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March 3, 2016updated 05 Sep 2016 7:46am

Inmarsat share price dips 4% as Global Xpress satellites hit profits

News: 2015 saw the satellite giant double down with two new satellite launches.

By Alexander Sword

Satellite provider Inmarsat saw revenue flat and profits down in a year that saw weak government spending and the launch of two new satellites impact their margins.

Inmarsat’s share price dropped 4.4 percent overnight as communications provider saw after-tax profit down $59.1 million to $282 million.

Its total revenues for the year at $1.274 billion, representing a small drop from the previous year’s $1.275 billion.

Revenues from Inmarsat’s traditional markets were down; the maritime division saw $593.2 million and government saw $286.6 million, falls of 0.4 percent and 10.4 percent respectively.

However, the enterprise, LightSquared and aviation divisions saw revenues up 2.3 percent, 17.5 percent and 25.4 percent respectively.

Revenues for enterprise were $159.5 million, for aviation were $126.8 million and for LightSquared were $88.6 million.

Total revenues for the quarter were up 0.5 percent to $334.8 million.

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Inmarsat’s main landmarks for the year were the successful launch of its second and third I-5 satellites, the F2 and F3.

The constellation will provide the first global broadband network available through a single provider, the Global Xpress network.

The performance of the aviation division, meanwhile, reflects the growing demand for connectivity on airlines.

The satellite giant signed several major partnerships in its bid to create the European Aviation Network, which will provide connectivity to cabins, with major airline contracts inked with Deutsche Lufthansa and Singapore Airlines.

At a more strategic level, a partnership with Deutsche Telekom has been formed in order to create the ground component of the EAN.

"2015 has been another year of solid achievement during a period of transition as we bring our Global Xpress services to market and establish our new European Aviation Network," said CEO Rupert Pearce.

Pearce said that there had been "some very difficult market conditions" but that his company had put in place the "the foundations for an exciting future with higher growth and a more diversified business."

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