Gogo (NASDAQ: GOGO), a global provider of broadband connectivity products and services for aviation, has announced its financial results for the quarter ended March 31, 2017, the company said.
For the first quarter 2017, revenue increased to USD 165.4m, up 17% from Q1 2016. Service revenue increased to USD 146.5m, up 23% from Q1 2016, driven by a 9% increase in commercial aircraft online to 2995, an 18% increase in ATG business aircraft online to 4341, and increased customer usage across all segments.
Net loss increased to USD 41.4m, a 72% increase from Q1 2016, and Adjusted EBITDA decreased to USD 10.7m, down 26% from Q1 2016. Both net loss and Adjusted EBITDA in Q1 2017 included USD 9.4m of expense related to the development of Gogo´s next generation ATG solution.
Capital expenditures increased to USD 71.6m from USD 37.4m in Q1 2016 and Cash CapEx increased to USD 58.7m from USD 24.2m in Q1 2016, primarily due to increased airborne equipment purchases for 2Ku installations.
Gogo provides in-flight connectivity and wireless entertainment services for commercial and business aircraft around the world. It has partnerships with 17 commercial airlines and is now installed on more than 3,000 commercial aircraft. The Chicago, Illinois-based company has more than 1,100 employees, with additional facilities in Broomfield, Colorado, and various locations overseas.