Space News
Inmarsat Reports Jump In Fourth Quarter Revenue And Profit
Noting that, despite the global downturn, "the world's largest satellite-services companies" are posting "strong earnings and rising revenues," the Wall Street Journal (3/13, B2, Pastor) reports, "Inmarsat PLC on Thursday reported a 20% jump from a year earlier in fourth-quarter revenue for its core business. Profit excluding taxes rose even more sharply for the year, and the company increased its dividend." The company "expects to enjoy a revenue boost as more US troops are sent into Afghanistan and maneuver around desolate regions that lack ground-based communication networks. Steps taken in India and elsewhere to open markets to more satellite operators are expected to help support growth through at least 2010." According to the Journal, "Satellite services generally lag behind broader economic cycles by 18 months or more," and some analysts "predict the entire sector could face trouble in coming quarters. If the global recession drags on, analysts predict that operators...could get saddled with excess in-orbit capacity."
The Financial Times (3/13, Palmer) reports, "Like its satellites, Inmarsat appeared to defy gravity on Thursday as it announced a 55 per cent rise in annual pre-tax profits." According to the article, the company has "benefited from growing use of broadband internet communications on ships and aircraft and in remote areas of the globe," with the "biggest growth...in the aeronautical sector."
