An impending takeover offer by persistent suitor Harbinger Capital, which is teaming up with US satellite company SkyTerra Communications, overshadowed a solid first-half result for Inmarsat. Harbinger, a US hedge fund, owns 28 per cent of Inmarsat and a firm offer is pending regulatory clearance. Harbinger has given a "reference price" for the possible bid of 535p a share.
A key reason for the interest in Inmarsat is the growth it is achieving in providing broadband services across oceans. "We go where terrestrial networks don't go," says executive chairman Andrew Sukawaty.
| INMARSAT (ISAT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 481p | MARKET VALUE: | £2.2bn | |
| TOUCH: | 480-481p | 12-MONTH HIGH: | 557p | LOW: 373p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 47 | |
| NET ASSET VALUE*: | 155c | NET DEBT: | 212% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (c) | Dividend per share (c) |
|---|---|---|---|---|
| 2007 | 284 | 77.8 | 14 | 11.55 |
| 2008 | 486 | 87.8 | 13 | 12.13 |
| % change | +71 | +13 | -7 | +5 |
Ex-div:24 Sep Payment:24 Oct *Includes intangible assets of $1bn, or 227c a share. £1=$1.96 | ||||
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A highlight of Inmarsat's half-year results was the solid performance in its maritime data services business, where revenues were up 6.5 per cent to $57.5m (£29.3m). But the fastest growth came from its aeronautical revenues, which rose 46 per cent to $15.6m, driven by demand for its high-speed data service from government aircraft, business jets and commercial airlines.
Broker Cazenove is expecting to upgrade its full-year EPS estimate of close to 28c (21.3c in 2007). A tax credit in 2007 boosted EPS in the previous half-year.
