LONDON (Alliance News) - Takeover target Inmarsat PLC on Wednesday said it slipped to a first-quarter loss as charges mounted, but the firm remains confident in its prospects as underlying performance strengthened.
For the three months ended March, the satellite telecommunications firm sank to a USD266.9 million pretax loss from a profit of USD56.0 million a year prior. This was despite revenue rising 0.4% to USD346.9 million from USD345.4 million a year before.
Profit performance was primarily hurt by a USD273.7 million fair value impairment on a convertible bond issued in 2016 and due in 2023.
Earnings before interest, taxes, depreciation and amortisation narrowed 13% to USD152.4 million from USD174.9 million a year prior. This was primarily due to a rise in operating costs to USD89.5 million from USD52.3 million a year before.
Inmarsat remained "confident" about its prospects. The firm expects 2019 revenue to be between USD1.30 billion and USD1.40 billion, compared to USD1.47 billion in 2018. The firm is targeting average mid-single digit annual revenue growth for the years between 2018 and 2022.
"Inmarsat produced a strong underlying performance during the first quarter of the year, building on the positive momentum achieved during 2018," Inmarsat Chief Executive Officer Rupert Pearce said. "We continue to successfully build and aggressively defend market share in our target markets, supported by our diversified product portfolio, enabling the business to capitalise on the significant growth opportunities in these markets."
In March, Inmarsat agreed a USD3.4 billion takeover offer from a consortium led by UK private equity firm Apax Partners LLP.
The Apax consortium - which includes Warburg Pincus International LLC, the Ontario Teachers' Pension Plan Board, and the Canada Pension Plan Investment Board - made a USD7.21 per share offer for the FTSE 250-listed firm.
Inmarsat explained the takeover offer will face a shareholder vote on Friday next week. The transaction is expected to complete in the fourth quarter of 2019.
Shares in Inmarsat were 0.8% lower at 541.00 pence on Wednesday.
