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Inmarsat PLC

Inmarsat plc Consistent Revenue and EBITDA growth

Inmarsat plc (LON: ISAT.L), the world leader in global mobile satellite communications, today announces unaudited financial results for the year ended 31 December 2018.

Summary and Financial Highlights

In 2018, Inmarsat delivered good growth in Revenue and EBITDA, with year-on-year increases of 5.3% and 4.2% respectively and consistent quarter-on-quarter improvement. This result, building on the return to growth established in 2017, was driven by the strength of our global GX broadband offering, particularly in Aviation, Government and Maritime, and by lower indirect costs. Aviation revenues grew by over 40%, within which In-Flight Connectivity revenues more than doubled.

$ in millions

Full Year

Fourth Quarter

2018

2017 (restated)1

Change

Change (%)

2018

 

2017

(restated)1

Change

Change (%)

Group revenue

1,465.2

1,391.7

73.5

5.3%

378.7

351.8

26.9

7.6%

Maritime

552.8

567.3

(14.5)

(2.6%)

135.7

144.4

(8.7)

(6.0%)

Government

381.0

366.7

14.3

3.9%

102.7

90.8

11.9

13.1%

Aviation

256.1

181.8

74.3

40.9%

72.4

47.7

24.7

51.8%

Enterprise

130.0

132.6

(2.6)

(2.0%)

31.4

32.1

(0.7)

(2.2%)

Ligado and other2

145.3

143.3

2.0

1.4%

36.5

36.8

(0.3)

(0.8%)

EBITDA3

770.1

739.3

30.8

4.2%

190.6

166.3

24.3

14.6%

PAT

125.0

185.0

(60.0)

(32.4%)

29.1

33.5

(4.4)

(13.1%)

Adjusted PAT3

148.2

193.4

(45.2)

(23.4%)

26.2

26.1

0.1

0.4%

 

Operational Highlights
· 2018 Group Revenue (ex Ligado) increased by $71.6m, or 5.7%, to $1,334.5m, including $26.6m increase in Q4:

o Maritime: consistent double-digit growth in revenues and further market share capture in the fast-growing VSAT segment. New strategies are being implemented in the mid-market, to help protect market share, as customers migrate to VSAT

o Government: sustained and growing penetration of the US customer base. Revenues little changed in other markets

o Aviation: In-Flight Connectivity (“IFC”) revenues more than doubled to $101.3m, including first GX IFC airtime revenues and with materially improved cash flow. Improved IFC market position with growing order book and strategic Panasonic agreement. Core business continues to deliver high margin double-digit revenue growth

o Enterprise: legacy markets remain in long term decline, with foundations to access the emerging global satellite “Industrial Internet-of-Things” (“IIoT”) opportunity building steadily

o GX airtime and related revenues4: grew by around 85% to $250.9m (2017: $135.9m)

· 2018 Group EBITDA (ex Ligado) increased by $27.0m, or 4.4%, to $639.5m, including $23.3m increase in Q4, reflecting growth in revenue and absence of further restructuring charges

· 2018 Group Profit After Tax: down $60.0m (32.4%) to $125.0m, with higher EBITDA more than offset by higher depreciation

· Further development of technology roadmap: GX-5 and I-6 satellite programs on track, new lower cost, higher functionality network architecture in development to drive meaningful moderation in capex from 2021

· These operational highlights exclude the impact of Ligado, which is not part of our core operations. Ligado contributed revenues of $130.7m (2017: $128.8m) and EBITDA of $130.6m (2017: $126.8m).