Inmarsat Q3 earnings up 18.4 percent

By Paul Sandle

LONDON (Reuters) - Satellite communications firm Inmarsat (ISA.L) posted a better-than-expected 18.4 percent rise in third-quarter earnings on Monday, and said it was on track for the year, sending its shares to a four-year high.

The company, whose satellites provide phone and broadband services to ships, aircraft and remote locations worldwide, posted earnings before interest, tax, depreciation and amortisation (EBITDA) of $133 million (79.4 million pounds), helped by cost controls.

Revenue in the three months to end-September rose 8.7 percent to $176.7 million, the firm said, reflecting strong demand in the aeronautical sector and maritime broadband services.

"We are continuing to achieve growth in all our MSS (mobile satellite services) markets despite the economic downturn," Chairman and Chief Executive Andrew Sukawaty said in a statement.

"We are well positioned to deliver on our targets for the full year."

Shares in the group, which have outperformed the European telecoms index .SXKP by 38 percent since the start of the year, were 4.6 percent higher at 622 pence by 9:34 a.m., after earlier touching a more than four-year high of 632 pence.

Investec analyst Jonathan Groocock, who rates the stock a "buy," said tight cost control had helped the firm beat EBITDA estimates, while reduced capital spending had boosted free cash flow -- up 90.6 percent year-on-year.

"Excellent set of figures, they've completely blown away consensus EBITDA in the quarter," he said. Consensus was $121.7 million, he said.