Gogo revenues rise 26%
May 9, 2022
By Chris Forrester
A rise in airline in-flight connectivity services this year and when compared to Covid-hit 2021 is not wholly surprising. In-Flight Connection specialist Gogo reported a 26 per cent rise in its quarterly revenues of $92.8 million (€88.2m) “fuelled by strong growth in both service and equipment revenue”.
Gogo’s numbers were all positive, and one key metric was the Average Monthly Revenue per Aircraft rising by 8 per cent to $3,321 (up 1 per cent from Q4/2021).
Gogo’s focus is now on Business Aviation (it sold its commercial passenger segment to Intelsat).
“Given the continued unprecedented demand for connectivity in business aviation coupled with the strong performance of our supply chain management team, we have increased our projection for ATG equipment unit shipments to 1,300 in 2022, up nearly 50 per cent year over year versus prior expectations for 25 per cent growth,” said Oakleigh Thorne, Chairman/CEO of Gogo. “We remain on track for commercial deployment of our 5G ATG network in the second half of 2022.”
“Strong first quarter results and our increased 2022 guidance provide a solid foundation for generating significant Free Cash Flow growth in 2023 and beyond,” added Barry Rowan, Gogo’s EVP/CFO. “Our financial performance and continued de-leveraging also create the flexibility for strategic investments to further enhance our growth and return of capital to shareholders over time.”
The positive numbers have allowed Gogo to increase its guidance for 2022. Total revenue in the range of $390 million to $400 million versus prior guidance of $380 million to $395 million, says Gogo. Revenue growth at a compound annual growth rate of approximately 15 per cent from 2021 through 2026.