A report from investment bank Jefferies on broadband-by-satellite operator ViaSat, and following on from last week’s Q3/20 results, was positive.
For example, ViaSat’s Satellite Services revenue growth grew 19.2 per cent, although subscriber numbers are – at best – flat at about 580,000 but the company’s subscriber ARPU has grown nicely (+15.1 per cent) and helped by lower churn.
The more positive aspects of its current trading position is that ViaSat has seen a 29 per cent growth in Q3 from new contracts awarded.
Unfortunately, ViaSat is not helped by the continuing delay to the roll-out of Boeing’s troubled 737 MAX aircraft. The bank says: “The impact from delayed installs and rebated service revenue from the grounding of 737 MAX aircraft is now expected to be at the top end of the existing $5-10 million FY20 impact range, with some bleeding into FY21.”
Overall ViaSat’s revenues were up 6 per cent for the quarter-yea (Y-o-Y) at $588 million, but let down by its Commercial Networks division which slumped 33 per cent from $127 million to $85 million.
ViaSat is also predicting considerable growth possibilities once its VS-3 fleet is deployed. The first of these ‘next-generation’ satellites will launch to serve the Americas by mid-2021.