Viasat has announced its financial results for the fiscal third quarter ended December 31, 2018.
At the close of Q3 the number of commercial aircraft in-service flying with Viasat’s IFC equipment nearly doubled from the prior year period to 1,123 aircraft – an increase of 225 commercial planes or approximately 25% in just one quarter. Viasat expects to install its IFC system on 638 additional commercial aircraft under existing contracts.
Other aviation highlights:
Following the close of the third quarter of fiscal year 2019:
American Airlines and Apple announced free in-flight streaming of Apple Music, available on all Viasat-equipped American Airlines aircraft. This illustrates how airline partners can leverage Viasat’s scalable, high-quality, fast streaming service to create innovative new business models to deliver the most popular internet media and entertainment services directly to passengers’ own devices.
Viasat announced that Neos, the Italian leisure airline, selected Viasat’s high-quality IFC service for its fleet of Boeing 787 Dreamliner aircraft.
Today, Viasat announced an extension of its contract with United Airlines to bring Viasat’s latest generation in-flight entertainment and connectivity (IFEC) system to an additional 34 A319 aircraft that will be joining United’s Airbus fleet in the future.
Viasat will serve as the direct in-flight internet service provider to United for these aircraft, deploying its most advanced IFEC system, in order to provide United Airlines’ customers access to fast, reliable internet connections from the air.
Viasat and Aeromexico announced they expanded their original contract, with Aeromexico executing the option to increase the total number of Viasat-equipped Boeing 737 MAX aircraft from 18 to a total of 60 planes. This award will support Aeromexico in delivering a top-class in-flight Wi-Fi experience across its full fleet of Boeing 737 MAX planes.
Also, Viasat announced an agreement with Boeing Satellite Systems International for construction of the third ViaSat-3 satellite to serve the Asia Pacific region. The company expects the third ViaSat-3 satellite, when coupled with the other two ViaSat-3 class satellites under construction, will be able to deliver affordable connectivity worldwide.
Viasat’s fiscal year 2019 third quarter revenues of $554.7 million rose 45% year-over-year and 7% sequentially, driven by exceptional performance that resulted in revenue records across all three segments
Net loss for the quarter decreased $14.2 million or 58% year-over-year and sequentially by $15.3 million or 60%, to $10.4 million reflecting significant improvement in operating profits, which totaled $6.0 million for the quarter
Mark Dankberg, Viasat chairman and CEO, said: “We are continuing to execute on our objective of converting prior growth investments in advanced networking capabilities, aviation type approvals, new geographic markets and the ViaSat-2 satellite and network infrastructure into strong revenue and Adjusted EBITDA gains in fiscal year 2019 and beyond.
“Third quarter revenue and Adjusted EBITDA surged as we executed on our substantial new contract awards for our latest generation commercial IFC and government networking products. Many of those product shipments translate directly or indirectly to ongoing services revenue in future periods.
“Satellite services revenues reached record levels on an expanding set of vertical markets, and generated significant earnings gains compared to the prior year period, as well as this fiscal year’s second quarter.
“Record year-to-date new contract awards and a favorable book-to-bill ratio, combined with nascent offerings in attractive growth markets, indicate opportunities for sustained revenue and Adjusted EBITDA growth through the balance of fiscal year 2019, into fiscal year 2020, and beyond.”