Viasat, a company that offers satellite-based broadband services, reported second-quarter revenue that exceeded Wall Street estimates. The company experienced growth in its connectivity and communications services segment, which serves residential, aviation, and defense customers in North America. As a result, Viasat’s shares rose 8.5% in extended trading.
Viasat also provided an update on its full-year 2024 revenue forecast. With the recent acquisition of British satellite rival Inmarsat, Viasat expects its revenue to range between $4.10 billion and $4.25 billion, including contributions from Inmarsat for 10 months.
Despite its successes, Viasat has faced challenges in recent months. Two of its launched satellites experienced malfunctions. The ViaSat-3 Americas satellite, launched in April, had an antenna issue during deployment. Additionally, the communications satellite from Inmarsat malfunctioned after being launched to space in February. To streamline operations following the Inmarsat acquisition, the company laid off approximately 800 employees, saving $100 million annually by fiscal year 2025.
In terms of financials, Viasat posted revenue of $1.23 billion for the quarter ended September 30, surpassing analysts’ estimate of $1.07 billion. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $486.3 million, compared to the expected $359.6 million.
Viasat’s President, Guru Gowrappan, spoke about the company’s value proposition in global mobility, highlighting its ability to provide reliable service even in challenging and congested hotspots. With a positive outlook and strong financial performance, Viasat continues to establish itself as a leader in satellite-based broadband services.