Investors buy in to Inmarsat despite falling profits

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Investors buy in to Inmarsat despite falling profits
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The share price of FTSE 250 satellite communications specialist Inmarsat (LON:ISAT) rose by 5.06% to 419.50p (as of 12:20 GMT) after the company published its results for the year ended 31st December. Revenues climbed by 5.3% following a strong fourth quarter, but post tax profits dropped by 32.4% due to higher depreciation.

CEO Rupert Pearce commented: “Inmarsat delivered consistent growth in 2018, building on our return to growth established in 2017. I am particularly pleased by the 85% revenue growth in GX services and a doubling of our IFC revenues, both of which augur well for the future.

“We remain focused on building and defending substantial market share in our target markets, supported by our diversified product portfolio and leading-edge networks. This will ensure we are able to fully capitalise on both the immediate and longer-term growth opportunities in these markets.

“Supported by a tightly controlled cost base and an infrastructure capital investment programme which we are confident will meaningfully and sustainably moderate from 2021, we expect to generate sustained free cash flow growth over the medium to long term“.

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