Inmarsat plc Reports Full Year Results 2009
Poster: SySAdmin
Posted on March 9, 2010 at 2:35:01 AM
Inmarsat plc Reports Full Year Results 2009
LONDON, March 9, 2010-- Inmarsat plc (LSE: ISAT), the leading provider of global
mobile satellite communications services, today reported consolidated
financial results for the year ended 31 December 2009.
Inmarsat plc - Full Year 2009 Highlights
- Total revenue $1,038.1m up 4.2% (2008: $996.7m)
- Inmarsat Global MSS revenue $682.8m up 10.4% (2008: $618.4m)
- EBITDA $594.2m up 11.9% (2008: $531.2m)
- Adjusted EPS[1] $0.38 up 26.7% (2008: $0.30)
- 2nd interim dividend of 20.63 cents US$, up 13.4% on 2008 final
dividend
- Full year dividend increase 10%
- Free cash flow up 54% to $349.0m
Q4 2009 Inmarsat Group[2] Highlights
- Q4 revenue $181.5m up 13.0% (2008: $160.6m)
- Q4 MSS revenue $176.9m up 12.5% (2008: $157.2m)
- Q4 EBITDA $119.7m up 18.0% (2008: $101.4m)
- $650m refinancing completed, lowering cost of debt
- Acquisition of Segovia government solutions business
Andrew Sukawaty, Inmarsat's Chairman and Chief Executive
Officer, said, "We finished the year strongly and continue to see good
trading conditions in all our markets. 2009 was a transformational year for
our satellite network, our service portfolio and our distribution
arrangements, giving us a strong platform to maintain our market leadership.
We are entering 2010 with a positive outlook, revenue growth momentum and new
growth opportunities ahead of us."
Inmarsat Global results
Our Inmarsat Global business delivered growth in MSS revenue
of 10.4% for the year ended 31 December 2009. Our maritime revenue was up
7.4% and was driven by strong take up and usage of our Fleet and
FleetBroadband services. Our FleetBroadband service has gained widespread
market acceptance since becoming globally available at the beginning of 2009.
We are also pleased with the progress of our new FleetBroadband 150 service
which has been successful in attracting new business from smaller vessels.
The land mobile sector revenue growth of 3.3% was mainly due
to growth in our BGAN service. BGAN revenue for the year increased by 33% as
a result of growth in subscribers and migration from older services. BGAN
ARPU strengthened in the second half of the year and reached $288 per month
in the fourth quarter. We also saw growth in revenue from our low data rate
services, showing the benefit of our collaboration with SkyWave which was
completed during the year.
Our aeronautical and leasing sectors continued to see strong
revenue growth, being up 18% and 30%, respectively, for the year. Customer
acceptance and take up of our SwiftBroadband service have been ahead of our
expectations and additions of SwiftBroadband terminals began to exceed our
established Swift 64 service in the second half of the year. In-flight
cellular services for airline passengers made good progress during the year,
but remain at an early stage in terms of revenue contribution.
Net operating costs for Inmarsat Global were down 1.9%,
contributing to growth in EBITDA of 14.8% to $495.5m.
Stratos results
Our Stratos business recorded revenue growth of 1.0% for the
year. Growth of 3.8% in MSS revenue was offset by a decline in Broadband
revenues. Although Broadband revenues were lower year over year, the
profitability and cash flow of this division has improved. Operating costs at
Stratos increased marginally by 0.7% for the year and Stratos ended the year
with growth in EBITDA of 2.2% to $100.5m.
Dividend
The dividend announced today will be paid as a second interim
dividend and will be paid in lieu of a final dividend for the 2009 financial
year. The dividend payment date will be 1 April to holders of record on 19
March 2010. Together with the interim dividend of 12.73 US$ cents paid in
October 2009, the total dividend for 2009 will be 33.36 US$ cents, an
increase of 10.0% on the total 2008 dividend.
