Welcome!

Microsoft Cloud Authors: Liz McMillan, John Basso, Pat Romanski, Elizabeth White, Mihai Corbuleac

News Feed Item

Inmarsat plc Interim Management Statement

LONDON, November 5, 2012 /PRNewswire/ --

Inmarsat plc (LSE: ISAT.L), the leading provider of global mobile satellite communications services, today provided the following information for the three months ended 30 September 2012.

Inmarsat plc - Highlights

  • Total revenue excluding LightSquared $322m up 5% (2011: $308m)
  • Wholesale maritime revenues up 17%
  • Over 2,100 FleetBroadband terminals added in Q3
  • Over 71,000 IsatPhone Pro subscribers at end of Q3
  • XpressLink gaining market share with new orders
  • Honeywell 5-year capacity commitment for business aviation with Global Xpress

Inmarsat Group Limited - Third Quarter Highlights

  • Inmarsat Global MSS revenue $187m up 3% (2011: $181m)
  • Inmarsat Solutions revenue $206m up 4% (2011: $197m)
  • Total EBITDA excluding LightSquared $161m (2011: $172m)
  • MSS active terminals up 13%

Rupert Pearce, Inmarsat's Chief Executive Officer, said, "The third quarter saw continued customer take-up of new services across our business sectors.  In maritime, another very positive quarter was driven by the benefit of pricing initiatives earlier in the year and by the continuing strong take-up of FleetBroadband.  Despite the headwinds we face from the on-going withdrawal from Afghanistan, results for our land mobile business improved with growth from IsatPhone Pro and positive underlying data growth due mainly to new BGAN subscribers.  

"In addition, we saw momentum in the take-up of our XpressLink service which is beginning to capture new market share and leads us to feel increasingly confident about the launch of Global Xpress.  In view of these developments we have decided for 2013 to increase our level of investment in certain L-band opportunities and bring forward some costs for Global Xpress that will provide for a more advanced state of readiness for service launch.  Overall, the third quarter continues to demonstrate improved and more stable revenues from our core wholesale operations and positions us well, despite the challenging macro-economic environment, to deliver revenues over this year and next within our current target."

Inmarsat plc

                                                Three months ended     
                                                   30 September      Increase/
    (US$ in millions)                             2012      2011    (decrease)

    Inmarsat Global - MSS revenue                186.7     180.7         3.3%
    Inmarsat Global - Other Income
    (including LightSquared)                      11.7      64.5      (81.9%)
    Inmarsat Solutions                           205.9     197.4         4.3%
                                                 404.3     442.6       (8.7%)
    Intercompany eliminations and
    adjustments                                  (78.4)    (78.5)
    Total revenue                                325.9     364.1      (10.5%)


Inmarsat Global

                                          
                                            Three months ended             
                                                30 September        Increase/
    (US$ in millions)                          2012      2011      (decrease)

    Maritime voice services                    19.6      21.6        (9.3%)
    Maritime data services                     85.4      68.0        25.6%
    Total maritime sector                     105.0      89.6        17.2%
    Land mobile voice services                  3.7       2.2        68.2%
    Land mobile data services                  30.6      34.8       (12.1%)
    Total land mobile sector                   34.3      37.0        (7.3%)
    Aviation sector                            24.3      26.6        (8.6%)
    Leasing                                    23.1      27.5       (16.0%)
    Total MSS revenue                         186.7     180.7         3.3%
    Other income (including LightSquared)      11.7      64.5       (81.9%)
    Total revenue                             198.4     245.2       (19.1%)


Growth in maritime data revenue resulted primarily from the impact of pricing initiatives implemented in the first half of 2012.  During the third quarter we added 2,128 FleetBroadband terminals and ended the quarter with an installed base of over 32,000 active FleetBroadband terminals.  On-going decline in maritime voice revenue is due to a structural shift to data services through increasing email substitution and take up of VOIP applications, offset to a limited extent by organic voice growth opportunities from crew services and smaller vessels.  

