ViaSat, a leading global communications company, has announced impressive financial results for the first quarter of fiscal year 2024 (Q1 FY2024), marked by a remarkable 36 percent year-over-year increase in revenue. The company’s Q1 FY2024 revenue soared to $780 million, up from $575 million in the prior year quarter, showcasing a substantial growth trend.
However, the quarter also saw a net loss of $77 million for ViaSat, attributed to higher interest expenses, acquired intangible amortization, and non-recurring acquisition-related costs. These financial figures reflect ViaSat’s commitment to strategic expansion and investment in innovative technologies.
During the same quarter, ViaSat successfully completed the acquisition of Inmarsat, a significant move that has already begun to contribute positively to the company’s performance. The acquisition resulted in a one-month contribution from Inmarsat during the quarter, with $134 million in revenue and $72 million in Adjusted EBITDA, following the closing date of May 30, 2023.
Inmarsat’s standalone performance during the quarter ending June 30, 2023, was robust, with a 10 percent increase in top-line revenue, reaching approximately $400 million. The estimated Adjusted EBITDA for the quarter amounted to around $220 million, representing a 5 percent increase. These figures highlight Inmarsat’s strong operational standing and its positive impact on ViaSat’s overall performance.
ViaSat’s new contract wins for Q1 FY2024 surged to $803 million, reflecting a substantial 21 percent growth. This increase was driven by the inclusion of Inmarsat and the recognition of awards for information assurance products, underlining the company’s ability to secure valuable partnerships and projects.
Despite these positive developments, ViaSat encountered a minor anomaly during the deployment of an antenna on the ViaSat-3 Americas (ViaSat-3 F1) satellite. The company is actively addressing the issue to ensure the optimal performance of its satellite systems.
The Government Systems division marked an outstanding quarter, achieving a remarkable 55 percent increase in revenue from continuing operations. This growth was primarily attributed to the high demand for information assurance products and the addition of Inmarsat’s contributions. The division’s Q1 FY2024 revenue reached $233 million, compared to $150 million in the prior year quarter.
Commercial Networks also witnessed robust growth, with a 32 percent increase in revenue, totaling $149 million for Q1 FY2024. This growth was mainly driven by heightened shipments and installations of mobility terminals, with a particular focus on commercial air product deliveries.
In the Satellite Services sector, ViaSat reported a 28 percent revenue increase for Q1 FY2024, amounting to $398 million. The strong growth was fueled by commercial air In-Flight Connectivity (IFC) services, reflecting an 18 percent increase in aircraft in service. The acquisition of Inmarsat’s services contributed to the growth, showcasing the positive impact of the strategic acquisition.
Capital expenditures for Q1 FY2024 totaled $375 million, reflecting a 38 percent increase. This uptick was primarily driven by Inmarsat’s capital expenditures following the acquisition, elevated investments in customer premise equipment ahead of the ViaSat-3 commercial service launch, and higher infrastructure spending.
Overall, ViaSat’s Q1 FY2024 results underscore the company’s dynamic growth trajectory, marked by significant revenue increases, strategic acquisitions, and continued technological advancements across its diverse business divisions.