Q3: say goodbye to one of the best-in-class satellite operators

Inmarsat did not reconfirm its growth trend this quarter, on the back of the continuing client shift in Maritime, while Aviation suffered from a high comparison basis. The company is expecting its delisting to happen by the end of this year.

The sole growing satellite company

Inmarsat remains the sole company of our coverage enjoying top-line growth in the satellite business. The strategic focus of Inmarsat on the mobility business, i.e. its aviation segment, is mainly responsible for this success.

Sustained by aviation

Inmarsat’s results came in roughly in line with our expectations, keeping its ongoing trend of vessel migration in Maritime which weighed on its results, while Aviation enjoyed very positive momentum.

Bright long-term prospects

Key financial facts Q4 group revenue was up 7.6% to $378.7m and Q4 EBITDA grew by 14.6% to $190.6m FY revenues grew by 5.3% yoy to $1,465m (above consensus at $1.45bn) EBITDA was up 4.2% yoy to $770m (above consensus) FY18 profit after tax was $125m, down 32.4% yoy (below consensus, $148m) Outlook Inmarsat targets a mid single-digit percentage growth in revenues over the five-year period of 2018-22. FY19 revenues, excluding Ligado, should fall in the range of $1.3bn to $1.4bn, up 6%

Disappointing on the Maritime side, but bright perspectives from Aviation

Inmarsat published this morning its Q3 results. Group revenues (excluding Ligado) were up 3.9% yoy to $336.4m, driven by Aviation. This was in line with the consensus. The strong growth in Aviation (+34%) is, however, overshadowed by a disappointing decline in Maritime (-5.7%). EBITDA was up 7.9% yoy to $173.6m, with an EBITDA margin of 55.9% (vs. 54.3%. Q3 17), driven by a strong EBITDA performance in Aviation and lower Central Services costs. This came in largely above consensus which expect

A reassuring Q1 release but when will the stock stop falling?

Q1 revenue increased by 4.8% yoy (like in Q4), driven by growth in Aviation (+39%) and Enterprise (+11%), while the Government segment (-9% only) recorded lower contracted revenue from Boeing. EBITDA decreased, however, by only 4.5% yoy and was flat excluding the adverse impact of currency movements on indirect costs (it was still down by 17% yoy in Q4 due to a one-off US Government airtime contract in 2016). The lower margin reflects the changes in revenue mix, particularly in Government. The

Q4 17: Dividends halved, outlook confirmed

Inmarsat released a mixed set of results, marked by well-flagged tough comparatives in Government and the recovery of the Maritime division in Q4, the halving of dividends, and the confirmation of the 2018 revenue and leverage objectives.

Mixed set of Q3 results

Inmarsat released a rather reassuring set of Q3 results, marked by the stabilisation of the Maritime division although hampered by the unexpected return to negative sequential growth of FleetBroadband. Key highlights Revenue up 4.8%, to $358.3m (consensus*: $346.4m) Maritime stable yoy, at $142.7m ($140.8m) EBITDA down 6.5%, to $191.3m ($183.8m) Adjusted EPS of 12c down from 20c (11.8c) Net debt down $159.2m, at $1,952m Outlook broadly unchanged The main parts of management’s guidanc

H1 17: Choppy seas hide long-term upside

Inmarsat released a mixed set of Q2 results, marked by short-term headwinds in Maritime partly offsetting the strong growth in Aviation and Government. Key highlights Q2 revenue up 7.7%, at $356m (company consensus: $344.2m) Q2 EBITDA down 3.6%, to $195m ($198.8m) Q2 Maritime down 5%, to $139.3m ($142.7m) Interim dividend up 5%, to $0.2162 (cash or share) Guidance unchanged

Unsurprising set of Q1 results

Inmarsat released a set of Q1 results broadly in line with expectations and confirmed their guidance. Key highlights Revenue up 11.3% (+7.5% excluding Ligado), to $332.2m, 2.4% above consensus EBITDA up 9.2% (+1.8% excluding Ligado), to $181.5m, 3.9% above consensus Adjusted PAT up 14.5%, to $52.2m Net debt broadly unchanged at $1,919.4m

Stronger than expected Q4 results

Inmarsat released a mixed bag of full-year results, marked by a solid Q4, the lowering of the 2018 outlook and outstanding cash generation. Results For the full year: Revenue reach $1.33bn, in line with guidance but 2% above the consensus. EBITDA reached $795m, 4% above market expectations. Net income was $243m, in line with market expectations. The fourth quarter was strong, with a 7% increase in revenue and a 9.2% increase in EBITDA, driven by very strong growth in Government and Av

Strong set of Q3 results

Inmarsat released a good set of Q3 results. Results During the third quarter, total group revenue was up 5.8% at $341.9m. EBITDA was up 13.5% at $204.6m. Profit after tax was down 13.3% at $53.9m on the back of higher depreciation and one-off financial expenses. The performance was driven by the strong Government vertical which was up 9.8% and seems to be resisting well to the current trends in this market. The decline in Enterprise was much lower compared to H1, at -5.3% versus -8.6% during

Capital Markets Day update

Inmarsat had its capital markets day during which management provided an overview of the satcom market, with a quick analysis of supply, demand and technology. Management then made two complete presentations focusing on the Maritime and Aviation markets. No financial details were given as the company has already entered into its quiet period, preceding the 3 November Q3 results. All in all, no game-changing information was provided during the presentations and management confirmed its confide

Reassuring H1 16

Inmarsat released positive first half results. For the first half, revenue reached $629m, up 2.1% and slightly above the $626.5m of consensus. EBITDA reached $368.4m (58.6% margin, up 3 points yoy) while net profit was $122.4m, down by $9.2m due to increased depreciation caused by the GX constellation entry into full commercial service in 2015. For the second quarter, revenue reach $330.4m, up 6.1% and slightly above the $322.5m consensus. EBITDA reached $202.2m (61.2% margin, up 7.9 points yo

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