Q2 2022

Technology leadership and customer growth 

Inmarsat reported today a solid second quarter 2022 with EBITDA¹ up 8% at $210.0 million on revenues up 5% year-on-year to $363.4 million. For the first half of the year, revenue was up 6% and EBITDA¹ a very healthy 9%. These robust results reflect the underlying strength of the company, including its strong position in global mobility communications and good execution in the face of the geopolitical uncertainties and supply chain challenges that continue to impact all industries.

I am pleased that, with this performance, we are able to reiterate our commitment to deliver better revenue and EBITDA¹ for full year 2022 compared to last year. Given the challenging environment, our focus on cost discipline and our work to remain one step ahead of supply chain issues remains unchanged. The recovery in the travel sector continues to provide a tailwind for our Aviation business, which we expect to continue for the remainder of the year, albeit likely not at quite the same pace as we saw this quarter.

Highlights of our business unit performance include: 

• Aviation had an excellent quarter, increasing revenues by 48% year-on-year with robust expansion in all segments. IFC revenue saw remarkable growth of 59% with strength in both connectivity and hardware. Business aviation revenues increased 53%, with aircraft installations up 22% year-on-year. Communication services to the cockpit grew by 20%.
• Maritime delivered its sixth consecutive quarter of year-on-year growth² and ended the period with a record backlog of vessels waiting for the installation of Fleet Xpress (FX). While FX-installed vessels increased 17% since the same quarter last year, we are slightly behind plan for completing installations given new variants of COVID-19, some supply chain issues and vessel availability. Our team is focused on accelerating installations so we can tap the future stream of connectivity revenue.
• Government continues to report record high revenues in our non-US government business, which saw revenues rise by 10% year-on-year. This helped offset a soft second quarter for US Government revenues. Given the balance of risks and opportunities we see, we still expect our US Government business to deliver revenue growth for the full-year.
• Enterprise saw revenues decline 17% as supply chain issues continue to impact this part of the business, and we expect these challenges to continue for the remainder of the year.

In the second half of the year, we will continue to operate these business units with discipline whilst serving customers with innovative technologies. These include the arrival into geostationary orbit of the UK-made I-6 F1, the most sophisticated commercial communications satellite ever built that is planned to enter service in early 2023. Its ‘twin’ I-6 F2 has also completed factory testing, and it is expected to launch in Q1 2023. Both these satellites are core to providing the global backbone of Inmarsat ORCHESTRA, the company’s unique, global, multi-dimensional, dynamic mesh network that will redefine connectivity at scale.

During the second quarter, Viasat shareholders voted overwhelmingly in approval of the company’s acquisition of Inmarsat. We continue to work towards a goal of closing by the end of this year, assuming all regulatory approvals are obtained. We are making strong progress with regulatory reviews and are pleased to have received clearance from the Committee on Foreign Investment in the United States (CFIUS) in July. Industry observers will have seen the recent announcement from two of our large competitors that they intend to combine. The industry consolidation that we have long predicted is well underway, further validating the rationale for the Viasat/Inmarsat consolidation.

With thanks and warm regards,

Rajeev Suri
CEO

¹ Excluding Viasat transaction costs

² Excluding the one-off uplift from Speedcast transaction in Q1 2021