Even after adjusting for the suspension of an agreement with US mobile network LightSquared (until 2014), cash profit at mobile satellite service provide Inmarsat (ISAT) fell 3 per cent in 2012 to $643m (£428m) - partly driven by increased costs for the group's Global Xpress programme.
Global Xpress will see its first satellite deployment before the year-end, with the completion of global coverage in 2014. The programme should eventually bring a step-change in the group's prospects, but it's proving costly. Total capital expenditure on it will be $1.2bn, with $575m-$625m due to be spent in 2013, and net debt rose 9 per cent in 2012 to $1.52bn - although management is adamant that the programme is fully funded for all foreseeable capital needs.
Operationally, meanwhile, the global business received a boost from Inmarsat's maritime operations, which grew revenue 14.6 per cent in the year to $411m. That reflected increased take up of Inmarsat's FleetBroadband terminals - 7,890 new additions in the year - although the total land mobile segment saw revenues fall 12.7 pr cent to $132.4m, due to factors such as troop withdrawals from Afghanistan. Overall, and reflecting the LightSquared suspension, the global unit's revenue fell 12.8 per cent to $835.9m. The solutions business boosted revenue 6.9 per cent to $810.3m.
Prior to these figures, Natixis was expecting EPS of 54¢ for 2013.
INMARSAT (ISAT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 644p | MARKET VALUE: | £2.88bn | |
| TOUCH: | 644-645p | 12-MONTH HIGH: | 673p | LOW: 389p |
| DIVIDEND YIELD: | 4.6% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 251¢* | NET DEBT: | 135% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 1.00 | 194 | 78.0 | 30.3 |
| 2009 | 1.04 | 197 | 33.0 | 33.4 |
| 2010 | 1.17 | 334 | 57.0 | 36.7 |
| 2011 | 1.41 | 367 | 55.0 | 40.4 |
| 2012 | 1.34 | 294 | 48.0 | 44.4 |
| % change | -5 | -20 | -13 | +10 |
Ex-div:15 May Payment:24 May *Includes intangible assets of $970.5m, or 217¢ a share £1=$1.51 | ||||
