ViaSat Reports Third Quarter Fiscal Year 2017 Results

ViaSat HQ. Photo: ViaSat.

ViaSat has reported the results for its third quarter fiscal year 2017. The year-to-date numbers marked multiple new records including record contract awards of $1.3 billion, revenues of $1.1 billion, and adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of $257.3 million.

Net income for year-to-date results were essentially flat year-over-year, despite the $34.2 million year-over-year increase in Research and Development (R&D) investments. Fiscal third quarter revenue was up 9 percent, driven by increased bandwidth demand for residential broadband, commercial in-flight internet and government mobility services.

The company’s satellite services segment reached record revenue level for the sixth consecutive quarter at $160.1 million, with a 60 percent increase in operating profit and adjusted EBITDA margins of 48 percent. Its government systems segment also continued to achieve double-digit revenue growth.

At the close of the third quarter of fiscal year 2017, ViaSat reported its in-flight internet service was deployed on 555 commercial aircraft currently in service with an install backlog of more than 750 aircraft from domestic and international airlines.

Furthermore, construction of the ViaSat-2 satellite is complete and it is now ready to ship with launch scheduled for April 25, 2017, from the Guiana Space Center in French Guiana with Arianespace.

ViaSat and Eutelsat also agreed to close the previously announced joint venture, combining Eutelsat’s current European broadband business with ViaSat’s broadband technologies and consumer Internet Service Provider (ISP) business knowledge. Under the terms of the arrangement, Eutelsat will own 51 percent of an entity that will own and operate Eutelsat’s Ka-Sat satellite and current wholesale broadband business, with ViaSat purchasing a 49 percent interest for approximately 132.5 million euros ($140.5 million) in cash. A second entity to be 51 percent owned by ViaSat and 49 percent owned by Eutelsat will purchase wholesale Ka-Sat satellite-based capacity to offer retail broadband internet services in the European region. Both entities will be headquartered in Lausanne, Switzerland.

Additionally, ViaSat and Eutelsat expect to add the ViaSat-3 class satellite currently under construction for the Europe, Middle East and Africa (EMEA) region to the partnering arrangement later this calendar year after concluding final legal and business terms.