[Satellite TODAY Insider 03-08-11] Inmarsat saw its 2010 full-year revenues increase 13 percent to $1.17 billion, with operating profits jumping 70 percent to reach $333.5 million, the company announced in its latest financial results, issued March 7.
    The increases were driven by a sharp rise in the operator’s 2010 pretax profit and from its cooperation agreement with U.S. 4G-LTE broadband network provider LightSquared, the company said.
    Despite the strong numbers, Inmarsat’s maritime business saw challenges in 2010, generating a little more than $98 million in revenues, a 6.3 percent decrease compared to the same stage last year. CEO Andrew Sukawaty said the operator’s maritime revenue growth "underperformed expectations." Inmarsat’s fourth-quarter marine voice-services sales also declined 3.9 percent to $24.7 million. "We are seeing a contraction in demand for voice services due to e-mail substitution and other competition," Sukawaty said in a conference call.
    Natixis Securities Satellite Analyst Eric Beaudet said Inmarsat’s results were disappointing, as the operator’s sales growth slowed, lower guidance for 2011 MSS revenue. "Even though margins are excellent and the group remains confident on its longer-term prospects, we think the share will slightly be under pressure today. Inmarsat’s fourth-quarter sales come out to be $292.1 million, an 8.4 percent year-on-year improvement but well below the expected $307 million, as maritime growth underperformed. Indeed, the group mentioned challenging economic conditions in the shipping industry and the replacement of older service by new ones, such as FleetBroadband, at lower price points."
    Beaudet added that Inmarsat’s projected MSS revenue growth of between 2 percent and 4 percent in 2011 was below analysts’ 5 percent to 7 percent target.
    Inmarsat’s full-year aeronautical segment revenues increased 33 percent to $101 million. The Stratos part of its business generated $716.8 million in revenues in 2010, an 11 percent increase compared with 2009. Managed communications solutions provider Segovia, which was acquired by Inmarsat in January, contributed its revenues to Inmarsat’s totals in this report.

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