Inmarsat Reports Strong 2002 Full-Year Results
Data Strategy Progressing Successfully
* Group revenues up 5% to US$463 million
* EBITDA up 11% to US$314 million
* EPS increase of 165% to US$1.64
LONDON, March 24 /PRNewswire/ -- Inmarsat Ventures plc, the Total Communications Network, and the world's leading provider of global mobile communications via satellite to enterprises, today announced impressive full- year results for the year ended 31 December 2002.
Inmarsat Ltd Key Highlights
* 25% increase of total data revenues
* Data accounted for 54% of on demand service revenues
* Land data revenues increased by 72%
* Terminal activations up by 10%
EBITDA, prior to impairments, increased by 11% to US$313.6 million, versus US$282.3 million in 2001. Group operating profit, increased by 46% to US$184.7 million, versus US$126.8 million in 2001, prior to impairments and operating loss of joint venture. Net operating costs declined from US$154.8 million in 2001 to US$149.5 million in 2002.
Total group revenues for the year were up 5% to US$463.1 million, from US$441.8 million in 2001. Basic earnings per share were boosted by 165% to US$1.64 per share, compared to US$0.62 per share in 2001.
The improved EBITDA performance was largely attributable to increased revenues from high-speed data land based satellite communication solutions and leased satellite services, supported by strong take-up of new product introductions, lower operating costs and an element of global security revenues.
Commenting on the results, Michael Storey, Inmarsat Ventures plc President and CEO said: "Inmarsat Ventures has achieved a very strong set of results in the face of what has been a difficult year for the satellite and telecommunications industry generally. The fruits of our data strategy are now being realised with a 25% increase in data revenues. Specifically looking at our 'on demand' services, for the first time data now accounts for more than half of total revenues.
"A major component of this strategy was the successful launch of our Regional Broadband Global Area Network (Regional BGAN) service in November 2002, which provides 144 kbit/s secure, shared IP Internet connectivity from a small terminal to around a third of the world today. Offering at least double the through-put of terrestrial GPRS and with far greater coverage, Regional BGAN enables us to serve the continuously growing enterprise demand for higher bandwidth, increase customer usage, and leverage opportunities to access new markets, such as finance and manufacturing.
"Through Regional BGAN we are building important market relationships in preparation for the launch of our next generation of BGAN services over the Inmarsat-4 satellites, currently planned for 2005. The Inmarsat-4 construction programme has remained a key focal point. When they are launched, the satellites will provide broadband data services at speeds of up to 432 kbit/s. We are committed to achieving significant Regional BGAN market penetration by then, which puts us at the forefront of the wireless data revolution.
Inmarsat Ltd Revenue Breakdown 2002:
* Maritime: 57%
* Land: 28%
* Aeronautical: 3%
* Leasing: 12%
"Other important introductions in 2002 included the Inmarsat Fleet F77 and the Swift64 ISDN services in April, both of which support the provision of higher-speed access to our other two core markets of maritime and aeronautical," added Michael Storey.
Ramin Khadem, Inmarsat Ventures plc Chief Financial Officer, stated: "We are very pleased with these results. The Company continues to generate sizable cash flow, underpinned by our successful data services."
Net cash inflow from operating activities increased to US$318.1 million from US$262.0 million for 2001.
"We have utilised our cash and a small portion of our debt facility to continue our investment programme. Of the US$382.8 million of capital expenditure in 2002, the majority went into the Inmarsat-4 construction programme as well as Regional BGAN infrastructure development," added Ramin Khadem.
About Inmarsat Ventures plc
Inmarsat Ventures plc owns and operates a global satellite network and distributes its solutions through a worldwide group of service providers to end customers in the maritime, aeronautical and multinational corporate sectors. The Group's principal operational areas are: Global mobile satellite communications, transportable broadband communications solutions, and provision of content and applications to its key markets.
Inmarsat Ventures group principal operational areas:
* Inmarsat Ltd owns and operates a global satellite network and delivers
its solutions through a worldwide group of service providers in over 80
countries who offer a comprehensive range of mobile communications
services in the air, on land and at sea to approximately 260,000
customer terminals
* Invsat Ltd provides integrated telecommunications systems and services,
including satellite systems, radio systems and VSAT (very small aperture
terminal) satellite solutions to oil and gas, maritime, government and
emergency services customers.
* Rydex Corporation Ltd develops and provides wireless electronic mail,
ship/shore messaging and automated data communications systems to the
maritime industry.
Visit www.inmarsatventures.com for more information.
SOURCE Inmarsat Ventures plc
/CONTACT: Stephen Rogers of Inmarsat Ventures plc, +44-20-7728-1504, fax
+44-20-7728-1179, or Email: stephen_rogers@inmarsat.com; Nic Bennett of
Caroline Ledosquet of Financial Dynamics, +44-20-7831-3113, for Inmarsat/
/Web site: inmarsatventures.com / |
