POST Online Media Lite Edition



 

Gogo Q2 revenue up 25%

Staff writer |
Gogo announced its financial results for the quarter ended June 30, 2014. Gogo reported Q2 revenue of $99.5 million, up 25% year-over-year.

Article continues below






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.

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 to expand internationally.

Cash CAPEX, defined as capital expenditures net of airborne equipment proceeds received from the airlines, decreased to $26.9 million from $28.8 million in Q2 2013, as a result of higher airborne equipment proceeds received from the airlines in Q2 2014.

As of June 30, 2014, Gogo had cash and cash equivalents of $196.2 million compared to $266.3 million as of December 31, 2013. On July 30, 2014, Gogo fully funded a $75 million add-on to its credit facility.


What to read next

Gogo Q1 revenue increased to $141.7 million, up 23%
Gogo Q4 revenue $92.6 million
Gogo Q1 revenue up 35%