UPDATE 2-Inmarsat says year results to beat expectations

(Adds more CEO, analyst comment, detail, shares)

By John Bowker

LONDON, Aug 7 (Reuters) - British-based satellite operator Inmarsat Plc ISAT.L said on Tuesday it would beat its previous expectations for the full year after first-half revenue came in 15.6 percent higher at $284.2 million.

The company, whose satellites cover the whole of the Earth's landmass, said it would beat initial guidance of around 8 percent growth after nearly doubling that pace for two straight quarters.

"Q1 also had very strong results, but we were cautious ... (but) we had a record-breaking second quarter for revenue and maintained strong growth trends across our business sectors," Chief Executive Andrew Sukawaty told reporters.

However he later told Reuters that the firm was still "a bit cautious" for the second half due to the impact of discounts related to its wholesale business model.

"There will be more discounts kicking in for the second half," he said in a telephone interview.

The company generates sales from shipping and land customers needing satellite signals in remote parts of the globe but must channel the business through independent distributors.

Dresdner Kleinwort analyst John Davies said he was likely to upgrade his forecasts but had yet to make the move.

"They're fine -- the only thing is they don't quantify how much better (the end results will be). A range would be more helpful than just 'higher'," he said.

Shares in the firm were up 2.7 percent at 425.25 pence at 0846 GMT, valuing the group at about 1.9 billion pounds ($3.9 billion), after earlier rising as much as 5.7 percent to an all-time high.

The interim dividend was raised 8.3 percent to 11.55 cents per share.

Inmarsat said last month it had launched its new handheld satellite phone in Asia, and Sukawaty said he was targeting a global launch by the end of 2008.

"We are not giving forecasts, but we are aiming for 10 percent of the market by 2010, so that would be 50,000 to 70,000 units," he said.

Another avenue for growth will be the likely introduction of airborne calls, with airlines Ryanair (RYA.I) and Emirates the first to announce their support for the service.

"Other airlines don't want to announce it yet ... we don't expect any revenues this year and only a slow build next year," Sukawaty said.