(Sharecast News) - Pre-tax profits at satellite operator Inmarsat slumped in the third quarter as revenue was hit by a pause in payments from US communications company Ligado Networks.
Third-quarter pre-tax profit fell 84.1% to $36.1m, while group revenue declined 11.4% to $327.3m.
Revenue from the maritime segment was down 5% at $128.3m, while aviation and enterprise revenue fell 8.1% and 16.2%, respectively, to $62.7m and $29m. Revenue from Ligado and other tumbled 92.3% to $2.8m, while there was no revenue at all from Ligado, as expected, as payments were paused this year in line with the co-operation agreement between the two.
Group revenue excluding Ligado was down 2.7%.
"Although the company continues to make available spectrum to Ligado, in accordance with the co-operation agreement, the company has not recognised any material revenue from Ligado due in respect of 2019 given the level of uncertainty of collection of those monies," it said.
Chief executive officer Rupert Pearce said: "Inmarsat produced a solid performance in the quarter, supported by our diversified growth portfolio, as we remain focussed on growing market share in our target markets."
Inmarsat agreed in March to be bought by a consortium of investors including Warburg Pincus and Apax Partners.
At 0955 GMT, Inmarsat shares were up 0.2% at 557p.
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