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Inmarsat plc Reports Full Year Results 2008

March 12, 2009

LONDON, March 12 /PRNewswire-FirstCall/ — Inmarsat plc (LSE: ISAT), the
leading provider of global mobile satellite communications services, today
reported consolidated financial results for the year ended 31 December 2008.

These consolidated results for Inmarsat plc include the financial results
of CIP UK Holdings Limited and its subsidiaries, including Stratos Global
Corporation (“CIP”) for the year ended 31 December 2008. Please note that
where we refer to “Inmarsat Core” we include only the results of Inmarsat plc
and subsidiaries and exclude CIP.

    Inmarsat plc - Full Year 2008 Highlights

    - Total revenue $996.7 million (2007: $576.5 million)

    - Inmarsat Core revenue up 13.9% to $634.7 million (2007: $557.2 million)

    - EBITDA $531.2 million (2007: $388.1 million)

    - Inmarsat Core EBITDA up 12.5% to $431.6 million (2007: $383.5 million)

    - Profit before tax $193.8 million (2007: $124.7 million)

    - Launch of third Inmarsat-4 satellite completes global broadband
      coverage

    - Final dividend increased by 5.0% to 18.20 cents (US$) per share

    Inmarsat Holdings Limited - Q4 2008 Highlights

    - Q4 revenue up 20.4% to $160.6 million (2007: $133.4 million)

    - Q4 EBITDA up 18.7% to $101.4 million (2007: $85.4 million)

    - Q4 BGAN revenue up 78% to $20.1 million

Andrew Sukawaty, Inmarsat’s Chairman and Chief Executive Officer said,
“In 2008 we saw sustained growth across all our market sectors and have
delivered results well ahead of market expectations. The successful launch of
our third Inmarsat-4 satellite completes global coverage for our broadband
services and places us in a strong position to continue our growth while at
the same time our capital needs will reduce substantially. Despite global
economic uncertainty, Inmarsat Core trading results since the start of the
year have been positive and we remain cautiously optimistic that we can
deliver solid revenue growth in 2009.”

Inmarsat Core – Mobile Satellite Services

Increased demand for both our voice and data services contributed to
growth in maritime sector revenue of 7.2% year over year. Growth in our base
of active maritime terminals was up 5.8% for the year, including growth of
36.7% in our base of active Fleet and FleetBroadband terminals. Maritime
industry reaction to our FleetBroadband service continues to be very positive
and in September FleetBroadband was chosen by A.P. Moller Maersk, one of the
world’s largest shipping companies, for a large retrofit programme. During
the fourth quarter we continued to see steady activations of our Fleet
terminals and an acceleration in the activation of FleetBroadband terminals.
Average usage levels on our Inmarsat B and Fleet terminals, which are
predominately used by the shipping industry, remained strong through the
fourth quarter.

In our land mobile sector we recorded revenue growth of 12.7% for the
year. This performance was driven by continued growth of our BGAN service,
which continues to attract new users to our network and drive higher usage
levels across our user base. Our base of active land mobile terminals was up
2.3% for the year, while the number of active BGAN terminals was up 75%,
ending the year at 27,635. Adjusting for approximately 1,200 BGAN terminals
that were temporarily used in Brazil during municipal elections, net
additions of BGAN terminals remained at a healthy level in the fourth quarter.

Growth in our aeronautical sector was 45.4% and was the result of
sustained demand and high levels of usage for our Swift 64 service, which
continues to primarily serve government aircraft and business jets. Overall
active aeronautical terminals were up 13.5% year over year. Fourth quarter
additions to our base of active Swift 64 and SwiftBroadband terminals
remained strong and were ahead of additions in the third quarter. A number of
SwiftBroadband terminals have now been deployed by airlines to offer
in-flight connectivity services to passengers. Most recently, on 19 February
2009
, Ryanair launched in-flight mobile phone services on 20 of its aircraft.
We believe in-flight passenger connectivity is a promising future market
opportunity.

Following a very successful year for signing new leases and for existing
contract renewals, revenue from our leasing business grew 20.4% year over
year.

Liquidity

We believe our liquidity position is strong and that we are well
positioned relative to current market conditions. At 31 December 2008, the
Inmarsat plc group (including CIP) had net borrowings of $1,443.8 million,
including cash and cash equivalents of $156.4 million. Inmarsat Core had net
borrowings of $1,244.7 million, including cash of $51.4 million. Inmarsat
Core also had a revolving credit facility with an amount available but
undrawn at the end of the year of $160 million.

