Annual Report and Accounts 2010
Inmarsat
Chairman and Chief Executive’s Review
Andrew Sukawaty
Chairman and Chief Executive Officer
We aim to deliver superior shareholder value based on a strategy of pursuing multiple paths to growth. We underpin this by a rigorous focus on customer needs, as well as the ongoing efficiency of our operations, the preservation of our position as market leader, and on a disciplined assessment of the financial returns.
Inmarsat outlook
Our four areas of strategic focus: Customer, operational, industry position and financial continue to drive the business forward.
Customer/Market
We believe the launch of our Global Xpress programme will offer even greater customer choice.
Operational
Our existing broadband services continue to attract new users which will generate growth.
Industry position
Our strategy, staff and partnerships will continue to drive the business forward.
Financial
We expect significant financial benefits from our ATC Cooperation Agreement.
During 2010 we brought to market a new business stream – our handheld satellite phone IsatPhone Pro. We are working to ensure we target opportunities to develop this business opportunity.
We also made a significant decision to invest in building three Ka-band satellites and launching our Global Xpress programme to deliver further revenue opportunities. Although we will have some incremental operating costs for this programme, we don’t expect to see any trend changes in our underlying costs, cash flow and profitability.
Although we expect land mobile and aeronautical revenues to have some volatility, we believe our BGAN and SwiftBroadband services will continue to attract new users and traffic which will drive growth. Balanced with these developments, we expect the ongoing strong growth of FleetBroadband to continue to constrain revenue growth given the lower price of data services as usage levels build.
We expect to see growth in Inmarsat Global MSS revenues during 2011 although believe it will be weighted to the second half of the year. The Group will also have significant financial benefits from the payments received from LightSquared under the Cooperation Agreement.
The professionalism of our employees across the Inmarsat group is a significant contributor to our success as a business. There is a relentless desire to improve what we do – whether through the innovation of our services, how they are delivered and the opportunities to evolve the business further.
We believe our strategy and direction, supported by our worldwide staff and good collaboration with all our partners, will continue to drive the business forward so creating further shareholder value.
ANDREW SUKAWATY
Chairman and Chief Executive Officer