LONDON May 2 British satellite communications
company Inmarsat said a sudden slowdown in demand from
the U.S. government had hit revenue and profitability in the
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.