Viasat record revenues
May 27, 2022
By Chris Forrester
California-based Viasat reported its 2022 full year revenues rose 24 per cent to a record $2.8 billion (€2.6bn).
Viasat told shareholders that while it achieved its Q4 FY2022 outlook and FY2022 goals, Q4 FY2022 had some challenges. The challenges included ViaSat-3’s ground network expansion and delays in both NSA certification of Information Security products and FAA approval of new Tactical Data Links products within the US were expected, while spot supply chain issues affecting shipment of some government products were not.
“In Q4 Viasat also increased research and development (R&D) spending on attractive growth opportunities.”
“We believe the unexpected challenges in the quarter are transient, and discretionary spends are already accounted for in our FY2023 targets,” said the statement.
“We believe we are well positioned to achieve our prior FY2023 earnings guidance and strategic objectives driven by the expected continued growth in commercial in-flight connectivity (IFC), resolution of procurement bottlenecks in our Government Systems segment and sustained growth in our Commercial Networks segment, offset somewhat by bandwidth supply constraints in fixed broadband and growing ground network expenses as we near the ViaSat-3 (Americas) launch. We have substantial tailwinds for FY2023 and beyond in IFC due to passenger demand growth in North America, rapid growth in aircraft terminal installations for existing customers, and awards from new airline customers – including Southwest Airlines. We now have 20 airlines on board and intend to help each leverage the best, most reliable in-flight Wi-Fi to serve their needs. We are especially appreciative that our airline partners choose to grow their fleets with us not only because of what we can do now, but because they resonate with our vision of how to deliver the best connectivity in the future. Until ViaSat-3 (Americas) enters commercial service later this fiscal year, continued growth in domestic IFC demand will continue to pressure our US fixed broadband business. Anticipated ViaSat-3 commercial service activation early in Q4 FY2023, along with new service plans and network innovations, are expected to enable renewed growth,” it added.