An industry-wide decline in pricing for industrial broadband and satellite telecoms seems to have missed Inmarsat (ISAT). The company’s share price has suffered badly in the last few months due to rising competition and poor results from European peers, but sales held their own in the nine months to September 2017. Demand for in-flight internet sent the group’s aviation revenues up by 50 per cent to $54m ($41m). Enterprise is back on the rise and even the beleaguered maritime division managed to report flat revenue of $143m.
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The bottom line makes for less pleasant reading. Exorbitant spending – which management estimates will be $500m to $600m this year and next – means adjusted cash profit fell 7 per cent to $191m in the quarter.
