Inmarsat's Q2 earnings edge lower on defence cuts
LONDON Aug 2 (Reuters) - British satellite operator Inmarsat reported a slight dip in second-quarter earnings on Friday as the impact of U.S. defence spending cuts continued to bite.
The company, which provides communications to shipping, aircraft and remote locations worldwide, reported earnings before interest, tax, depreciation and amortisation of $174 million, down from $176 million a year ago.
Sequestration in the United States has hit Inmarsat's Solutions reseller unit, which saw revenues fall to $195.1 million in the quarter from $205.4 million a year ago.
However, revenue in its core maritime business rose by 3.7 percent to $195.9 million, helped by increased take-up and usage of its broadband packages.
Chief Executive Rupert Pearce said that while the contracting environment for Inmarsat's U.S. government business remained challenging, revenue for its other business units grew, and he was satisfied with the overall results.