Liquidity
The Group ended the year with a strong balance sheet and
significant available liquidity. At 31 December 2009, the Group had net
borrowings of $1,319.5m, made up of cash of $226.8m and total borrowings of
$1,546.3m. Taking into consideration our cash on hand and available but
undrawn borrowing facilities of $210.0m, the Group had total available
liquidity of $436.8m at the end of the year. During the fourth quarter we
refinanced over $600m of debt that fell due in 2012 with new debt at lower
cost and not maturing until 2017. The Group has no debt maturities in the
next twelve months.
Outlook
We believe demand from commercial and government customers is continuing
to expand, particularly for our data services. With a portfolio of broadband
services now deployed globally in all our markets, we are further able to
meet our customer needs and continue our revenue growth. In addition, we are
excited about entering the handheld satellite phone voice market and believe
this represents an attractive new growth opportunity for the future. In view
of these factors we believe the Group can continue to deliver solid revenue
growth in 2010.
Allowing for approximately $10m of planned capital expenditure
that has been deferred from 2009 to 2010, we expect our 2010 cash capital
expenditure to be in the region of $160 to $170m, including capital
expenditure for our Stratos division and deferred satellite payments.
Other Information
A webcast recording of our results presentation to be held on
9 March at 9:30am will be posted to our website after the event. To access
the webcast please go to the investor relations section of our website at
http://www.inmarsat.com. Inmarsat management will also host a conference call
on Tuesday, 9 March at 2:00pm London time (United States 9:00am EST). To
access the call, please dial +44(0)20-7162-0025 and enter the access code
858360. A recording of the call will be available for one week after the
event. To access the recording please dial +44(0)20-7031-4064 and enter the
access code 858360. The call will also be available by webcast accessible via
the investor relations section of our website.
Our Financial Reports
Our subsidiaries Inmarsat Group Limited and Stratos Global
Corporation are required by the terms of their outstanding debt securities to
report consolidated financial results. Inmarsat plc is the ultimate parent
company of the Group. A copy of the financial report for Stratos Global
Corporation for the year ended 31 December 2009 can be accessed via the
investor relations section of our website. We expect Inmarsat Group Limited
to report full year 2009 results on or before 30 April 2010 and a copy of
these results can also be accessed via our website at that time.
To assist analysts and investors in their understanding of the
results announced today, the following unaudited financial tables for the
fourth quarter are provided for Inmarsat Group Limited.
Inmarsat Group Limited
Revenue Breakdown (unaudited) Fourth quarter ended December 31,
2009 2008 %
Difference
Revenues (US$ in millions)
Maritime sector:
voice services 25.7 26.3 (2.3%)
data services 65.5 56.6 15.7%
Total maritime sector 91.2 82.9 10.0%
Land mobile sector:
voice services 2.0 2.6 (23.1%)
data services 35.7 32.3 10.5%
Total land mobile sector 37.7 34.9 8.0%
Aeronautical sector 20.6 18.2 13.2%
Leasing 27.4 21.2 29.2%
Total mobile satellite
communications services 176.9 157.2 12.5%
Other income 4.6 3.4 35.3%
Total revenue 181.5 160.6 13.0%
Inmarsat Group Limited
Net Operating Costs Fourth quarter ended December 31,
(unaudited)
2009 2008 % Difference
(US$ in millions)
Employee benefit costs 32.7 23.7 38.0%
Network and satellite 13.6 11.0 23.6%
operations costs
Other operating costs 20.0 31.2 (35.9%)
Work performed by the Group (4.5) (6.7) (32.8%)
and capitalised
Total net operating costs 61.8 59.2 4.4%
Forward-looking Statements
Certain statements in this announcement constitute
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. 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 of 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.
---------------------------------
[1] Adjusted for the impact of $28.8m of non-recurring interest cost
associated with refinancing activity completed during the fourth quarter
2009.
[2] Inmarsat Group Limited results exclude the results of Stratos Global
Corporation.
