Iridium Communications Q3 Operational EBITDA Rises; Updates 2023 Outlook

(RTTNews) - Iridium Communications Inc. (IRDM) posted a third quarter net loss of $1.6 million, or $0.01 per share, compared to net income of $2.1 million, or $0.02 per share, prior year. The company said the net loss was primarily the result of costs incurred in connection with the successful refinancing of Iridium's credit facility during the quarter. On average, five analysts polled by Thomson Reuters expected the company to report profit per share of $0.03, for the quarter. Analysts' estimates typically exclude special items. Operational EBITDA, or OEBITDA was $121.3 million, a year-over-year increase of 12%.

"Iridium continues to enjoy strong subscriber momentum and broad-based revenue growth across its commercial business lines, which drove record operational EBITDA," said Matt Desch, CEO.

Total revenue was $197.6 million, up 7% from last year, while service revenue grew 9% from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium's growing subscriber base, was 77% of total revenue. Analysts on average had estimated $200.09 million in revenue.

The company ended the quarter with 2,236,000 total billable subscribers, compared to 1,973,000 for the year-ago period. Total billable subscribers grew 13% year-over-year, driven by growth in commercial IoT.

For 2023, the company now expects: total service revenue growth of approximately 10%; and OEBITDA of between $460 million and $465 million.

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