News Column

Gogo Announces Second Quarter 2014 Results

August 30, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Gogo Inc. (Nasdaq: GOGO), a leading global aero communications service provider, announced its financial results for the quarter ended June 30, 2014.

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Gogo reported record second quarter revenue of $99.5 million, up 25% year-over-year. Adjusted EBITDA for Q2 2014 was $3.1 million, down from $3.8 million in Q2 2013, reflecting continued strong revenue and profitability growth in CA-NA and BA segments and increased investment in CA-ROW. Net loss attributable to common stock for Q2 2014 was $18.7 million, or $0.22 per share, compared to net loss attributable to common stock of $72.6 million, or $4.98 per share, in Q2 2013.

"We had another great quarter and reported strong growth in revenue and profitability for both CA-NA and BA segments," said Gogo's President and CEO, Michael Small. "Furthermore, we made solid progress in operationalizing our international business. We launched in-flight connectivity service on Japan Airlines, expanded our global satellite network footprint and continued to increase our satellite solutions STC portfolio," added Mr. Small.

Second Quarter 2014 Consolidated Financial Results

-- Revenue increased to $99.5 million, up 25% from $79.4 million in Q2

2013. Service revenue increased 28% to $79.2 million and equipment

revenue increased 17% to $20.4 million year-over-year.

-- Operating expenses, including cost of revenue, increased to $110.4

million, up 25% from $88.5 million in Q2 2013 primarily as a result of

revenue growth and increased investment in CA-ROW.

-- Combined segment profit of CA-NA and BA for Q2 2014 was $21.9 million,

up 67% from $13.2 million in Q2 2013, driven by strong revenue growth

and improved operating leverage in these business segments. Combined

segment profit of CA-NA and BA as a percentage of those segments'

revenue increased to 22% for Q2 2014, up from 17% for Q2 2013.

-- Adjusted EBITDA for Q2 2014 was $3.1 million, down from $3.8 million for

Q2 2013, as a result of increased investment in CA-ROW as we continued

Keywords for this news article include: Gogo, Investment and Finance.

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Source: Investment Weekly News


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