Source: Inmarsat plc
Contact: Inmarsat, London, UK. Investor Enquiries: Simon Ailes, +44-20-7728-1518, simon_ailes@inmarsat.com ; Media Enquiries: Christopher McLaughlin, +44-20-7728-1015, christopher_mclaughlin@inmarsat.com
LONDON, March 9, 2010-- Inmarsat plc (LSE: ISAT), the leading provider of global
mobile satellite communications services, today reported consolidated
financial results for the year ended 31 December 2009.
Inmarsat plc - Full Year 2009 Highlights
- Total revenue $1,038.1m up 4.2% (2008: $996.7m)
- Inmarsat Global MSS revenue $682.8m up 10.4% (2008: $618.4m)
- EBITDA $594.2m up 11.9% (2008: $531.2m)
- Adjusted EPS[1] $0.38 up 26.7% (2008: $0.30)
- 2nd interim dividend of 20.63 cents US$, up 13.4% on 2008 final
dividend
- Full year dividend increase 10%
- Free cash flow up 54% to $349.0m
Q4 2009 Inmarsat Group[2] Highlights
- Q4 revenue $181.5m up 13.0% (2008: $160.6m)
- Q4 MSS revenue $176.9m up 12.5% (2008: $157.2m)
- Q4 EBITDA $119.7m up 18.0% (2008: $101.4m)
- $650m refinancing completed, lowering cost of debt
- Acquisition of Segovia government solutions business
Andrew Sukawaty, Inmarsat's Chairman and Chief Executive
Officer, said, "We finished the year strongly and continue to see good
trading conditions in all our markets. 2009 was a transformational year for
our satellite network, our service portfolio and our distribution
arrangements, giving us a strong platform to maintain our market leadership.
We are entering 2010 with a positive outlook, revenue growth momentum and new
growth opportunities ahead of us."
Inmarsat Global results
Our Inmarsat Global business delivered growth in MSS revenue
of 10.4% for the year ended 31 December 2009. Our maritime revenue was up
7.4% and was driven by strong take up and usage of our Fleet and
FleetBroadband services. Our FleetBroadband service has gained widespread
market acceptance since becoming globally available at the beginning of 2009.
We are also pleased with the progress of our new FleetBroadband 150 service
which has been successful in attracting new business from smaller vessels.
The land mobile sector revenue growth of 3.3% was mainly due
to growth in our BGAN service. BGAN revenue for the year increased by 33% as
a result of growth in subscribers and migration from older services. BGAN
ARPU strengthened in the second half of the year and reached $288 per month
in the fourth quarter. We also saw growth in revenue from our low data rate
services, showing the benefit of our collaboration with SkyWave which was
completed during the year.
Our aeronautical and leasing sectors continued to see strong
revenue growth, being up 18% and 30%, respectively, for the year. Customer
acceptance and take up of our SwiftBroadband service have been ahead of our
expectations and additions of SwiftBroadband terminals began to exceed our
established Swift 64 service in the second half of the year. In-flight
cellular services for airline passengers made good progress during the year,
but remain at an early stage in terms of revenue contribution.
Net operating costs for Inmarsat Global were down 1.9%,
contributing to growth in EBITDA of 14.8% to $495.5m.
Stratos results
Our Stratos business recorded revenue growth of 1.0% for the
year. Growth of 3.8% in MSS revenue was offset by a decline in Broadband
revenues. Although Broadband revenues were lower year over year, the
profitability and cash flow of this division has improved. Operating costs at
Stratos increased marginally by 0.7% for the year and Stratos ended the year
with growth in EBITDA of 2.2% to $100.5m.
Dividend
The dividend announced today will be paid as a second interim
dividend and will be paid in lieu of a final dividend for the 2009 financial
year. The dividend payment date will be 1 April to holders of record on 19
March 2010. Together with the interim dividend of 12.73 US$ cents paid in
October 2009, the total dividend for 2009 will be 33.36 US$ cents, an
increase of 10.0% on the total 2008 dividend.
