Gogo Q3 Attributable Loss Narrows; Raises FY13 Revenues Above Consensus

(RTTNews) - Gogo Inc.(GOGO), Monday reported third-quarter net loss attributable to common stock of $18.7 million or $0.22 per share, compared with a loss of $29 million or $4.27 per share a year ago, due to a $16 million decrease in the preferred stock return and accretion expenses related to its convertible preferred stock, and a $1.4 million increase in adjusted EBITDA, partially offset by higher depreciation and amortization and interest expenses. On average, four analysts polled by Thomson Reuters expected the company to report loss per share of $0.31 for the quarter. Analysts' estimates typically exclude one-time items.

Adjusted EBITDA was $2 million, a 251 percent increase from $0.6 million reported a year ago. The rise was driven by a $6 million increase in BA segment profit and a $2.6 million decrease in CA-NA segment loss, partially offset by a $7.2 million increase in CA-ROW segment loss, the company said.

Total revenues rose 48 percent to $85.4 million, from prior year's $57.8 million. Analysts expected the company to generate revenues of $76.84 million for the quarter. The company attributed the increase to a 52 percent growth in service revenue, primarily as a result of a 24 percent increase in aircraft online and a 21 percent increase in ARPA in CA-NA and a 41 percent increase in ATG broadband aircraft online and price increases in BA.

Looking forward, the company said it increased the high end of total revenue guidance for 2013 to $325 million, from the prior estimates of $315 million. Analysts expect the company to report revenues of $311.18 million. The high end of adjusted EBITDA is increased to $10 million, from zero, as a result of the projected revenue increase and lower operating expenses due to certain program spending shifting to 2014.