10th Nov 2008 07:00
Inmarsat Holdings Limited Reports Third Quarter 2008 Results
London, UK: 10 November 2008. 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 30 September 2008.
Q3 2008 Highlights
Revenue up 16.4% to $162.5m (2007: $139.6m)
EBITDA up 15.4% to $112.3m (2007: $97.3m)
Profit after tax up 58.6% to $37.6m (2007: $23.7m)
Strong growth across all business sectors
BGAN revenue $20.9m up 6.6% sequentially on Q2 2008
Successful launch and deployment of third Inmarsat-4 satellite
Andrew Sukawaty, Inmarsat's Chairman and Chief Executive Officer said, "Our business continues to generate strong revenue and cash flow growth across all of our market sectors. We have seen no impact of global economic weakness in the usage and take up of our services and we are firmly on track to deliver revenue growth for the full year well ahead of the top of our target range. With the successful launch of our third Inmarsat-4 satellite, which provides global coverage for our broadband platform, we are ideally positioned to meet the expanding needs of our customers and capture further growth."
Mobile Satellite Services
During the third quarter our maritime sector revenue saw growth of 6.7% across voice and data services. Total maritime active terminals grew by 4.1%, while demand for our Fleet and new FleetBroadband services remained strong with 35.9% growth in active terminals. During the quarter, we announced that we had reached our first 1,000 active FleetBroadband terminals and confirmed that A.P. Moller Maersk had contracted with our service provider Marlink, to begin a retrofit of its fleet with FleetBroadband. We believe FleetBroadband is gaining industry acceptance and that take up will be further enhanced by the global coverage added by the third Inmarsat-4 satellite.
On 23 September 2008, we announced the expansion of the FleetBroadband family to offer an entry-level, globally deployable, combined voice and data service to target and expand the addressable market of small vessels. The new service, FleetBroadband 150, will deliver voice, IP data up to 150kbps and SMS, and is planned to be available by mid-2009.
Third quarter land mobile sector revenue was up 17.3% with growth in land data of 21.9%. Active land terminals grew by 2.2%, including 4,295 new BGAN subscribers added during the third quarter. Growth in land data was mainly due to strong take up and usage of BGAN services as well as from increased BGAN demand resulting from world events.
Our third quarter aeronautical sector revenue grew by 54.3%. Aeronautical growth continues to be driven by strong usage and take up of our Swift 64 service from government and business jet customers. We continue to add Swift 64 terminals at a consistent rate and we are seeing an acceleration in the early take up of our SwiftBroadband service. Airline trials of in-flight passenger connectivity services are continuing, although it remains too early for there to be any material contribution to revenue growth.
Our third quarter leasing revenue was up 21.9% year over year, reflecting the on going benefit of new leases signed early in the year together with a high level of lease renewals.
Liquidity
At 30 September 2008, Inmarsat Holdings Limited had net borrowings of $960.9m, incorporating borrowings of $1,003.7m and cash of $42.8m. Inmarsat Holdings also had a revolving credit facility with an amount available but undrawn at the end of the quarter of $200.0m. Net borrowings reported by Inmarsat Holdings Limited exclude the net borrowings of Inmarsat plc and CIP UK Holdings Limited and its subsidiaries, including Stratos Global Corporation.
Volvo Ocean Race
On the 11 October 2008, crews on board eight yachts set off to compete in the round-the-world yacht race and viewers around the globe will be able to follow the spectacle over more than 37,000 nautical miles thanks to our FleetBroadband service. Inmarsat and its partners, Stratos Global Corporation and Thrane & Thrane, are sponsoring the world-famous event, providing equipment and high-speed connectivity for all the yachting teams competing in this year's race. FleetBroadband will take media coverage of the race to a new level, supporting HDTV broadcasts and enabling live video and radio interviews, as well as rapid delivery of photos, emails and blogs.
Inmarsat plc
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 $310.4m of 7.625% Senior Notes due 2012. Both Inmarsat Holdings Limited and Inmarsat Group Limited are required by the terms of the notes outstanding to report quarterly financial results. Inmarsat plc is the ultimate parent company of the Inmarsat group.
