Inmarsat could rocket to profits

Pre-tax profits, excluding impairment losses, rose 9 per cent to $365m (£218m). That was driven by a 3 per cent sales increase at its core global communications business, which was in turn helped by strong maritime and aviation performances. Inmarsat added over 7,200 subscribers to its FleetBroadband maritime service, and strong commercial demand pushed aviation sales up 13 per cent.

Inmarsat's $1.6bn Global Express programme, which promises two more satellite launches in the coming months, should achieve global coverage this year. The company has pencilled in a hefty $500-525m in capital spending this year, but new operations could reduce that burden. It recently bought shipping communications business Globe Wireless, and is soon launching Fleet One, which provides communication services to the fishing and maritime leisure communities.

But it won't all be smooth sailing. Troop withdrawals from Afghanistan remain problematic, prompting a 7 per cent slump in data sales at Inmarsat's land mobile segment. Together with US defence spending cuts and increased competition, that triggered a 6 per cent revenue decline at its solutions business.

Prior to the results, Broker Jefferies expected adjusted full-year EPS of 36¢, down from 57¢ in 2013.