(Alliance News) - Inmarsat PLC said Wednesday its profit fell in the third quarter due to a lack of revenue contribution from US communication group Ligado
The satellite communications firm said its revenue decreased 11% to USD327.3 million in the three months to September 30 from USD369.3 million in the third quarter of 2018, reflecting the cessation of payments from Ligado and a 5% decline in maritime revenue.
As a result, profit before tax dropped 84% to USD36.1 million from USD227.7 million a year before.
"Should Ligado obtain its [US] Federal Communications Commission license modification during the fourth quarter of 2019, payments are contracted to resume from such date," Inmarsat said. Otherwise, payments are contracted to resume from the beginning of 2020.
The company said it "has not recognized any material revenue from Ligado due in respect of 2019 given the level of uncertainty of collection of those monies".
Inmarsat sad a court hearing to sanction the proposed takeover of the company is scheduled for November 28 and 29.
Inmarsat in March agreed to a GBP3.4 billion takeover by a consortium including private equity firm Apax Partners LLP, Warburg Pincus International LLC, the Ontario Teachers' Pension Plan Board, and the Canada Pension Plan Investment Board.
Chief Executive Officer Rupert Pearce said: "Inmarsat produced a solid performance in the quarter, supported by our diversified growth portfolio, as we remain focused on growing market share in our target markets."
Inmarsat shares were up 0.2% in London at 557.00 pence each on Wednesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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