Inmarsat's satellite broadband in demand

Both sales and cash profits fell in the key maritime division, reflecting a depressed commercial shipping market and energy customers retrenching in the face of lower oil prices. Revenues in the enterprise segment slumped 9 per cent as some older products fell out of favour. But they climbed 3 per cent in the government arm as new products proved popular. Aviation sales also leapt 12 per cent as Inmarsat's SwiftBroadband product grew its active customer base to about 8,000 aircraft. And revenue from Ligado rose by more than half after its partner signed a $337m service deal.

Global Xpress, a worldwide broadband network powered by three satellites, has made significant strides since entering commercial service in January. Three major maritime communications resellers have agreed to install Fleet Xpress, its maritime product, on more than 5,000 vessels in the next five years. The US Marine Corps and Filipino forces used Government GX while they carried out a range of military exercises. And the GX Aviation service, scheduled for launch in the autumn, has already been approved by European aviation authorities for use on four leading Airbus models. Moreover, management continues to make progress on in-flight broadband deals with major airlines such as Lufthansa.

Inmarsat continues to expect GX to generate $500m in annual turnover by the end of 2020. Broker Jefferies predicts adjusted cash profits of $715m this calendar year, giving EPS of 46¢, rising to $779m and 54¢ in 2017 (from $726m and 63¢ in 2015).