Viasat Sees 22 Percent Increase in Q1 2019 Revenue
Viasat revealed its financial results for the fiscal First Quarter (Q1) 2019, ended June 30. The company saw healthy overall growth, especially from its In-Flight Connectivity (IFC) service. Total revenues were reported at $537 million, a 22 percent increase compared to Q1 2018. Additionally, adjusted EBITDA for Q1 2o19 was $96.8 million, an increase of 115 percent compared to the same period last year.
Notably, Viasat’s Satellite Services segment reached a new revenue high at $196.8 million. Key trends for the quarter include: Average Revenue Per User (ARPU) growth resulting from higher value residential and enterprise plans, driving record U.S. fixed broadband revenues; record revenues in commercial IFC as in-service aircraft increased 76 percent year-over-year and in-flight services expanded; and international growth in fixed residential service, expanded Community Wi-Fi hotspots, and enterprise services. Additionally, the company’s Government Services segment grew year-over-year by 37 percent to $261.2 million.
“We’re very pleased to report a robust start to fiscal year 2020,” said Mark Dankberg, Viasat chairman and CEO. “Our fiscal year 2020 financial outlook benefits from, and builds on, the momentum from a record fiscal year 2019. Broadband satellite services set quarterly records powered by sustained demand for higher value residential service plans, and 76 percent year-over-year growth in active commercial aircraft using our in-flight connectivity systems. Broadband service revenue also continues to diversify, boosted by growth in nascent vertical markets and geographic expansion. Government systems revenues jumped 37 percent compared to last year, and maintains a compelling growth outlook for products and services with robust new contracts and delivery order agreements. Company-wide Adjusted EBITDA of $96.8 million, up 115 percent compared to the same quarter last year, yielded lower net leverage even as capital investments in the ViaSat-3 network continued apace. We’re augmenting investments in ViaSat-3 space and ground infrastructure with prudent early market entry strategies that we believe create long-term global growth opportunities beyond the regional surge we’re enjoying now catalyzed by ViaSat-2.”