BROOMFIELD, Colo. - Gogo (NASDAQ:GOGO) Business Aviation (NASDAQ: GOGO), a leading provider of in-flight broadband connectivity, has partnered with Skyservice Business Aviation to secure Supplemental Type Certificates (STCs) from Transport Canada Civil Aviation (TCCA) and the Federal Aviation Administration (FAA) for its Gogo 5G service. This partnership aims to enhance air-to-ground inflight entertainment and connectivity (IFEC) across North America.
Skyservice, a prominent North American business aviation company, has successfully obtained TCCA STCs for the Gulfstream G280 and Embraer Legacy 450/500, with FAA validations pending. STCs for additional aircraft models, including the Cessna Citation CJ3/3+, Bombardier (OTC:BDRBF) Challenger 300/350, Bombardier Challenger 604/605, and Cessna Citation X, are also in various stages of development.
The STCs will allow operators to install an AVANCE L5 system and two MB13 phased-array antennas on their aircraft, with provisions for an easy upgrade to the forthcoming AVANCE LX5 (5G Line Replaceable Unit) in the second quarter of 2025.
Gogo's 5G network, supported by over 159 sites, including 9 in Canada, is expected to offer superior IFEC service. The company is currently accepting orders for 5G upgrades and is offering discounts of up to $50,000 to operators who are interested in upgrading to AVANCE and provisioning for Gogo 5G.
In anticipation of the network transition to LTE technology in early 2026, Skyservice is also offering upgrade slots from legacy ATG systems to AVANCE as part of a dedicated space upgrade program.
David Salvador, vice president of aftermarket sales for Gogo, expressed excitement about the partnership with Skyservice, highlighting the expansion of their 5G STC portfolio and the benefits it brings to aircraft operators seeking an exceptional in-flight connectivity experience.
Gogo is recognized as the world's largest provider of broadband connectivity services for the business aviation market, with a significant number of aircraft equipped with its broadband ATG and narrowband satellite connectivity systems.
Skyservice, known for its comprehensive global shop for business and commercial aircraft MRO services, is an approved aircraft maintenance organization by multiple aviation authorities.
This announcement is based on a press release statement, which includes forward-looking statements subject to various risks and uncertainties. These statements should not be viewed as guarantees of future performance, and actual results may differ materially.
The information provided in this article does not include any promotional content or endorsements but focuses on the factual aspects of the partnership and technological developments.
In other recent news, Gogo Inc . reported a 1% decrease in total revenue year-over-year, amounting to $102.1 million in the second quarter of 2024. This decrease was primarily attributed to a decline in equipment revenue. However, the company experienced a 4% increase in service revenue, reaching a record high of $81.9 million. Despite a 31% decrease in adjusted EBITDA, which amounted to $30.4 million, Gogo Inc. remains hopeful about its future prospects.
The company is set to introduce the Gogo Galileo product in 2025, which is anticipated to contribute significantly to revenue. Gogo Inc. has also signed agreements with OEMs and dealers for Galileo installations, indicating the company's strategic expansion. The company's updated 2024 financial guidance anticipates revenue ranging from $400 million to $410 million.
However, the company reported a delay in the launch of Gogo 5G to the second quarter of 2025. Despite these developments, Gogo maintains a positive long-term outlook, with a focus on free cash flow generation and customer retention. These are the most recent developments for Gogo Inc.
InvestingPro Insights
As Gogo Business Aviation (NASDAQ: GOGO) continues to expand its 5G service offerings in partnership with Skyservice Business Aviation, recent market data from InvestingPro provides a snapshot of the company's financial health and stock performance. Gogo's market capitalization stands at approximately $978.8 million, reflecting its place in the market. Despite a challenging period for the stock, with a significant decline over the last three months, analysts on InvestingPro still predict profitability for the company this year. This outlook is supported by the company's solid performance over the last twelve months, where it has been profitable.
The company's Price to Earnings (P/E) Ratio, a key metric for investors, is currently at 15.43, with an adjusted P/E ratio of 14.67 for the last twelve months as of Q2 2024. This suggests that while the stock has faced recent pressure, its earnings may still support its current valuation. Additionally, Gogo's Price to Book (P/B) ratio is high at 18.82, which may indicate investor confidence in the company's assets and growth potential.
InvestingPro Tips indicate that Gogo's liquid assets exceed short-term obligations, providing a cushion for the company to manage its financial commitments. However, with the expectation of a drop in net income this year and the stock trading at a high Price / Book multiple, investors should consider these factors in their decision-making process. For those seeking more in-depth analysis, there are additional InvestingPro Tips available on the platform, offering a more comprehensive view of Gogo's financial outlook and stock performance.
It's worth noting that Gogo does not pay a dividend to shareholders, which may influence the investment strategy for income-focused investors. Nonetheless, the company's advancements in 5G technology and its partnership with Skyservice could position it well for future growth in the inflight connectivity market.
For potential investors and current shareholders looking to stay informed on Gogo's performance and future prospects, InvestingPro offers additional insights and tips, which can be accessed for a more detailed analysis of the company's financial standing and stock trends.
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