GlobalStar Increases Revenue 13 Percent in Q1 2017

Globalstar Chairman and CEO Jay Monroe rings the opening bell at The New York Stock Exchange. Photo: Dario Cantatore/NYSE Euronext.

GlobalStar reported a total revenue increase of 13 percent to $2.9 million from the first quarter of 2016. Higher service revenue resulting from increased Average Revenue Per User (ARPU) in all major service lines was the primary driver for the growth, according to the company, as well as a slight increase in revenue from subscriber equipment sales.

GlobalStar also reported a 3 percent decrease in operating losses to $15.2 million, despite a $1.4 million increase in cost of services due primarily to high cost of services and Management, General and Administration (MG&A) costs. Additionally, support costs related to Global Star’s second-generation ground network increased $0.4 million.

Service revenue increased 15 percent to $2.8 million, driven by growth in both Spot and Duplex service revenue, which each increased $1.3 million. Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased 23 percent driven primarily by the increase in total revenue.

“We have initiated requests for authority to provide terrestrial services over our 16.5 MHz of licensed 2.4 GHz spectrum in several international jurisdictions,” added Jay Monroe, chairman and Chief Executive Officer (CEO) of Globalstar. “While we cannot discuss the specific countries we are pursuing, we have a strategy and we will update you as we reach milestones toward our goal.”