Inmarsat Share Discussion Threads

[philanderer] 09/5/2011 23:32

Investec reiterate 'hold' target price 724p

[eipgam] 09/5/2011 19:05

should get some encouraging broker notes as well... encouraging to new buyers I hope.

[philo124] 09/5/2011 08:50

650p seems possible within a few days.

[enami] 09/5/2011 07:45

Looks like a good set of results (although a slight downside with the MSS revenue falling marginally).

XD Wednesday 22.69 cents.

[philo124] 07/5/2011 09:16

Thx 4 reminder. Hold 2000 in Sipp at a loss.

[choppa] 07/5/2011 08:47

Results Monday then.

[enami] 08/4/2011 08:45

Inmarsat started with buy recommendation at RBS, target price 750p

[eipgam] 06/4/2011 21:43

It's worth pasting the whole article from the above link....

The satellite operator's shares are tracking up again.

A shrewd acquisition and purchase of shares by a director have buoyed shares in mobile satellite system operator Inmarsat (LSE: ISAT), which had sunk some 13% after disappointing annual results were revealed last month.

The company was created in 1979 by the International Maritime Organisation to provide ship telephony. Subsequently privatised and floated in 2005, its scope broadened to land and air-based use, but maritime operations remain core to the business.

Inmarsat operates a network of eleven satellites positioned around the globe, providing telecommunications in places where the conventional terrestrial or cellular operators cannot reach: at sea, in remote locations on land, and in aircraft.

40% of revenues come from Stratos, its captive distribution division which provides satellite communications services to end users, with wholesale sales through Inmarsat Global making up the balance.

My colleague Tony Luckett wrote about the company's impressive track record last August, pointing out that the shares have never been cheap. Since that time they have been hit by a couple of negative events which may present a buying opportunity.
Setbacks

Let's examine the recent setbacks first. In October, US hedge fund Harbinger sold a 13% holding in the company's shares. Apart from the obvious negative effect on the market, this squashed any hopes of a bid from that quarter which had put some fizz in the shares since abortive takeover discussions in 2008.

But Inmarsat retains a longer lasting benefit from the association with Harbinger. It had signed a cooperation agreement with Lightsquared, a US wireless operator in Harbinger's stable. Under the agreement Inmarsat and Lightspeed will rationalise their wireless spectrum holdings in the US, with Inmarsat providing bandwidth to Lightspeed in return for revenue payments.
Results

The second setback was a poor market reception to the results for 2010. On the face of it these were good results, continuing the positive track record highlighted by Tony Luckett. Revenues were up 12.9% to $1.2bn, EBITDA up 17%, pre tax profit up 69%, and the dividend was increased by 10% with dividend cover improving to 1.5 times.

But the market had been expecting more. It reacted badly to lower growth in the fourth quarter, and Inmarsat's guidance of growth of 2%-4% in its core market in 2011 against analysts' expectations of 4%-6%. Like its terrestrial equivalents, Inmarsat is facing diminishing high margin voice traffic as users switch to email.
Acquisition

A change in the shares' fortunes was marked last week when the company announced the $160m acquisition of Ship Equip International AS, a Norwegian provider of VSAT maritime communications equipment to the shipping and offshore oil and gas markets.

This looks a clever move to solidify its longer term market position. VSAT -- standing for very small aperture terminal -- is a communications technology for use with small antennae which competes with Inmarsat's services. By integrating it into Inmarsat's plans for a new generation of satellites, planned to go live in 2014, it can offer faster communications to smaller devices.

The company pulled off an acquisition of a different ilk last year when it bought Segovia, a provider of secure IP communications systems to US government agencies, strengthening its relationships in that sector. It is no accident that Inmarsat's board includes a former US navy admiral responsible for strategic command.
Prospects

The longer term outlook still looks good with a number of new initiatives to drive growth:

* Launch of new generation of satellites offering higher bit rates on smaller devices;

* Recent launch of Inmarsat's own hand held satellite device;

* Introduction of mobile communications onto passenger airlines;

* Guaranteed revenues of around $250m from the Lightsquared deal;

* Income from natural disasters and wars in hostile environments which boosts military, government and media use.

On the downside, the balance sheet carries a significant amount of debt. Gearing was 103%. But most debt is in the form of long-term bonds and convertible debt or project finance to fund satellites.

Interest was well covered at 3.6 times and free cash flow, after $180m of capex, was $470m (though higher capex is expected this year). So financial risk is unlikely to get out of hand.

At 623p the shares are trading on a historic P/E of 26, but the prospective P/E is a much cheaper 13. The company has maintained a steadily increasing dividend and anticipates 10% growth next year, and the yield is a decent 3.6%.

At least one non-executive director is confident, doubling his holding with £114,000 worth of shares at 605.5p last week. It is a move that shrewd investors may decide to mimic.

[enami] 01/4/2011 16:27

Aye - barreling up now, short covering as well as new buyers I suspect.

[sruthan] 01/4/2011 15:05

Director Deals - Inmarsat PLC (ISAT)
BFN
John Rennocks, Non Executive Director, bought 18,800 shares in the company on the 31st March 2011 at a price of 605.50p. The Director now holds 33,400 shares.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

[enami] 01/4/2011 13:42

Zipping up after 1300 - I have got a buy signal here.

