— Global Eagle Entertainment Inc. (NASDAQ: ENT) reported a fourth-quarter 2019 loss of $0.39 per share versus a loss of $0.34 per share expected.
— Revenue rose by 1.4% year-over-year to $163 million versus $165.05 million expected. This was driven by a 26.3% growth in connectivity equipment revenue from increased aircraft installations.
— Gross margin improved 4.6 percentage points driven by the activation of additional aircraft on its network, growth in services to cruise markets, and improved management of network costs.
— The company is implementing its previously disclosed phase 3 cost initiatives in the first half of 2020. Phase 3 initiatives will target business process reengineering and procurement initiatives. Phase 3 is expected to generate more than $10 million of additional savings during 2020.
— The company expects the Boeing 737 MAX aircraft in its fleet of connected aircraft to resume normal operations in the second half of 2020. The company’s MAX-connected aircraft remained grounded during the fourth quarter due to regulatory actions.
— Global Eagle continues to forecast that MAX program issues will impact services revenue, including both Connectivity and Media & Content revenue, by about $3 million per quarter, with an Adjusted EBITDA impact of about $2 million per quarter.
— Due to the production halt of the aircraft, the company expects between 10 and 15 fewer aircraft installations per quarter. The impact on equipment revenue is expected to be about $4-5 million per quarter with a gross margin impact of around 20%.
— Due to limited data, the company believes that it is too early to quantify the impact of the Covid-19 outbreak on the travel industry, its operations or its financial performance.
The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is
The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with
The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax