Viasat Earnings Stable in FY2021 as Operator Prepares for 2022 ViaSat-3 Launch

Viasat headquarters in Carlsbad, California. Photo: Viasat

Viasat reported stable revenue of $2.3 billion for its 2021 fiscal year, and remains on track to launch the first ViaSat-3 satellite in early calendar year 2022. 

The satellite operator released its 2021 full year results on May 25, reporting that it recently completed payload integration for the first ViaSat-3, and will soon be shipping the payload to Boeing for spacecraft integration and testing. 

Viasat’s 2021 results showed a boost in operating income and net income compared to the year prior. Operating income was $58.2 million, up from $38.4 million in fiscal year 2020. Net income was $3.7 million, up from $200,000 in fiscal year 2020. Revenue was flat Year-over-Year (YoY) at $2.3 billion, repeating last year’s record revenues. 

Consolidated awards hit a new record of $2.7 billion for the fiscal year, bringing Viasat’s backlog to $2.3 billion, 23% higher over the prior fiscal year. 

Government Systems is Viasat’s highest-performing segment, at about $1.1 billion in revenue for the year. This was down 6% compared to the prior year. Viasat expects this segment to return to growth in FY2022, driven by FY2021 awards of $1.2 billion and anticipated normalization of the acquisition process post COVID-19. 

Satellite Services reported $826.6 million in revenue for the year, up 5% compared to the prior year. The company reports 590,000 fixed broadband subscribers, flat from last year. Subscribers reached 603,000 in Q2 2021, but went back down to 590,000 by the close of the fiscal year. Viasat said this segment saw higher revenue despite flat subscriber base because of a higher proportion of customers purchasing premium service plans. 

Commercial Networks is the smallest segment, and reported $320.9 million in revenue, a 7% decrease compared to the prior year. This segment earned record segment awards in the fiscal year, up 52% YoY, including a record $341 million in advanced satellite ground antenna systems

For FY2022, Viasat sees a strong outlook for Satellite Services, especially in In-Flight Connectivity (IFC) and enterprise markets. IFC is expected to benefit from increased air traffic volume with the COVID-19 recovery, the return-to-flight of the Boeing 737-MAX and new customers including Delta and KLM. The operator anticipates anticipate modest revenue growth in fixed broadband, driven by international market expansions in Europe and Brazil, and moderating growth in the U.S. because of capacity constraints.

“With fiscal year 2022 now underway, we are very optimistic about our prospects. Our diverse business is positioned for a strong post-COVID recovery — particularly for IFC. Given our investments in innovation, market share gains, tuck-in acquisitions and overall execution, we are entering FY2022 in a very strong position as we approach the launch of ViaSat-3 Americas and the beginning of an exciting new phase of global growth,” CEO Rick Baldridge said in a letter to shareholders. 

Separately, Viasat also announced the appointment of two new senior executives. Evan Dixon has been promoted to the role of president of Viasat’s Global Fixed Broadband business. He has been acting in this role for a year. Viasat also named Craig Miller as president of Government Systems. Miller was previously the segment’s CTO.