On-going customer migration to FleetBroadband from our older maritime services will have a continuing negative impact on our rate of revenue growth in the maritime sector because the cost of service is typically lower than for the services being replaced.  Generally, we expect this impact to be offset by on-going usage increases and net new subscriber growth.  

During the quarter, take up of XpressLink, our hybrid L and Ku-band maritime service, was also encouraging and a number of new contracts were signed and will begin installation over the coming months.  At the end of the quarter we had an installed base of 1,150 ships using our VSAT service, including more than 250 ships using XpressLink.

In our land mobile sector, the year-over-year decline in revenue for data services is due to reduced revenue from government users in Afghanistan and other material event-related revenues recorded the third quarter 2011.  We estimate that Afghanistan and events in North Africa in the third quarter of 2011 contributed $8.1m more revenue year-over-year, compared to the third quarter 2012.  While revenue from North Africa has now largely normalised, our annualised land mobile revenue from Afghanistan remains material and is expected to decline further and therefore impact performance in future periods.  Underlying growth in BGAN revenues excluding Afghanistan and other events was positive with growth in active terminals coupled with steady ARPUs.  

Our IsatPhone Pro service was the main driver behind strong growth in land voice revenue.  During the third quarter we recorded over 6,000 net subscriber additions and we ended the quarter with a total base of over 71,000 active IsatPhone Pro terminals.

Aviation revenue for the third quarter was down year-over-year when compared to an unusually strong third quarter in 2011 and was driven by lower Swift 64 revenue mainly due to lower military and government usage in the quarter.  SwiftBroadband continued to see strong take-up and revenue growth.  The third quarter of 2012 was a record for SwiftBroadband additions, many of which are being installed to support in-flight passenger services.  The take-up of SwiftBroadband continues to expand our customer base and reduces our dependence on government aviation business.

Leasing was in line with expectations for the third quarter. The decline in Other Income relates primarily to the reduced revenue contribution from our Cooperation Agreement with LightSquared and this was also the primary cause of the overall fall in Inmarsat Global revenue for the third quarter.  

Inmarsat Solutions

                                      Three months ended                                                          
                                          30 September     Increase/
    (US$ in millions)                    2012      2011   (decrease)

    Inmarsat MSS                        104.1     107.4      (3.1%)
    Broadband and Other MSS             101.8      90.0      13.1%
    Total revenue                       205.9     197.4       4.3%


Lower Inmarsat MSS revenue at the Inmarsat Solutions level was driven primarily by lower revenue from Afghanistan and lower event-related revenue year-over-year.  Growth in Broadband and Other MSS was primarily due to increased revenue from our US Government business unit in relation to managed network services and equipment sales.  

Liquidity

At 30 September 2012, the Inmarsat plc group had net borrowings of $1,423.0m, made up of cash and cash equivalents of $446.8m and total borrowings of $1,869.8m.  Including cash and available but undrawn borrowing facilities, the group had total available liquidity of $1,527.5m.  We remain fully funded as to all our capital needs for the foreseeable future.  

Our Financial Reports

Inmarsat Group Limited, our wholly-owned subsidiary, today reported unaudited consolidated financial results for the three months ended 30 September 2012.  A copy of the full financial report for Inmarsat Group Limited can be accessed via the investor relations section of our website.

Other Information

Inmarsat management will discuss the results announced today and other financial and business information in a conference call on Monday, 5 November at 2:00pm London time, (United States 9:00am EST).  To access the call please dial +44(0)1452-555566.  The conference id for the call is 53479787.  The call will be recorded and available for one week after the event.  To access the recording please dial +44(0)1452-550000 and enter the access number 53479787.  The call will also be available via a webcast, to access the webcast please go to http://www.inmarsat.com/webcast.

Forward-looking Statements

Certain statements in this announcement constitute "forward-looking statements".  These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include: general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance or programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel.  You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement.  We undertake no obligation to update or revise any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.