Gogo now has 2Ku inflight connectivity flying on 416 aircraft

Gogo's "2Ku" dual Ku-band antenna.
Gogo’s “2Ku” dual Ku-band antenna.

Gogo’s third quarter 2017 financial results show that its 2Ku awards now exceed 1,900 aircraft across 14 airlines, with the inflight connectivity system installed on 416 of them.

As of October 31 2017, Gogo says that it has installed 322 systems in 2017 alone.

The results show that it declared a quarterly revenue of $173 million, up 17% on Q3 2016. However, its net loss increased to $45.3 million, a 36% increase from Q3 2016, and Gogo’s adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased to $13.0 million, down 15% from Q3 2016.

Excluding $4.5 million in charges related to write-downs of legacy product lines and the retirement of Gogo’s test aircraft, net loss increased to $40.8 million and adjusted EBITDA increased to $17.5 million.

Michael Small, Gogo’s President and CEO, said: “With 2Ku installations accelerating, high bandwidth is arriving in North America and globally.

Gogo President and CEO Michael Small.
Gogo President and CEO Michael Small.

“More bandwidth enables us to improve customer experience, engage more users, and offer new products and services.”

Barry Rowan, Gogo’s Executive Vice President and CFO, said: “North American satellite aircraft generated a robust $220,000 in annualized ARPA in our commercial aviation business with take rates increasing across our fleet.

“We expect Adjusted EBITDA to increase substantially in Q4 2017 and in 2018 as we execute on our plan.”

Speaking at this week’s AeroConnect 2017 conference in London, Greg Oliveau, International Business Development, Gogo, said: “We have one 2Ku installation starting every eight hours.

“And 2Ku is providing 15+ Mbps per passenger with 98% availability and 98% global flight hour coverage.

“We are now at 70Mbps with HTS satellites and will be up to 100+Mbps in quarter four 2017. This will extend to 200+ Mbps by 2020.

“We have 50+ Gbps dedicated to aeronautical services now and that will extend to 100+ Gbps in 2018,” he said.

Other highlights:

Commercial Aviation – North America (CA-NA)

  • CA-NA aircraft online increased to more than 2,800 aircraft in the quarter, of which approximately 9% utilise the satellite network.
  • Aircraft online reached 2,817, up 188 aircraft from September 30, 2016.
  • As of September 30, 2017, CA-NA had approximately 900 awarded but not yet installed 2Ku aircraft of which 100 are net new aircraft.
  • The passenger take rate reached 7.5%, up from 6.5% in Q3 2016 driven by an increase in passenger engagement from airline and third party paid offerings.
  • Total revenue increased to $95.7 million, up 6% from Q3 2016, driven primarily by more aircraft online.
  • Segment profit increased to $16.0 million, up 10% from Q3 2016, representing a 17% segment profit margin.

Commercial Aviation – Rest of World (CA-ROW)

  • CA-ROW revenue doubled year-over-year for the third quarter in a row and average monthly service revenue per aircraft equivalent (ARPA) grew 30% to approximately $226,000 on an annualised basis as passenger demand continued to grow, with the take rate reaching 13.5% in Q3 2017.
  • Aircraft online reached 352, up 96 aircraft from September 30, 2016. CA-ROW currently has approximately 680 net new 2Ku awarded, but not yet installed aircraft, including the 100 aircraft recently awarded by LATAM Airlines.
  • Total revenue increased to $16.6 million, up 119% from Q3 2016, driven primarily by higher ARPA and an increase in aircraft online.
  • Segment loss increased to $24.1 million from $19.9 million in Q3 2016, but improved by more than $7.0 million from Q2 2017.

Business Aviation (BA)

  • BA service revenue grew 30% year-over-year to $43.2 million with demand continuing to build for Air-to-Ground (ATG) systems across customer segments.
  • In the quarter, BA ATG aircraft online increased to 4,567, up 15% year-over-year with ATG average monthly ARPA rising 13% to $2,874. As of September 30, 2017, BA had more than 10,000 narrowband satellite and ATG systems online.
  • Equipment revenue increased to $17.3 million, up 11% from Q3 2016.
  • Total segment revenue increased to $60.5 million, up 24% from Q3 2016.
  • Segment profit increased to $21.3 million, up 3% from Q3 2016, representing a 35% segment profit margin.

Find out more about Gogo’s Q3 2017 results.

Like this feature? Subscribe to our free e-newsletter and get lots more.

You May Also Like