Inmarsat Revenues Down for Q1 2016
[Via Satellite 05-09-2016] Inmarsat revenue for the first quarter of 2016 was $298.6 million, down 2 percent or $6.2 million, from the first quarter of 2015. Revenue in maritime and enterprise services decreased by $6.7 million and $4.9 million, while government and aviation increased by 1.9 million and $4.1 million, respectively.
“Many of our markets face short-term headwinds which intensified in the first quarter, leading to a softer revenue performance than expected, although we remain highly competitive in each of our core markets, growing market share and diversifying the business to plan,” said Rupert Pearce, Inmarsat’s CEO.
Inmarsat said the foundations for future double-digit revenue growth are largely established, with its Global Xpress (GX) High Throughput Satellite (HTS) network now globally operational. The company still anticipates annual GX revenues of $500 million by the end of 2020, though this is to be updated in due course for revenues from I-5 F4 when the business plan for the un-launched satellite is confirmed.
Inmarsat said that, for operational reasons, the increase in GX revenues is proceeding more slowly than previously expected. Combined with market challenges, the company is revising its guidance downward by $50 million for 2016 to between $1.175 billion and $1.25 billion.
“Whilst in the near term business growth will continue to be challenging in choppy markets, we remain very well positioned for future growth and diversification, and indeed I remain confident that the foundations that we are establishing will deliver the expected medium term growth,” said Pearce.