British satellite telco Inmarsat felt its share price come back down to earth this morning as it announced a slow down in profits in the second quarter.
In the second quarter, revenue stood at $371.8m (£284.2m), creeping up five per cent from 2017.
But adjusted after tax profits slid 20.9 per cent to stand at $46.1m for the quarter, down from $58.3m the same time last year.
Inmarsat also released its results for the first half, showing revenue up 4.9 per cent to $712.2m, as adjusted after tax profits were cut by nearly a third (32 per cent) down to $75.2m.
A cut to the dividend was also confirmed by the company, down to 8 cents per share from 21.62 cents per share in 2017.
The company said the declining profits reflected changes in depreciating earnings, financing costs and higher taxation.
Why it’s interesting
Inmarsat shares have suffered recently on the back of a number of set backs.
In June, investors were teased by rival European satellite company Eutelsat declaring they were interested in acquiring the British firm. But just a day later, Eutelsat u-turned as it backed out of buying the company.
It is still courting interest from US comms firm Echostar, who already own a three per cent stake in the business.
Earlier this year the firm faced a brutal shareholder revolt, with 60 per cent voting down the firm’s plans for exec pay.
What Inmarsat said
Rupert Pearce, chief executive said: :
Inmarsat produced a robust set of results for the first half of 2018, delivering against a number of key strategic objectives and maintaining our continued positive operational momentum across a resilient and diversified growth portfolio. This performance highlights the quality of our business and our differentiated market position, which ensured significant market capture gains were achieved across our target end markets in the period. Consequently, we remain well placed to deliver further consistent revenue growth in the short term and to capture significant additional growth opportunities over the medium to long term.
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