13th October 2014
The Share Centre has picked Inmarsat as its share of the week. Investment research manager Sheridan Admans says that the global provider of mobile satellite communications services showed in its half year results in August that it was moving in the right direction, despite challenges.
He says: “The group has been experiencing strong subscriber uptake to its broadband services and reported that it has been a very strong year for its Maritime and Aviation operations.
“Investors will be positive about the group’s announcement regarding a new major initiative to develop a combined satellite and terrestrial network to provide in-flight passenger services across Europe.
“Despite defence spending cuts and the setback of delayed satellite launches impacting revenues, we recommend Inmarsat as a ‘buy’. The company’s dividend yield is attractive for income seekers and we believe its civilian operations have turned a corner with demand for these services offsetting weaker demand in other areas.”