Intelsat continued to see gains from its acquisition of Gogo’s Commercial Aviation division in the second quarter of 2021. Total revenue of $507.9 million was up 5% compared to the same time period in 2020, primarily from the aviation business consolidation. Net loss for the quarter was much less than the same time
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Intelsat is dropping the name Gogo from the Commercial Aviation division that it retired last year, the company announced July 13.
Intelsat announced the move to acquire Gogo’s Commercial Aviation division in August 2020, and the $400 million cash deal closed in December 2020 after it was approved by Intelsat’s bankruptcy court and creditors. The satellite operator is still undergoing Chapter 11 reorganization.
Gogo is still a publicly traded company and is developing a 5G network for business aviation customers.
John Wade, former Gogo president of Commercial Aviation, continues to lead Intelsat’s Commercial Aviation business division as president.
Intelsat’s North America headquarters. Photo: Intelsat
Intelsat turned in its first year-over-year double-digit revenue increase in at least eight years, thanks to contributions from its recently acquired Gogo Commercial Aviation business. The satellite operator’s first fiscal quarter 2021 revenues were $502.8 million an increase of $43.9 million (0r 10%) from Q1 2020.
The operator also cut its total quarterly net losses from $218.8 million in Q1 2020 to $174.9 million for the three-month period that ended March 31.
Intelsat completed its $400 million cash acquisition of Gogo Commercial Aviation in December and transformed it into a business unit under its Network Services division, which delivered $214 million in Q1 revenue. This represents a 43% year-over-year increase for the division and makes Network Services Intelsat’s largest and most profitable business unit, surpassing the Media unit.