When a company is as battered as Inmarsat (ISAT), it doesn’t take much for shareholders to rejoice. That’s why its shares rose by as much as 11 per cent on the morning management announced the bottom line had swung back into profit in the first quarter of 2018, compared with a loss during the prior three months.
IC TIP:
Hold
at
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After excluding the impact of an unrealised liability on its 2023 convertible bond, however, post-tax profits were actually down 44 per cent year on year. Management hasn’t upgraded guidance for the full year, while broker Numis expects adjusted operating profit to fall from $751m to $736m as operating expenditure accelerates.