Inmarsat posts fall in first-quarter profit ahead of $3.4bn private equity takeover
Satellite communications firm Inmarsat has posted a double-digit fall in profits for the first quarter ahead of its $3.4bn (£2.6bn) private equity takeover.
Read more: Inmarsat prepares to go private in $3.4bn takeover
The figures
Inmarsat posted a 0.4 per cent uptick in revenue to $346.9m in the three months to the end of March.
Earnings before interest, tax, depreciation and amortisation dropped 12.9 per cent to $152.4m.
Why it’s interesting
Inmarsat has posted its first results since it unveiled a buyout deal led by private equity firms Apax Partners and Warburg Pincus.
The UK-based satellite firm has seen a decline in earnings over the first three months of the year, driven by costs relating to its takeover offer and a sharp drop in income from its spectrum deal with Ligado.
The firm was also hit by a $13m increase in costs, reflecting a higher level of low-margin equipment sales.
But Inmarsat maintained its forecast of mid-single digit revenue growth over the five years to 2022 and 2019 revenue, excluding Ligado, of between $1.3m and $1.4m.
Shares in Inmarsat dropped just under one per cent following the update.
Read more: Inmarsat shares jump 16 per cent after buyout offer
What Inmarsat said
Chief executive Rupert Pearce said: “Inmarsat produced a strong underlying performance during the first quarter of the year, building on the positive momentum achieved during 2018.
“We continue to successfully build and aggressively defend market share in our target markets, supported by our diversified product portfolio, enabling the business to capitalise on the significant growth opportunities in these markets.”