Viasat Q1: “Accelerating momentum”
August 6, 2021
By Chris Forrester
Broadband satellite operator Viasat of California already has a solid client list for its connectivity, including private customers, businesses and airlines. In reporting its Q1/2022 numbers to (June 30), it says that the gradual and fitful re-opening of the global economy is accelerating the momentum the company achieved in the later stages of FY/2021. “We anticipate that momentum to extend throughout FY/2022.”
Viasat reported record revenues for the quarter-year of $665 million (up 25 per cent) which translated into a net income increase to $17 million from a $12 million loss in the same period a year earlier. the prior year.
The company’s all-important contracted backlog is $2.2 billion, up $109 million on the previous year.
“At the segment level, Government Systems revenue increased 4 per cent YoY as growth broadened in several areas of our diverse portfolio – even in what is typically a softer quarter. Satellite Services revenue increased to $274 million, a 36 per cent increase YoY. Gains were driven by improving in-flight connectivity (IFC) service revenues as passengers return to air travel and continued top-line growth in our fixed broadband business,” stated the company.
“In Commercial Networks we saw the top line expand sharply by 77 per cent YoY, totaling $119 million for the quarter. The main growth drivers were accelerating mobile terminal deliveries primarily in support of Delta Air Lines and their updated Wi-Fi service launch this year, as well as continued growth in our ground antenna systems business,” the company added.
Viasat says the number of aircraft in service and carrying its In-Flight Connectivity equipment is about 1,400 (out of 1,550 with its equipment installed) up 80 per cent YoY.
Importantly, Viasat delivered its new ViaSat-3 (Americas) payload to Boeing for final integration and testing. Viasat is continuing work on the second and third satellites in the new ViaSat-3 fleet.
“We believe ViaSat-3 will be transformational not just for Viasat but for the global broadband services market. In the intervening quarters we are focused on executing on our substantial backlog, and growing revenue and Adjusted EBITDA, while continuing to invest in unique and differentiated technologies, service offerings and new vertical and geographic markets. A vast opportunity for space-based connectivity is unfolding and we’re excited about what we can bring to a unique and diverse portfolio of applications, partners and customers,” stated the business.
Viasat is guiding average annual growth of about 20 per cent through FY2023.