Inmarsat reported a 13% drop in Q1 earnings, according to the company’s first income statement.
Private equity firms led by Apax and Warburg Pincus this year said Inmarsat will return to private equity ownership.
Founded in 1979, London-based Inmarsat was set up by the International Maritime Organisation. It deploys communication operations to ships, aircraft and remote locations worldwide.
The satellite operator, which is being taken private in a US$3.4bn deal by a private equity-led consortium, generated a revenue of $346.9m in the first three months.
Commenting on the results, Rupert Pearce, Inmarsat CEO, said: “The company has produced a strong underlying performance during Q1 of 2019 … building on the positive momentum achieved during 2018. We continue to successfully build and aggressively defend market share in our target markets, enabling the business to capitalise on the significant growth opportunities in these markets.”
Underlying earnings (EBITDA) dropped by 12.9% to US$152.4m. Excluding Ligado and costs relating to the takeover offer, EBITDA increased by 18.7% to $169.4m.
Post-tax profit crashed $326m lower, which Inmarsat reported reflected a change in the unrealised conversion liability on its 2023 convertible bond of $297.9m, as well as US$17m costs relating to the offer.
Revenue from the Maritime arm, the group’s largest division, was down 9.5%, while the Government and Aviation segments saw sales up by 28.6% and 53.4%. The Enterprise arm was down 13.8% and cash from the deal with US network Ligado was down 90.1%.