Globalstar First Quarter Revenue Up 4 Percent YoY

Globalstar Chairman and CEO Jay Monroe rings the Opening Bell at The New York Stock Exchange on April 21, 2014 in New York City. Photo: Dario Cantatore/NYSE Euronext

[Via Satellite 05-09-2016] Globalstar reported $21.8 million in total revenue for the first quarter of 2016, up 4 percent from first quarter 2015’s $21 million. The company attributed the increase to higher service revenue resulting from 6 percent growth in its ending subscriber base, offset partially by a decrease in revenue generated from equipment sales.

The continued shift to a larger percentage of revenue from service revenue, which has a higher margin, and away from equipment sales revenue, is contributing to increasing Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), according to Globastar. The company’s Adjusted EBITDA increased 58 percent to $4.9 million from $3.1 million for the quarters ended March 31, 2016 and 2015, respectively.

Globalstar said the continued appreciation of the U.S. dollar during the first quarter of 2016 negatively impacted revenue coming from international subsidiaries. Total revenue would have increased by $1.3 million, or 6 percent, if there had been no change in foreign exchange rates from the first quarter of 2015, according to the company.