Gogo announces record quarterly revenue of $148 million

Gogo logoGogo has announced a record quarterly revenue of $148m for Q2 2016, up 22% year-on-year on the same period in 2015.

It said service revenue increased to $127.6 million, up 26% from $101.4 million in Q2 2015.

Gogo also announced that it now has its 2Ku system installed on 10 aircraft with three airlines.

“We are very pleased to announce that our next generation 2Ku technology is now flying on Aeromexico, Delta, and Virgin Atlantic aircraft,” said Gogo’s President and CEO Michael Small.

“We are focused on installing our 1,200 2Ku awarded aircraft, continuing our global expansion, and winning new international airlines.”

Small said early results from 2Ku suggests it is outperforming expectations.

Approximately 600 new 2Ku aircraft have been awarded, bringing the total 2Ku aircraft awards to more than 1,200.

In North America, Gogo said the average monthly service revenue per aircraft equivalent, or ARPA, increased to $11,483, up 2% year-over-year, driven primarily by increased passenger usage.

For the rest of the world, total revenue increased to $5.7 million, up 149% from $2.3 million in Q2 2015, driven primarily by an increase in aircraft online and higher revenue per aircraft.

Aircraft online increased to 249, up 12 aircraft from March 31, 2016. This segment had approximately 500 net new awarded but not yet installed aircraft as of June 30, 2016.

ARPA increased to $12,065, up 30% year-over-year, primarily driven by increased passenger usage.

New awards from Delta Air Lines, International Airlines Group and American Airlines have increased total 2Ku awards to more than 1,200.

Gogo’s 2Ku technology enabled Aeromexico to offer its passengers free in-flight streaming of Netflix content.

Delta Private Jets also recently announced it will equip its fleet of more than 70 aircraft with Gogo Biz 4G, which provides in-flight connectivity, Gogo Vision and Gogo Text and Talk and enables real time in-flight applications that include weather and flight tracker.

“We expect 2016 consolidated revenue to be above the midpoint of our guidance range following strong year-to-date financial performance,” said Gogo’s Executive Vice President and CFO, Norman Smagley.

“With more than $500 million of cash on the balance sheet, we are well positioned to more aggressively roll out 2Ku and continue our international expansion.”

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