Outlook for Inmarsat Core

The positive trends in all our business sectors have been maintained in
the early trading results for 2009. In particular, we have not yet seen a
material impact on the overall performance of our maritime sector as a result
of global economic slowdown. In addition, as we have a significant proportion
of our revenue from government customers and as commercial customers tend to
have a high degree of day-to-day reliance on our services, we believe our
business is well positioned against economic downturn. As a result, we are
cautiously optimistic that our business will continue to show solid revenue
growth in 2009.

Allowing for the movement of around $45 million of capital expenditure
deferred from 2008 to 2009, we expect our cash capital expenditure in 2009
will be in a range of $150 to $160 million (excluding deferred satellite
payments) and will primarily fund our investments in Alphasat and Global
Satellite Phone Services.

In April 2009 we expect to exercise a call option to complete the
acquisition of Stratos Global and we are optimistic about the prospects for
the enlarged group. There is no financing or material funding requirement in
connection with exercising the call option or completing the acquisition.

The outlook provided here for Inmarsat Core should not be taken to
incorporate or reflect the prospects for CIP.

Other Information

A webcast recording of our analyst presentation to be held on 12 March at
9:30am will be posted to our website after the event. To access the webcast
please go to the investor relations section of our website at
www.inmarsat.com. Inmarsat management will also host a conference call on
Thursday, 12 March at 2:00pmLondon time (United States10:00am EST). To
access the call, please dial +44(0)20-7162-0025 and enter the access code
826268. A recording of the call will be available for one week after the
event. To access the recording please dial +44(0)20-7031-4064 and enter the
access code 826268.

2008 Results for Inmarsat Holdings Limited and Inmarsat Group Limited

Inmarsat Holdings Limited, through its subsidiary Inmarsat Finance II
plc, is the issuer of $450.0 million of 10.375% Senior Discount Notes due
2012. Inmarsat Group Limited, through its subsidiary Inmarsat Finance plc, is
the issuer of $310.4 million of 7.625% Senior Notes due 2012. Inmarsat
Holdings Limited and Inmarsat Group Limited will report full year 2008
results on Form 20-F and expect to file these reports with the SEC on or
around 29 April 2009.

To assist analysts and investors in their understanding of the results
announced today, the following unaudited financial tables for the fourth
quarter are provided for Inmarsat Holdings Limited, prepared in accordance
with IFRS.

    Inmarsat Holdings Limited

    Revenue Breakdown (unaudited)     Fourth quarter ended December
                                                      31,
                                          2008       2007         %
                                                          Difference
    Revenues                                (US$ in millions)
    Maritime sector:
    voice services                        26.3       25.6        2.7%
    data services                         56.6       49.9       13.4%
    Total maritime sector
    Land mobile sector:                   82.9       75.5        9.8%
    voice services                         2.6        3.5     (25.7%)
    data services                         32.3       24.9       29.7%
    Total land mobile sector              34.9       28.4       22.9%
    Aeronautical sector                   18.2       11.9       52.9%
    Leasing                               21.2       14.7       44.2%
    Total mobile satellite
    communications services              157.2      130.5       20.5%
    Other income                           3.4        2.9       17.2%
    Total revenue                        160.6      133.4       20.4%

    Inmarsat Holdings Limited

    Net Operating Costs             Fourth quarter ended December
    (unaudited)                                     31,
                                        2008       2007       % Difference
                                          (US$ in millions)
    Employee benefit costs              23.7        26.3            (9.9%)
    Network and satellite
    operations costs                    11.0         8.7             26.4%
    Other operating costs               31.2        18.8             66.0%
    Work performed by the Group        (6.7)       (5.8)             15.5%
    and capitalised
    Total net operating costs           59.2        48.0             23.3%

Forward-looking Statements

Certain statements in this announcement constitute “forward-looking
statements” within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve risks,
uncertainties and other factors that may cause our actual results,
performance or achievements, or industry results, to be materially different
from those projected in the forward-looking statements. These factors
include: general economic and business conditions; changes in technology;
timing or delay in signing, commencement, implementation and performance of
programmes, or the delivery of products or services under them; structural
change in the satellite industry; relationships with customers; competition;
and ability to attract personnel. You are cautioned not to rely on these
forward-looking statements, which speak only as of the date of this
announcement. We undertake no obligation to update or revise any
forward-looking statement to reflect any change in our expectations or any
change in events, conditions or circumstances.

SOURCE Inmarsat plc


Source: newswire



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