Gogo Earnings, Revenue Beat Expectations
May 06 2016 - 7:20AM
Dow Jones News
Gogo Inc. said revenue climbed in the first quarter, though the
in-flight wireless Internet provider's loss deepened amid increased
spending.
Still, the results beat Wall Street expectations.
Gogo lately has fought hard to fend off competition from rival
ViaSat Inc. Earlier this week, Gogo announced awards with Delta Air
Lines Inc. and International Airlines Group for its faster,
satellite-based 2Ku service. Gogo recently said it would partner
with satellite operator SES SA to provide a major boost for
in-flight connectivity over the U.S., Latin America and the North
Atlantic.
During the first three months of the year, Gogo said it added
service on 113 commercial aircraft, bringing the total number of
aircraft online to 2,500.
The company said its average monthly service revenue per
aircraft in its commercial aviation edged down by about 0.2% in the
first quarter, driven in part by an increase in the number of
regional jets online.
Over all, Gogo posted a loss of $24.1 million, or 31 cents a
share, compared with a year-earlier loss of $20.1 million, or 24
cents a share. Revenue rose 23% to $141.7 million.
Analysts were expecting a loss of 41 cents a share on $138
million in revenue.
Operating expenses climbed 20% to $150.3 million as Gogo
launched new services.
The company backed its forecast for revenue in 2016, projecting
a range of $575 million to $595 million.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
May 06, 2016 08:05 ET (12:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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