Inmarsat says hit by U.S. Government budget cuts
LONDON May 2 (Reuters) - British satellite communications company Inmarsat said a sudden slowdown in demand from the U.S. government had hit revenue and profitability in the first quarter.
The company, which provides communications to shipping, aircraft and remote locations worldwide, said it would react by addressing the cost base for its U.S. government business unit and by cutting other costs across the group.
Inmarsat posted a 3.7 percent rise in revenue for its core communications business, which includes maritime, to $184.6 million, broadly in line with expectations.
Total revenue, excluding the impact of the end of its LightSquared deal, rose 2.4 percent to $310.8 million and core earnings on the same basis were $154.2 million, down from $157.7 million a year ago.
Analysts were expecting the company to post revenue for its core maritime operations of $183.7 million, total group revenue of $317.9 million and group core earnings of $156.9 million, according to a company-supplied consensus.
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