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| Business jet passengers using Gogo in-flight connectivity. Photo: Gogo. |
[Avionics Today 05-07-2015] Gogo has reported record first quarter revenue of $115.5 million, up 21 percent year-over-year, as service revenue increased 32 percent to $95.4 million. Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) rose 54 percent year-over-year to $8.2 million.
In its North American commercial aviation segment, Gogo reported total revenue increased to $72.5 million, up 27 percent from $57.1 million in Q1 2014. The company ended the quarter with 2,200 aircraft online in this segment, up 102 since December 31, 2014. Segment profit increased to $9.6 million, up 66 percent year-over-year and, as a percentage of segment revenue, it increased to a record 13 percent in Q1 2015, up from 10 percent in Q1 2014.
In its business aviation segment, Gogo’s service revenue increased 38 percent year-over-year to $21.8 million, driven primarily by a 33 percent increase in Air-to-Ground (ATG) systems online to 2,983 at March 31, 2015. Equipment revenue of $19.7 million was down from $22.8 million in Q1 2014, as a result of changes in ATG product mix. Total segment revenue increased to a record $41.6 million, up 8 percent from $38.6 million in Q1 2014. Segment profit increased to $16.8 million, up from $16.5 million in Q1 2014. Segment profit as a percentage of segment revenue decreased to 40 percent in Q1 2015, from 43 percent in Q1 2014, as a result of changes in product mix and increases in operating expenses, according to Gogo.
Outside of North America, in its commercial aviation – rest of the world segment, Gogo added 31 Ku-based aircraft online in Q1 2015 and finished the quarter with 177 awarded but not yet installed aircraft in this segment. Segment loss increased to $18.3 million from a segment loss of $16.9 million in Q1 2014, due to increased operating expenses to support business growth and increased satellite transponder and teleport fees.
“Q1 was a very strong quarter for Gogo on many fronts. We delivered record financial results highlighted by strong revenue growth and increased profitability. We continued to bring more bandwidth to the sky as Delta Airlines, a long-term airline partner, selected our 2Ku satellite-based technology for 250 domestic and at least 25 new international aircraft. Finally, we are very pleased that the international airline community is increasingly recognizing our company’s global leadership,” said Gogo’s President and CEO Michael Small.