Inmarsat reports profit fall after failed LightSquared partnership
Satellite provider Inmarsat posted a 20% pre-tax fall in profit after revenues fell following the failure of the LightSquared plan to create a new mobile network in North America.
It posted a pre-tax profit of $294 million for 2012, which is also contributed to by services in aircraft and military from remote locations.
Aside from the contribution for LightSquared, which had rented some of Inmarsat’s airwaves, revenues actually rose for the year by 6% to $1.28 billion, which was helped by an increase in new broadband terminals.
The company said it expects continued growth into 2013.
“We expect organic new revenue growth to outpace the expected loss of revenue from the on-going withdrawal of troops in Afghanistan,” said a statement. As a result, we remain confident that we will report net revenue growth in 2013 with our Inmarsat Global MSS business.”