Inmarsat Returns to Growth

Inmarsat satellite
Image: Inmarsat

Reuters

LONDON, Aug 4 (Reuters) – British satellite operator Inmarsat reported a rise in revenue in the second quarter, more than reversing a dip in the first quarter, as its customers used its broadband terminals to improve efficiency in tough shipping and energy markets.

The company reported a 6 percent rise in second-quarter revenue to $330.4 million and a 22 percent rise in core earnings to $202.2 million on Thursday, and reiterated its target for full-year revenue.

“It a very solid performance, despite the market being quite challenging,” Chief Executive Rupert Pearce said in an interview on Thursday.

“Many of our markets are in recession, but ironically there’s some counter-cyclicality here because people are investing in communications to improve their efficiency and effectiveness, that’s certainly true in energy, it’s certainly true in maritime.”

Shares in Inmarsat, which have languished since it downgraded its full-year revenue forecast range by $50 million to $1.175-$1.250 billion in May, were trading up 1.6 percent at 793 pence by 0817 GMT. (Reporting by Paul Sandle; Editing by Mark Potter)

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