Inmarsat narrows losses as aviation and government units shine

Satellite communications firm Inmarsat narrowed losses during the first half of its trading year on the back of growth in its aviation and government wings.

Inmarsat cut losses 4.65% to $125.2m in the six months ended 30 June thanks to a 2.2% bump in revenues to $733.3m, leading the group to reiterate its guidance for full-year revenues of $1.3bn-1.4bn.

Underlying earnings increased 3.1% to $11.6m

The FTSE 250 constituent's aviation division saw sales improve 33% to $154.1m in the half, driven by IFC equipment sales, increased GX airtime revenues and further growth in its core business.

Inmarsat's government revenue meanwhile increased 15.2% to $27.9m as several new business wins and expanded mandates increased government expenditure under long-term customer contracts.

Looking forward, Inmarsat reiterated its guidance for "mid-single-digit" percentage revenue growth on average over the next five years, with EBITDA and free cash flow generation expected to improve "steadily".

Chief executive Rupert Pearce said: "Inmarsat produced a robust performance in the first half of the year, supported by continued traction with Global Xpress, as we continue to focus on building and defending market share in our target markets."

As of 0945 BST, Inmarsat shares had crept forward 0.98% to 578.20p.