INMARSAT MOVES CLOSER TO IPO DECISION
Inmarsat still plans “to go public before the end of the year,” but exact date hasn’t been decided, company official told us. Official restated public position revealed in FCC filing 6 months ago (CD May 16 p4): “An IPO is very much on the agenda, but we will need to wait until some stability returns to the U.S. markets.” Weak market forced Inmarsat to cancel planned IPOs twice last year. Official said everything now was in place, including FCC license for service to 5 company distributors. Inmarsat also has set Nov. 18 for launch of regional broadband global area network (B-GAN) that will allow high-speed data transmission of up to 144 kbps. Company has signed contracts worth $220 million to lease satellite capacity from Thuraya and terminals from Hughes, official said. He said “interim agreement” with Thuraya would be used until launch of new Inmarsat satellites in 2003 and 2004.
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Company expects to announce 2001 results shortly, but expects increase from 2000 when revenue was $416.9 million. Traffic was up 30-40%, official said, and high-margin data traffic accounted for 40% of revenue. Indian Ocean Region provided bulk of revenue, with Afghanistan war in last quarter providing major boost. Among user categories, maritime remained leading component with 6%, land-based usage 25%, aeronautical sector 5%, leased lines rest.
Middle East telecom operators Etisalat and Saudi Telecom are considering raising stakes in Inmarsat, official said. Companies in Iraq, Iran and Libya collectively own $10 million of Inmarsat, Etisalat 0.5%, Saudi Telecom 0.99%, Iranian operator 0.28%. “Some existing shareholders have liquidated” Inmarsat stakes “partially or in full,” official said: “There is no reason why the likes of Etisalat or other firms from the Gulf can’t raise their shares.” However, “any increase will not come through rights issue,” official said.