[chumbo] 31/3/2011 16:15

Sounds like a bit of vertical integration. Anybody have an idea as to the synergies/extra revenue this is likely to bring?

[sruthan] 31/3/2011 11:47

Thursday 31 March, 2011
Inmarsat PLC
Inmarsat to acquire Ship Equip International AS
RNS Number : 9901D
Inmarsat PLC
31 March 2011

Inmarsat to acquire Ship Equip International AS

31 March 2011: Inmarsat plc (LSE: ISAT.L), the world's leading provider of global mobile satellite communications services, today announces the acquisition of Ship Equip International A.S. ("Ship Equip") for a total consideration of USD 159.5 million. Based in Ålesund, Norway, Ship Equip is a leading provider of VSAT maritime communications services to the shipping, offshore oil & gas and fishing markets.

James Parm, President and CEO of Stratos, commented: "We are delighted to welcome Ship Equip and their management team into the Inmarsat group. Ship Equip is ideally positioned to support the evolution of certain segments of the maritime market to higher speed services - especially those to be offered by Inmarsat's revolutionary Global XpressTM programme after its launch in 2013. Ship Equip is the perfect partner for Inmarsat, bringing a large installed base of maritime VSAT customers, who we expect to be in the forefront of the transition to Global Xpress services, and a management team with extensive knowledge of VSAT operations and customers, to help us ensure that Global Xpress is a compelling proposition for the maritime community. This acquisition demonstrates our clear determination to prepare the way for a fast and successful take up of Ka-band services via Inmarsat Global Xpress.''

Ship Equip's expertise in developing and deploying VSAT communications solutions to key verticals in the maritime market, coupled with its worldwide committed capacity arrangements and installed base of over 850 vessels (as at December 2010), have made it a leader in the evolving VSAT maritime communications market. In 2010 Ship Equip generated revenues of USD 56 million (NOK 312 million).

"We are excited to be joining forces with Inmarsat, and we are convinced the combination will be the perfect platform for reaching the next level in satellite broadband maritime services," said Ivar Nesset, CEO of Ship Equip. "This transaction will enhance Ship Equip's standing as one of the largest providers of satellite broadband maritime communications solutions and provide an exciting long-term service proposition for our customers."

Ship Equip is to be acquired by Inmarsat Solutions Limited and will operate as a separate subsidiary alongside the Stratos and Segovia businesses. Closing of the transaction is subject to certain regulatory approvals which are expected to be completed in a matter of weeks. Inmarsat expects to finance the transaction from current available liquidity.

For further information:

Chris McLaughlin

Inmarsat

Mob: [phone]
Email: [e-mail]
This information is provided by RNS
The company news service from the London Stock Exchange

[wig123] 21/3/2011 11:05

nice bounce off the year lows, hopefully regain some composure now.

[ygor705] 18/3/2011 12:42

It seems to me that the share price here bears no relationship to what is going on in the real world - even after the results announcements. With a large disaster in Japan unfolding and a military situation imminent in Libya that we will require careful co-ordination I would think that Inmarsat's prospects must be looking up. We also have new product launches coming onstream.............what do the City barrow boys sitting behind their little black boxes want? Anyway rant over and decent yield while we wait!

[wig123] 10/3/2011 11:57

Seen some flippers in my time, but not many as blatant as on the book this morning. Large orders being moved around on the buy/sell side but only allowing partial fills. Added more today, and agree with Fairman, way overdone.

[fairman] 07/3/2011 15:05

Tend to agree, this looks overdone. Bought a few at just below £6.00

[eipgam] 07/3/2011 13:25

so the S.Times were more or less right.... except the bloody idiots cannot tell the difference between a $ and a £.... halfwits!!

Inmarsat profits fly
StockMarketWire.com
Satellite operator Inmarsat this morning reported profit before tax of $333.5m for the year to end-December 2010, up 69.4% from $196.9m in the previous year.

A final dividend of 22.69 cents will be paid, up 10%.

Total revenue was $1.171bn for the year to end-December 2010, up 12.9% from $1.038bn the prior year.

Inmarsat Global MSS revenue was $727m up 6.5% (2009: $682.8m).

EBITDA was $696.1m, up 17.1% (2009: $594.2m).

Total revenue in Q4 was $292.1m, up 8.4% (2009: $269.4m) and Q4 EBITDA was $171.8m, up 18.2% (2009: $145.3m).

Andrew Sukawaty, Inmarsat's Chairman and CEO, said, "We delivered a strong performance in 2010 with total revenues up 12.9% driven by growth of 6.5% in core MSS revenues and by a second half contribution from our Cooperation Agreement with LightSquared. While a slowdown in growth in the last quarter of 2010 and early 2011 has resulted from lower usage levels for some of our products, continued growth in new terminal activations and positive market reaction to our new services mean that we remain confident in future MSS growth prospects and in our 5-year growth target. In addition, in 2011 we will recognise substantial revenue in connection with our Cooperation Agreement with LightSquared."

[fernando73] 07/3/2011 09:26

just gone long on this one @ £6.07
any views on this very welcome.
thanks in advance guys.

[shoobmeister] 07/3/2011 08:57

I know this company intimately and this price is an abberation.

[wad collector] 07/3/2011 08:43

The early birds..(some earlier than others!)