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.

Other posts by Chris Forrester:

1. Rivada visits Terran Orbital’s manufacturing HQ
2. Avanti wins spectrum debt obligation case
3. SpaceX breaks records for re-use launchers
4. IRIS2 already in trouble?
5. Intelsat contemplates next steps
6. SpaceX: 2.7m customers and $180bn value
7. Boeing, Virgin Galactic in court battle
8. Jupiter-3 a changemaker
9. Terran Orbital is again Compliant

Categories: Blogs, Business, Inside Satellite