A copy of the financial reports for both Inmarsat Holdings Limited and Inmarsat Group Limited for the third quarter can be accessed via the investor relations section of our website. Copies of these financial reports will also be filed with the SEC later today on form 6-K.
Other Information
Inmarsat management will host a conference call on Monday, 10 November at 2:00pm London time (United States 9:00am EST). To access the call, please dial +44 (0)20 7162 0025 and enter the access code 814630. A recording of the call will be available for one week after the event. To access the recording please dial +44 (0)20 7031 4064 and enter the access code 814630. The call will also be available by webcast accessible via the investor relations section of our website.
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Inmarsat Holdings Limited Revenue Breakdown |
Third quarter ended 30 September |
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|
2008 |
2007 |
|
|
(US$ in millions) |
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|
Revenues |
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|
Maritime sector: |
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|
voice services |
25.7 |
24.5 |
|
data services |
55.9 |
52.0 |
|
Total maritime sector |
81.6 |
76.5 |
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Land mobile sector: |
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|
voice services |
2.8 |
3.5 |
|
data services |
34.5 |
28.3 |
|
Total land mobile sector |
37.3 |
31.8 |
|
Aeronautical sector |
17.9 |
11.6 |
|
Leasing |
20.6 |
16.9 |
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Total mobile satellite communications services |
157.4 |
136.8 |
|
Other income |
5.1 |
2.8 |
|
Total Revenues |
162.5 |
139.6 |
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Active Terminal Data |
As at 30 September |
|
|
2008 |
2007 |
|
|
Active terminals (1)
|
(000's) |
|
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Maritime |
151.4 |
145.4 |
|
Land mobile |
80.4 |
78.7 |
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Aeronautical |
9.8 |
8.5 |
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Total active terminals |
241.6 |
232.6 |
(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 30 September. Active ACeS handheld terminals are the average number of terminals active on a daily basis during the period.
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Inmarsat Holdings Limited Consolidated Profit and Loss Account |
Third quarter ended 30 September |
|
|
2008 |
2007 |
|
|
(US$ in millions) |
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Revenue |
162.5 |
139.6 |
|
Employee benefit costs |
(28.8) |
(21.3) |
|
Network and satellite operations costs |
(9.9) |
(8.3) |
|
Other operating costs |
(17.6) |
(17.4) |
|
Work performed by the Group and capitalized |
6.1 |
4.7 |
|
EBITDA |
112.3 |
97.3 |
|
Depreciation and amortization |
(42.0) |
(42.0) |
|
Operating profit |
70.3 |
55.3 |
|
Interest receivable and similar income |
4.6 |
1.7 |
|
Interest payable and similar charges |
(21.4) |
(23.4) |
|
Net interest payable |
(16.8) |
(21.7) |
|
Profit before income tax |
53.5 |
33.6 |
|
Income tax expense |
(15.9) |
(9.9) |
|
Profit for the period |
37.6 |
23.7 |
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Inmarsat Holdings Limited Consolidated Balance Sheet |
As at 30 September |
As at 31 December |
|
2008 |
2007 |
|
|
(US$ in millions) |
||
|
Non-current assets |
1,816.6 |
1,785.9 |
|
Current assets |
||
|
Inventories |
4.7 |
4.9 |
|
Trade and other receivables |
207.8 |
188.2 |
|
Cash and cash equivalents |
42.8 |
31.7 |
|
Total current assets |
255.3 |
224.8 |
|
Total assets |
2,071.9 |
2,010.7 |
|
Current liabilities |
||
|
Loans and other borrowings |
(135.9) |
(82.2) |
|
Other payables and provisions |
(252.8) |
(145.9) |
|
Non-current liabilities |
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|
Loans and other borrowings |
(854.6) |
(906.4) |
|
Other payables and provisions |
(207.4) |
(189.1) |
|
Total liabilities |
(1,450.7) |
(1,323.6) |
|
Net assets and shareholders' funds |
621.2 |
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 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: Media Enquiries:
Simon Ailes, +44 20 7728 1518 Christopher McLaughlin, +44 20 7728 1015
[email protected] [email protected]
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