Yahoo Finance Satellite supplier Inmarsat soars after aviation takes a starring role
Inmarsat chief Rupert Pearce said a shock surge in aviation earnings was a “nice surprise” on Wednesday and bodes well for the satellite firm’s future.
The company’s aviation division, which offers in-flight connectivity for aircraft, saw revenues boom 39% to $56 million (£41 million) because of rising demand from passengers who want to use the internet on board.
Shares surged the most in nearly two years, rising 11% at one point past 400p. “Aviation is growing at a heck of a pace,” Pearce said. “We’re not predicting it will continue but it’s a nice surprise, and we’ll do everything we can to run that business as efficiently as possible.”
The connectivity division could become the group’s biggest earner within five years, he added.
Margins in the division jumped to 60%, beating City expectations of 40%. Group revenue was up 4.8% to nearly $345 million, dented slightly by a 9% fall in government sales after lower bookings from a large contract with Boeing.
