GoGo ‘solid’ Q2
August 12, 2019
By Chris Forrester
Airline broadband and connectivity supplier GoGo reported revenues for Q2 up 9 per cent to $173 million (€193m), and EBITDA rising to $37.8 million (from $18.9m in the same period last year).
“Gogo delivered a solid second quarter, driven by strong underlying service revenue, operational execution and successful implementation of cost controls, including lower than expected satcom expense,” said Oakleigh Thorne, Gogo’s President/CEO. “Following our excellent second quarter financial performance, we are again raising our 2019 Adjusted EBITDA guidance.”
The number of aircraft it was serving grew by 81 to 3,134.
GoGo reported that it had renewed its 2Ku service agreement with American Airlines. In May, Delta Airlines conducted a two-week trial of free Wi-Fi on 55 domestic 2Ku daily flights as part of Delta’s evaluation of offering free Wi-Fi to passengers.
During the quarter-year GoGo refinanced $925 million of debt.
The revenue split is still biased in favour of North America, with service revenues up 1 per cent to $96.4 million from 2443 aircraft. The ‘Rest-of-the-World service revenues increased 49 per cent to $22.6 million with the number of aircraft served growing 50 per cent from 459 to 691.