Gogo Sees Big Increases in Q3 Revenue
Gogo generated revenues of $217.3 million in the three months to the end of September, an increase of 26 percent compared to the same quarter last year. Service revenue also increased to $160.4 million, up 5 percent from Q3 2017. Equipment revenue increased to $56.9 million, up from $19.5 million in Q3 2017, due to the post-adoption impact of ASC 606. Its net loss for the quarter was just over $37 million, a near 20 percent improvement from the same quarter last year.
The broadband connectivity provider saw solid growth in other key areas we well, as its Business Aviation (BA) segment profit increased to $35.2 million, a dramatic increase of 65 percent from Q3 2017. “Gogo’s third quarter results demonstrated solid financial and operational performance,” said Gogo President and Chief Operating Officer (COO) Oakleigh Thorne. “In our Commercial Aviation (CA) business, we have installed nearly 1,000 2Ku aircraft and strong 2Ku performance is driving customer satisfaction and higher take rates. In our BA segment, strong Avance equipment sales are setting the stage for continued service revenue growth.”
“Strong third quarter Adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of $21.1 million exceeded expectations due largely to strong BA performance, higher CA service revenue, and lower operating expenses as we implement our Integrated Business Plan (IBP) initiatives,” said Gogo Executive Vice President (EVP) and Chief Financial Officer (CFO) Barry Rowan. “We are raising our 2018 Adjusted EBITDA guidance to a range of $45 million to $60 million from the previous range of $35 million to $45 million.”