Categories Earnings, LATEST, Technology

Gogo posts wider-than-expected Q2 loss

Gogo Inc. (NASDAQ: GOGO) reported a wider loss in the second quarter due to a loss on extinguishment of debt arising from the $925 million debt refinancing. The bottom line missed analysts’ expectations while the top line exceeded consensus estimates. Further, the company maintained its 2019 revenue guidance while raising its adjusted EBITDA forecast.

Net loss was $83.96 million or $1.04 per share, compared to a loss of $37.21 million or $0.47 per share in the previous year quarter. Total revenues declined by 6% to $213.69 million. Analysts had expected a loss of $0.57 per share on revenue of $199.62 million for the second quarter.

Service revenue increased by 9% helped by increased take rates, an increase in aircraft online, and an 11% growth in ATG units online. However, equipment revenue fell by 42% lower 2Ku installations, a shift in mix from airline-directed to turnkey installations, fewer installations under the airline-directed model, and timing delays in the aftermarket channel.

Gogo Q2 earnings review
Photo Courtesy: Gogo / Facebook post

Looking ahead into the full year 2019, the company still expects total revenue in the range of $800 million to $850 million. Adjusted EBITDA outlook is lifted to the range of $105 million to $115 million from the previous range of $90 million to $105 million. Free cash flow is still expected to improve at least $100 million versus 2018. The company still predicts an increase of 400 to 475 in 2Ku aircraft online.

As of June 30, 2019, 2Ku aircraft online reached 1,216, an increase of 109 aircraft in Q2 2019. Gogo had a 2Ku backlog of about 900 aircraft as of June 30, 2019.

For the second quarter, revenue in Commercial Aviation North America fell by 12% year-over-year due to lower equipment revenue in the segment. Revenue in Business Aviation declined by 4% on weak equipment revenue. However, revenue in Commercial Aviation Rest of World increased by 9% as growth in service offset declines in equipment.

Also read: Netease Q2 earnings review

Gogo completed a $925 million debt refinancing to lower borrowing costs and extend debt maturities, including the repurchase of $159 million of the company’s 3.75% convertible senior notes due 2020.

According to Owler, Gogo is ranked fifth among the top 10 competitors in the inflight wireless telecom services sector. The top ten competitors are ViaSat, Inmarsat, Intelsat, Comcast, Satcom Direct, Harris CapRock, Hughes, Eutelsat, Satellogic and VT iDirect.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

AVGO Earnings: Broadcom Q2 2024 revenue and profit beat estimates

Semiconductor company Broadcom, Inc. (NASDAQ: AVGO) on Wednesday reported higher second-quarter revenues and adjusted earnings. The results also topped analysts' expectations. Earnings, excluding non-recurring items, came in at $10.96 per

Key takeaways from Oracle’s (ORCL) Q4 2024 earnings report

Oracle Corporation’s (NYSE: ORCL) stock rallied this week after the company announced large cloud infrastructure deals with tech giants Google, OpenAI, and Microsoft. The demand for Oracle's generative AI infrastructure

ZDGE Earnings: Zedge reports higher revenues and adj. profit for Q3 2024

Content distribution platform Zedge, Inc. (NYSE American: ZDGE) has reported higher net income for the third quarter of 2024, on an adjusted basis. The bottom line benefitted from a double-digit

Comments

  1. Pingback: Fikry Group Ford
  2. Pingback: Economics
  3. Pingback: Graduation project
  4. Pingback: fue
  5. Pingback: Spectrophotometer
  6. Pingback: Orthodontics
  7. Pingback: student projects
  8. Pingback: MBA
  9. Pingback: controsoffitto led
  10. Pingback: Fiverr Earn
  11. Pingback: Fiverr Earn
  12. Pingback: Fiverr Earn
  13. Pingback: fiverrearn.com
  14. Pingback: shipping broker
  15. Pingback: TMS System
  16. Pingback: clima de hoy
  17. Pingback: fiverrearn.com
  18. Pingback: french bulldog
  19. Pingback: isla mahara
  20. Pingback: brindle frenchie
  21. Pingback: best Samsung
  22. Pingback: future university
  23. Pingback: future university
  24. Pingback: Lean
  25. Pingback: Warranty
  26. Pingback: FUE
  27. Pingback: FUE
  28. Pingback: FUE
  29. Pingback: Storage solutions
  30. Pingback: Classic Books 500
  31. Pingback: FiverrEarn
  32. Pingback: FiverrEarn
  33. Pingback: Streamer
  34. Pingback: FiverrEarn
  35. Pingback: partners
  36. Pingback: Social Justice
  37. Pingback: Tips
  38. Pingback: FiverrEarn
  39. Pingback: FiverrEarn
  40. Pingback: FiverrEarn
  41. Pingback: FiverrEarn
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: FiverrEarn
  46. Pingback: FiverrEarn
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: wix website
  53. Pingback: solar
  54. Pingback: cheap sex cams
  55. Pingback: fullersears.com
  56. Pingback: fullersears.com
  57. Pingback: live sex cams
  58. Pingback: frt trigger
  59. Pingback: 늑대닷컴
  60. Pingback: Slot online
  61. Pingback: nang delivery
  62. Pingback: allgame
  63. Pingback: 918kiss
  64. Pingback: หวย24
  65. Pingback: Skincare
  66. Pingback: pg slot
  67. Pingback: AI Attorney
  68. Pingback: cybersécurité
  69. Pingback: megagame
  70. Pingback: 44 mag ammo
  71. Pingback: itsMasum.Com
  72. Pingback: itsMasum.Com
  73. Pingback: Plombier Tours
  74. Pingback: itsmasum.com
  75. Pingback: chat free
  76. Pingback: joker gaming
  77. Pingback: newyorkcareerhub
  78. Pingback: london jobs career
  79. Pingback: warsaw jobs
  80. Pingback: shenzhen jobs

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top