Globalstar Revenue Up 19% in 2022, Apple Loans Operator $252M to Finance Constellation
A view of Globalstar offices. Photo credit: Globalstar
Globalstar’s revenue increased 19% in 2022 compared to 2021, and the operator said transformation over the past year sets Globalstar up for success moving forward.
Globalstar announced a deal in 2022 to serve as the satellite provider for Apple’s emergency messaging service on iPhone 14 phones. Apple designed the iPhone 14 to communicate directly with Globalstar satellites for emergency messaging, and Globalstar agreed to allocate 85% of its current and future network capacity to support the services and to prioritize the services on its network.
Apple is prepaying Globalstar $252 million to fund 17 new satellites from MDA, Globalstar said in filings with the Securities and Exchange Commission on Feb. 28. This amends the previously announced partnership agreement and replaces Globalstar’s requirement to raise third-party financing for part of the cost of the constellation. Apple will recoup the payment from the services Globalstar provides.
Globalstar released its 2022 financial results on March 1, reporting revenue of $148.5 million for the full year, an increase of 19% compared to 2021, driven by higher service revenue from the Apple agreement.
Net loss was $256.9 million for 2022, compared to $112.6 million for 2021 due primarily to non-cash charges for abandoning second-generation Duplex assets. Globalstar said it would no longer support second-generation Duplex services because the revenue generated did not justify the capacity required.
Globalstar CEO David Kagan said the company expects to continue revenue growth and Adjusted EBITDA, growing as a telecom infrastructure provider in wholesale, legacy, IoT,a nd terrestrial spectrum.
“The events of 2022 altered the trajectory of Globalstar’s future in a profound way for our shareholders, lenders, customers, partners, employees and anyone else with a vested interest in Globalstar,” Kagan said. “The business experienced a true transformation over the last 12 months. … Our future is anchored in the value generated from these events. With an improved capital structure and accelerating cash flow, Globalstar has never been as well-positioned as it is today to capitalize on the opportunities at hand.”