Inmarsat reports record 2008 results and expects solid growth in 2009

Inmarsat’s core mobile satellite services business recorded an EDITBA margin of 68 per cent in 2008, to end-December, with revenues up 13.9 per cent year-on-year to US$634.7 million, and EBITDA up 12.5 per cent to US$431.6 million.

The uptake of inflight communications has helped boost business in Inmarsat’s aeroneutical business

Pre-tax profit for the year amounted to US$193.8 million, up 56 per cent year-on-year.

For Q408, revenue was up 20.4 per cent to US$160.6 million, while EBITDA came in at US$101.4, up 18.7 per cent.

Increased demand for both voice and data services contributed to growth in maritime sector revenue of 7.2 per cent year-on-year. Growth in Inmarsat’s base of active maritime terminals was up 5.8 per cent for the year, including growth of 36.7 per cent in its base of active Fleet and FleetBroadband terminals.

Inmarsat’s land mobile sector recorded revenue growth of 12.7 per cent for the year. This performance was driven by continued growth of the company’s BGAN service, which continues to attract new users to the network and drive higher usage levels across its user base. Inmarsat’s base of active land mobile terminals was up 2.3 per cent for the year, while the number of active BGAN terminals was up 75 per cent, ending the year at 27,635.

Growth in the aeronautical sector was 45.4 per cent and was the result of sustained demand and high levels of usage for Inmarsat’s Swift 64 service, which continues to primarily serve government aircraft and business jets. Overall active aeronautical terminals were up 13.5 per cent year over year.

In the way of outlook, given that a significant proportion of Inmarsat’s revenue comes from government customers and as commercial customers tend to have a high degree of day-to-day reliance on its services, the company believes its business is well positioned against economic downturn. As a result, Inmarsat is cautiously optimistic that its business will continue to show solid revenue growth in 2009.