Viasat Reports Record Revenue of $2.8B in 2022
Viasat posted record revenue of $2.8 billion in its 2022 fiscal year, up 24% over the prior year. The company logged gains in each of its three business segments, with Commercial Networks and Satellite Services showing the most growth.
The operator provided its full year financial results on May 25, along with an update that the Viasat-3 launch has slightly slipped and is expected to enter service in early 2023.
Satellite Services posted record revenue, overtaking Government Systems as the largest revenue-driver in the company. Satellite Services revenue of $1.2 billion in 2022 was up 37% compared to 2021. Viasat attributed the record growth in-flight connectivity services, the RigNet and EBI acquisitions and fixed broadband growth.
Viasat said in residential broadband, competition is increasing due to improving terrestrial alternatives and government subsidies. “But we believe we will have growth opportunities with new higher speed plans, offering more video streaming, once ViaSat-3 (Americas) enters commercial service – currently targeted for early fourth quarter FY2023.”
For IFC, the company ended the quarter with 1,830 aircraft in service, up about 40% year over year, including installs for new and existing customers and inactive planes returning to service. Viasat expects to have about 2,400 tails in service by the end of fiscal year 2023.
In addition, mobility is growing as a portion of Satellite Services revenue. In 2021, it was just 12%, and grew to 35% of segment revenue in 2022, compared to U.S. fixed broadband.
Revenue in the Government Systems segment was slightly up from 2021. The segment reported $1.087 billion in revenue in 2022, compared to 1.066 billion in 2021. Viasat said this segment has been “treading water” due to effects of the pandemic, but the company expects roughly double-digit revenue and orders growth in fiscal year 2023.
Viasat highlighted opportunities for Government Systems in 2023 in government space hardware and services, expanded cybersecurity products and services, and networking solutions for Joint All Domain Command and Control (JADC2) and defense 5G networks.
Revenue in the Commercial Networks segment grew 60% in 2022, driven by advanced ground antenna systems and commercial air IFC terminal deliveries. Vista reported $512 million in Commercial Networks revenue in 2022, compared to $321 million in 2021.
Viasat is working toward the launch of its anticipated first ViaSat-3 satellite, which will cover the Americas. CEO Rick Baldridge said VIasat is now expecting the satellite to enter service around January of 2023, where previously the company was anticipating entry into service by the end of this year. He did not give specifics on the launch window, but said Viasat has a launch window reserved and can shift slightly within that window.
The satellite has completed vacuum extreme temperature testing at Boeing and was completing vacuum chamber testing on Wednesday ahead of integration. “We were pleased to see payload performance better than expected during testing,” Baldridge said.
Viasat is working on ground testing ahead of the launch to make up time to service in the schedule.
“We’re doing some of the testing that we would have normally done on orbit, we’re being able to do that with some of our existing satellites on our ground network,” Baldridge said. “Trying to mitigate a little bit of the impact, and that’s how we get to early next year service.”
In addition, Baldridge said Viasat expects to complete its Inmarsat acquisition by the end of this calendar year. He said VIasat has reached an agreement with the U.K. government to demonstrate its long-term commitment to the country, and has a June 21 date for a special shareholder meeting regarding the transaction.