Viasat has announced its financial results for the fiscal first quarter ended June 30, 2018, showing revenue for the first quarter of fiscal year 2019 was $438.9 million, up 15% year-on-year.
It says the company’s net loss was $34.0 million (Q1 FY18: $9.0m) and adjusted EBITDA was $45.0 million (Q1 FY18: $ 61.2m) respectively.
On the inflight connectivity front, Viasat’s activated 122 new aircraft in the first quarter of fiscal year 2019, ending the quarter with 757 commercial aircraft in service.
Mark Dankberg, Chairman and CEO of Viasat, said: “Our first quarter results signal a promising start toward driving meaningful growth in fiscal year 2019, by capitalising on the service launch of ViaSat-2 and leveraging prior year research and development (R&D) and infrastructure investments.
“All segments contributed to 15% year-over-year revenue growth and even stronger 29% year-over-year new contract awards growth, which together build confidence in sustained or accelerating growth for the fiscal year as a whole.
“Prior investments in network and business infrastructure create the opportunity for significant margin expansion as we accumulate the benefits of growing revenues in residential, IFC, government, Wi-Fi and enterprise broadband services over the course of the fiscal year.”
Subsequent to the end of the first quarter of fiscal year 2019, Viasat expanded its relationship with American Airlines and was selected to outfit 100 new American Airlines Airbus A321neo aircraft with its IFC and Wi-Fi entertainment systems.
Viasat says it will also provide logistics support and network monitoring for its systems on these aircraft. Delivery of these airplanes is expected to begin in early 2019.
It says the anticipated substantial ramp in IFC system installations planned for fiscal year 2019 showed a solid start, with a 33% year-over-year increase in commercial aircraft in service as of June 30, 2018.
Year-over-year segment operating margin and adjusted EBITDA performance reflected higher fixed operating expenses associated with the ViaSat-2 service launch and IFC ramp, as well as sales and marketing costs as the company expanded its highest-speed ViaSat-2 broadband service offerings into new vertical and geographic markets.
The company also expects to install its IFC systems on an additional 854 commercial aircraft under existing contracts, which does not include additional orders obtained subsequent to the close of the first quarter.
Viasat says its in-flight Wi-Fi service usage expanded to more than 3,000 commercial flights per day, and personal electronic device internet sessions approached five million per quarter.
SAS became the first Nordic airline to launch high-speed, high-quality in-flight Wi-Fi using Viasat’s IFC systems.
Viasat also began testing service on the ViaSat-2 mobility network and successfully completed flights through the Caribbean to the coast of South America and across the Atlantic Ocean.
In the first quarter of fiscal year 2019, Viasat says it delivered double the volume of its next-generation IFC systems for commercial aircraft as compared to the fourth quarter of fiscal year 2018, which brought total next-generation IFC system installations to around 200 aircraft across eight commercial airlines.
Embraer also became the first original equipment manufacturer to select Viasat’s next-generation business aviation IFC solution for its Legacy 450 and Legacy 500 executive jets. This agreement marked the first Ka-band IFC line-fit selection for a medium cabin business jet.
It adds ViaSat-3 continued to make strong progress marked by another quarter of reduced development expenses as capital build activities continued.