsidiaries, including Stratos Global Corporation. Inmarsat plc Inmarsat Holdings Limited, through its subsidiary Inmarsat Finance II plc, isthe issuer of $450.0m of 10.375% Senior Discount Notes due 2012. Inmarsat GroupLimited, through its subsidiary Inmarsat Finance plc, is the issuer of $310.4mof 7.625% Senior Notes due 2012. Both Inmarsat Holdings Limited and InmarsatGroup Limited are required by the terms of the notes outstanding to reportquarterly financial results. Inmarsat plc is the ultimate parent company of theInmarsat group. A copy of the financial reports for both Inmarsat Holdings Limited and InmarsatGroup Limited for the first quarter can be accessed via the investor relationssection of our website. Copies of these financial reports will also be filedwith the SEC later today on form 6-K. Other Information Inmarsat management will host a conference call on Thursday, 8 May at 3:00pmLondon time (United States 10:00am EST). To access the call, please dial +44(0)20 7162 0025 and enter the access code 794450. A recording of the call willbe available for one week after the event. To access the recording please dial+44 (0)20 7031 4064 and enter the access code 794450. The call will also beavailable by webcast accessible via the investor relations section of ourwebsite. Inmarsat Holdings Limited First quarter ended Revenue Breakdown 31 March 2008 2007 -------------------- (US$ in millions) Revenues Maritime sector: voice services 26.4 26.3 data services 57.8 51.8 ----------------- Total maritime sector 84.2 78.1 Land mobile sector: voice services 2.8 3.9 data services 28.4 28.4 ----------------- Total land mobile sector 31.2 32.3 Aeronautical sector 12.7 10.1 Leasing 17.1 17.5 ----------------- Total mobile satellite communications services 145.2 138.0 Other income 2.7 2.8 ----------------- Total Revenues 147.9 140.8 ================= Active Terminal Data As at 31 March 2008 2007 ----------------- Active terminals (1) (000's) Maritime 145.3 141.2 Land mobile 75.4 80.6 Aeronautical 9.2 8.1 ----------------- Total active terminals 229.9 229.9 ================== (1) Active terminals are the number of subscribers (BGAN and R-BGAN andSPS) or terminals that have been used to access commercial services (except ACeShandheld terminals) at any time during the preceding twelve-month period andregistered at 31 March. Active ACeS handheld terminals are the average number ofterminals active on a daily basis during the period. Inmarsat Holdings Limited First quarter ended Consolidated Profit and Loss Account 31 March 2008 2007 ------------------ (US$ in millions) Revenue 147.9 140.8 Employee benefit costs (25.8) (22.7) Network and satellite operations costs ( 8.9) (8.4) Other operating costs (14.8) (14.1) Work performed by the Group and capitalized 5.2 4.0 ------------------ EBITDA 103.6 99.6 Depreciation and amortization (41.8) (41.3) ------------------ Operating profit 61.8 58.3 Interest receivable and similar income 0.5 0.9 Interest payable and similar charges (21.4) (20.9) ------------------ Net interest payable (20.9) (20.0) ------------------ Profit before income tax 40.9 38.3 Income tax expense (12.0) (11.7) ------------------ Profit for the period 28.9 26.6 ================== Inmarsat Holdings Limited As at As at Consolidated Balance Sheet 31 March 31 December 2008 2007 --------------------- (US$ in millions) Non-current assets 1,798.4 1,785.9 Current assets Inventories 6.1 4.9 Trade and other receivables 229.3 188.2 Cash and cash equivalents 3.9 31.7 ------------------- Total current assets 239.3 224.8 ------------------- Total assets 2,037.7 2,010.7 ------------------- Current liabilities Loans and other borrowings (118.5) (82.2) Other payables and provisions (146.5) (145.9) Non-current liabilities Loans and other borrowings (860.3) (906.4) Other payables and provisions (199.9) (189.1) --------------------- Total liabilities (1,325.2) (1,323.6) --------------------- Net assets and shareholders' funds 712.5 687.1 ==================== 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 factorsthat may cause our actual results, performance or achievements, or industryresults, to be materially different from those projected in the forward-lookingstatements. These factors include: general economic and business conditions;changes in technology; timing or delay in signing, commencement, implementationand performance of programmes, or the delivery of products or services underthem; structural change in the satellite industry; relationships with customers;competition; and ability to attract personnel. You are cautioned not to rely onthese forward-looking statements, which speak only as of the date of thisannouncement. We undertake no obligation to update or revise any forward-lookingstatement 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 [email protected] Media Enquiries:Christopher McLaughlin, +44 20 7728 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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