Inmarsat — Q1 2019 Earnings Presentation
21 slides from Inmarsat's earnings presentation, May 1, 2019
Slide 1: Q1 2019 results
INMARSAT > Q1 2019 Results Q1 2019 results 1 May 2019
Slide 2: Performance review
INMARSAT > Q1 2019 Results Performance review Rupert Pearce Chief Executive Officer
Slide 3: Operational Review
Operational Review Continued revenue growth ˃ Robust results, building on positive momentum achieved in 2018 ˃ Further success in building and aggressively defending market share − Progress across our diversified growth portfolio − Well placed to capitalise on future growth opportunities ˃ Medium te
Slide 4: Maritime performance
Maritime performance Strong performance in fast-developing market segments Q1 2019 progress Future roadmap Fleet Xpress High level of FX vessels installed Install 5,000+ FX vessel commitments 36% of FX installations were new customers Drive into new non-merchant VSAT segments Aiming to captu
Slide 5: Government performance
Government performance Strong performances across both businesses Q1 2019 progress Future roadmap US business supported by contract wins and expanded Expand footprint in new markets, sectors and niches mandates achieved in 2018 Continued growth in underlying revenues from Boeing ToP Major long term
Slide 6: Aviation IFC performance
Aviation IFC performance Further progress in supporting customers into service Q1 2019 progress Future roadmap c.1,790 aircraft under contract and committed to hardware, Additional contract wins from new business pipeline + c. 300 aircraft under option Further increase in aircraft in service, from 1
Slide 7: Aviation Core performance
Aviation Core performance Continued revenue growth Q1 2019 progress Future roadmap Business and Lower SwiftBroadband revenues, mainly Further roll-out of JetConneX, including General aviation due to customer migrations to JetConneX incremental customer migration from SwiftBroadband c. 475 now
Slide 8: Enterprise performance
Enterprise performance Further foundations built for future IIoT opportunities Q1 2019 progress Future roadmap On-going market pressure on legacy product base Continue to protect revenues of legacy product lines Lower level of satellite phone handset sales Further develop major IIoT partners
Slide 9: 2019 Priorities
2019 Priorities Focused on delivering further growth Organisational Maritime Government Aviation Enterprise Infrastructure Objectives Grow share in VSAT Continue to strengthen Further commercial Progress in building market Further strengthen our global segments, protect & diversify major c
Slide 10: Financial Review
INMARSAT > Q1 2019 Results Financial Review Tony Bates Chief Financial Officer
Slide 11: Group Income statement – Q1 2019
Group Income statement – Q1 2019 $m Q1 2019 Q1 2018 Change $m Excluding Ligado Q1 2019 Q1 2018 Change Revenue 346.9 345.4 1.5 Revenue 346.7 313.3 33.4 Direct costs (66.0) (53.0) (13.0) Direct costs (66.0) (53.0) (13.0) Gross margin 280.9 292.4 (11.5) Gross margin 280.7 260.3 20.4 Indirect costs* (11
Slide 12: Business Unit Summary ($m) – Q1 2019
Business Unit Summary ($m) – Q1 2019 Maritime 2019 2018 Government 2019 2018 Aviation - IFC 2019 2018 Revenue 128.5 142.0 Revenue 100.7 78.3 Revenue 47.0 19.3 Direct Costs (10.4) (22.1) Direct Costs (23.5) (14.2) Direct Costs (24.3) (7.5) Gross Margin 118.1 91.9% 119.9 84.4% Gross Margin 77.2 76.7%
Slide 13: Maritime Q1 results
Maritime Q1 results ˃ VSAT revenue up $8.7m, 23.7%, to $45.4m Q1 Revenue ($m) − Vessels up 42.3%, by 2,001, to 6,727 ˃ Including 6,164 FX vessels, of which 789 were installed in Q1 2019 21.6 15.1 − Further market share gains, with 36% of FX installations being new customers − ARPU down 15.2% to $2,1
Slide 14: Government Q1 results
Government Q1 results Q1 Revenue & EBITDA ($m) ˃ Total Government revenue up $22.4m, 28.6%, to $100.7m ˃ US revenue up 27.9% − New business wins and expanded mandates in 2018 − Increased customer expenditure under existing contracts − Continued increase in underlying revenues on Boeing ToP 100.7 ˃ R
Slide 15: Aviation Q1 results
Aviation Q1 results Q1 Revenue & EBITDA ($m) ˃ Aviation revenue up 53.4% or $29.9m to $85.9m Core IFC ˃ IFC revenues up 143.5% or $27.7m to $47.0m − Equipment revenue up $23.3m to $31.2m driven by significant sales order Revenue EBITDA Revenue EBITDA − $15.7m airtime revenue (including $4.0m GX airt
Slide 16: Enterprise Q1 results
Enterprise Q1 results Q1 Revenue ($m) > Revenue down $4.5m, 13.8%, to $28.2m 7.1 7.1 7.0 6.4 > Satellite phones down 16.3% to $7.7m 4.9 2018 4.7 2019 > BGAN down 9.9% to $6.4m 1.2 3.2 9.2 2.4 7.7 > M2M revenues down 4.1% to $4.7m BGAN GSPS F2M Other FB M2M Other > Fixed to Mobile down 25.0% to $2.4m
Slide 17: Group Cash Flow – Q1 2019
Group Cash Flow – Q1 2019 US$m Q1 2019 Q1 2018 Change EBITDA 152.4 174.9 (22.5) Working capital/non-cash items 45.5 (26.9) 72.4 Operating cash flow 197.9 148.0 49.9 Capital expenditure (81.8) (141.3) 59.5 Interest paid (18.9) (21.5) 2.6 Tax paid (1.0) 1.6 (2.6) Free cash flow 96.2 (13.2) 109.4 Other
Slide 18: Capital Expenditure – Q1 2019
Capital Expenditure – Q1 2019 US$m Q1 2019 Q1 2018 Change Major infrastructure projects 17.6 110.8 93.2 Success-based capex 11.3 55.7 44.4 Other 30.7 26.9 (3.8) Cash flow timing 22.2 (52.1) (74.3) Total cash capital expenditure 81.8 141.3 59.5 Major infrastructure projects: I-5 F5 and I-6 spend sate
Slide 19: Future Guidance unchanged
Future Guidance unchanged 2019 Revenue Medium term revenue, Capex: (excluding Ligado): EBITDA & Free Cash Flow (excluding Ligado): Capex of $500m to $600m pa in 2019 Expected to be between $1,300m and 2020 and $1,400m Targeting mid-single digit % Infrastructure capex to meaningfully increase
Slide 20: Q&A
INMARSAT > Q1 2019 Results Q&A
Slide 21: Forward looking Statements
Q1 2019 Results 1 May 2019 Forward looking Statements This presentation contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual resul