(Adds CEO comments from conference call, background; updates
Nov 11 Gogo Inc, a provider of
in-flight Internet, raised the high end of its full-year revenue
forecast range as more airlines signed up for its service,
sending its shares up as much as 27.6 percent to an all-time
The company, which listed in June, also reported a
better-than-expected 48 percent jump in quarterly revenue.
"Given the importance airlines now attach to broadband, we
think most major airlines will make connectivity decisions over
the next few years," Chief Executive Michael Small told analysts
in a post-earnings conference call.
Gogo's services are available on more than 2,000 commercial
aircraft across nine major North American airlines. In business
aviation, the company has equipped over 1,800 aircraft with
Its Internet packages range from $14 for a daily pass to
nearly $50 for unlimited monthly use.
Gogo said last month that it would provide in-flight
Internet service on Japan Airlines Co Ltd's domestic
fleet of 77 aircraft, marking its first significant
Gogo is trying to provide better Internet connectivity on
more planes, especially over oceans, using satellites and
aircraft-mounted antennas that swivel as a plane flies to keep
tracking the satellite beam.
The company's current system is largely ground-based and
operates mainly in the United States, where it is the largest
in-flight connectivity provider with a share of about 80 percent
of the WiFi-equipped aircraft market.
Gogo has also introduced an app-based service that allows
passengers to send and receive text messages, and place and
receive calls using their own phone and own number during the
The company, which competes with Panasonic Avionics Corp and
OnAir, said it planned to bring this service to commercial
aviation in 2014. It also expects to launch a technology that
increases peak speeds to 70 mbps in aircraft.
The company is expected to benefit from the U.S. Federal
Aviation Administration ending a long-standing ban on the use of
certain electronic devices throughout the flight.
Gogo said it now expected full-year revenue of $305
million-$325 million compared with $305 million-$315 million
The company's net loss narrowed to $18.7 million, or 22
cents per share, in the third quarter ended Sept. 30 from $29.0
million, or $4.27 per share, a year earlier.
Revenue rose to $85.4 million.
Sales at the company's commercial aviation business in North
America jumped 53 percent to $50.6 million, while those at its
business aviation division rose about 42 percent.
Analysts had expected a loss of 30 cents per share on
revenue of $76.84 million, according to Thomson Reuters I/B/E/S.
Gogo went public in June, raising $187 million through an
initial public offering. Its shares have doubled in value since
touching a low of $9.71 in August - well below their IPO price
of $17.00. As of Friday close, the company was valued at $1.58
Gogo shares were up 26 percent at $23.63 on the Nasdaq on
Monday, after hitting a high of $23.94.
(Reporting by Chandni Doulatramani in Bangalore; Editing by