Liquidity
The Group ended the year with a strong balance sheet and
significant available liquidity. At 31 December 2009, the Group had net
borrowings of $1,319.5m, made up of cash of $226.8m and total borrowings of
$1,546.3m. Taking into consideration our cash on hand and available but
undrawn borrowing facilities of $210.0m, the Group had total available
liquidity of $436.8m at the end of the year. During the fourth quarter we
refinanced over $600m of debt that fell due in 2012 with new debt at lower
cost and not maturing until 2017. The Group has no debt maturities in the
next twelve months.
Outlook
We believe demand from commercial and government customers is continuing
to expand, particularly for our data services. With a portfolio of broadband
services now deployed globally in all our markets, we are further able to
meet our customer needs and continue our revenue growth. In addition, we are
excited about entering the handheld satellite phone voice market and believe
this represents an attractive new growth opportunity for the future. In view
of these factors we believe the Group can continue to deliver solid revenue
growth in 2010.
Allowing for approximately $10m of planned capital expenditure
that has been deferred from 2009 to 2010, we expect our 2010 cash capital
expenditure to be in the region of $160 to $170m, including capital
expenditure for our Stratos division and deferred satellite payments.
Other Information
A webcast recording of our results presentation to be held on
9 March at 9:30am will be posted to our website after the event. To access
the webcast please go to the investor relations section of our website at
http://www.inmarsat.com. Inmarsat management will also host a conference call
on Tuesday, 9 March at 2:00pm London time (United States 9:00am EST). To
access the call, please dial +44(0)20-7162-0025 and enter the access code
858360. A recording of the call will be available for one week after the
event. To access the recording please dial +44(0)20-7031-4064 and enter the
access code 858360. The call will also be available by webcast accessible via
the investor relations section of our website.
Our Financial Reports
Our subsidiaries Inmarsat Group Limited and Stratos Global
Corporation are required by the terms of their outstanding debt securities to
report consolidated financial results. Inmarsat plc is the ultimate parent
company of the Group. A copy of the financial report for Stratos Global
Corporation for the year ended 31 December 2009 can be accessed via the
investor relations section of our website. We expect Inmarsat Group Limited
to report full year 2009 results on or before 30 April 2010 and a copy of
these results can also be accessed via our website at that time.
To assist analysts and investors in their understanding of the
results announced today, the following unaudited financial tables for the
fourth quarter are provided for Inmarsat Group Limited.
Inmarsat Group Limited
Revenue Breakdown (unaudited) Fourth quarter ended December 31,
2009 2008 %
Difference
Revenues (US$ in millions)
Maritime sector:
voice services 25.7 26.3 (2.3%)
data services 65.5 56.6 15.7%
Total maritime sector 91.2 82.9 10.0%
Land mobile sector:
voice services 2.0 2.6 (23.1%)
data services 35.7 32.3 10.5%
Total land mobile sector 37.7 34.9 8.0%
Aeronautical sector 20.6 18.2 13.2%
Leasing 27.4 21.2 29.2%
Total mobile satellite
communications services 176.9 157.2 12.5%
Other income 4.6 3.4 35.3%
Total revenue 181.5 160.6 13.0%
Inmarsat Group Limited
Net Operating Costs Fourth quarter ended December 31,
(unaudited)
2009 2008 % Difference
(US$ in millions)
Employee benefit costs 32.7 23.7 38.0%
Network and satellite 13.6 11.0 23.6%
operations costs
Other operating costs 20.0 31.2 (35.9%)
Work performed by the Group (4.5) (6.7) (32.8%)
and capitalised
Total net operating costs 61.8 59.2 4.4%
Forward-looking Statements
Certain statements in this announcement constitute
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. 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 of 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.
---------------------------------
[1] Adjusted for the impact of $28.8m of non-recurring interest cost
associated with refinancing activity completed during the fourth quarter
2009.
[2] Inmarsat Group Limited results exclude the results of Stratos Global
Corporation.
Source: Inmarsat plc
Contact: Inmarsat, London, UK. Investor Enquiries: Simon Ailes, +44-20-7728-1518, simon_ailes@inmarsat.com ; Media Enquiries: Christopher McLaughlin, +44-20-7728-1015, christopher_mclaughlin@inmarsat.com