LONDON (Alliance News) - FTSE 100 satellite communications provider Inmarsat PLC proposed an increased dividend for 2015 as it reported a small fall in pretax profit for the year, and outlined expectations for revenue growth in the coming year.
Inmarsat reported pretax profit of USD338.0 million, down slightly from USD342.3 million in 2014, as revenue slipped a little to USD1.27 billion from USD1.29 billion. On an adjusted basis, stripping out USD10.8 million in revenue in 2014 from energy-related assets that were sold, revenue was mostly flat.
Inmarsat proposed a final dividend of 31.78 cents per share, taking its total dividend for the year to 51.39 cents, up 5% from 48.49 cents a year before.
The company said that its medium-term outlook remains encouraging, but said the underlying trading environment in 2016 is expected to be broadly similar to what it saw in 2015.
Inmarsat said that, as a result of the introduction of its new Global Xpress satellite services, it expects revenue to be between USD1.23 billion and USD1.30 billion in 2016, and to increase to USD1.45 billion to USD1.60 billion in 2018.
It expects capital expenditure to be within the range of USD500 million to USD600 million in each of the next three years.
Inmarsat launched its third Global Xpress satellite in August, and plans to launch its fourth satellite in the latter half of 2016. This fourth satellite is currently completing construction and testing in California, and Inmarsat said it is "still exploring a number of different orbital slots and related business opportunities and expected revenues for this satellite."
It is still targeting annual revenue for its Global Xpress satellites of USD500 million by the end of 2020.
"2015 has been another year of solid achievement during a period of transition as we bring our Global Xpress services to market and establish our new European Aviation Network. We have been equal to the challenges of some very difficult market conditions whilst putting in place the foundations for an exciting future with higher growth and a more diversified business," said Chief Executive Officer Rupert Pearce in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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