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Viasat and Altán launch broadband service in Mexico

Published 13/11/2024, 13:29
VSAT
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MEXICO CITY - Viasat, Inc. (NASDAQ: VSAT), a global communications company, in collaboration with Altán, a Mexican telecommunications wholesaler, has announced the launch of a new broadband service in Mexico. The service integrates satellite and wireless LTE technologies to provide internet connectivity, particularly targeting previously uncovered areas. As of today, it is available in 13 states, reaching over 150,000 individuals.

The service employs a combination of satellite and wireless systems to deliver LTE over satellite using cost-efficient, power-independent wireless LTE infrastructure. Viasat has strategically placed ultra-low-cost wireless LTE towers, including solar-powered options, to ensure connectivity in remote regions of Mexico.

This initiative addresses the lack of broadband access experienced by approximately 38 million people in Mexico, as reported by the U.S. Department of Commerce's International Trade Administration. Viasat's Mexico Ambassador Program, started in 2021, plays a role in this expansion by training local representatives, primarily women, to develop digital skills and promote gender equality and digital inclusion.

Hector Rivero, Viasat's general manager of Mexico broadband, stated, "Viasat is revolutionizing Mexican communities by providing fast, reliable, secure, affordable, and high-quality internet access." He emphasized the service's contribution to educational resources, healthcare through telemedicine, family communication, and local commerce.

The impact of the service and the ambassador program is exemplified by Marisol, a participant from Toxtla, Puebla. Her involvement has led to significant personal growth and community benefits, particularly in enhancing digital literacy.

Viasat, with a presence in 24 countries, completed the acquisition of Inmarsat (LON:ISA) in May 2023, aiming to create a comprehensive global communications network. The company's mission is to connect everyone and everything in the world, contributing to a sustainable future in space.

The information in this article is based on a press release statement from Viasat, Inc. It is important to note that forward-looking statements in the press release are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

In other recent news, Viasat Inc. has reported improved Q2 2025 results despite facing market challenges. The satellite communications company saw a slight decrease in revenues, reporting $1.12 billion compared to the previous year's $1.13 billion. However, Viasat's net loss significantly improved, falling to $138 million from a previous $767 million. These developments were highlighted in their recent Q2 2025 Earnings Conference Call.

The company also reported record contract awards of approximately $1.3 billion, driven by Defense and Advanced Technologies. Adjusted EBITDA was down by 6% at $375 million, and capital expenditures decreased by 37% to $229 million. Despite some declines, Viasat's fiscal '25 outlook remains steady with expected revenue to be flat to slightly up year-over-year and adjusted EBITDA growth in the mid-single digits.

Viasat's Aviation Connectivity Services and government SATCOM services showed growth, while U.S. fixed broadband revenue declined. The company is also optimistic about future growth in the aviation and government sectors, as confirmed by Mark Dankberg during the Q&A session of the earnings call. The recent developments indicate that Viasat is navigating a complex market with strategic finesse.

InvestingPro Insights

As Viasat (NASDAQ: VSAT) expands its broadband service in Mexico, investors should consider some key financial metrics and insights from InvestingPro. The company's market capitalization stands at $1.08 billion, reflecting its position in the telecommunications industry. Despite the positive news about service expansion, Viasat's financial health presents some challenges.

InvestingPro Data shows that Viasat's revenue for the last twelve months as of Q2 2025 was $4.53 billion, with a notable revenue growth of 36.25% during this period. This growth aligns with the company's efforts to expand its services and reach new markets, as evidenced by the Mexico initiative.

However, investors should be aware of some potential red flags. An InvestingPro Tip indicates that Viasat operates with a significant debt burden, which could impact its financial flexibility as it pursues expansion strategies. Additionally, the company is not profitable over the last twelve months, with a negative P/E ratio of -2.67.

Another InvestingPro Tip suggests that Viasat's stock is trading near its 52-week low, with the price having fallen significantly over the last year. This could present an opportunity for investors who believe in the company's long-term potential, especially considering its efforts to bridge the digital divide in markets like Mexico.

For a more comprehensive analysis, InvestingPro offers 13 additional tips for Viasat, providing deeper insights into the company's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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