Title: Viasat Hopeful Despite Defective Antenna on ViaSat-3 Americas Satellite
Subtitle: Viasat explores contingency plans to mitigate potential capacity loss
Date: [Current Date]
TAMPA, Fla. – Viasat, a global broadband services and technology company, remains optimistic that it can salvage some capacity from its defective ViaSat-3 Americas satellite despite its faulty antenna. According to Viasat’s Chair and CEO Mark Dankberg, engineers have conducted end-to-end measurements and found that the rest of the satellite is operating as expected or even better. The company’s next earnings announcement in November will provide enough data to determine the extent of capacity loss and enable Viasat to implement its contingency plans.
Viasat has several alternatives in place to cover a wide range of potential scenarios. These options include building a replacement satellite from scratch, purchasing capacity from other operators, and redeploying spacecraft from their existing fleet of 19 satellites. Additionally, they may choose to reallocate one of their upcoming ViaSat-3 satellites to cover the Americas instead of another region.
The ViaSat-3 satellites are being built by Boeing; all three satellites are part of a contract with Viasat. Dankberg did not disclose the name of the antenna supplier for ViaSat-3 Americas during the earnings call. However, a previous CBS News report indicated that the Northrop Grumman subsidiary Astro Aerospace supplied the antenna.
The launch schedule for the ViaSat-3 EMEA satellite, which shares the same antenna as ViaSat-3 Americas, is contingent on the corrective actions taken. The satellite was close to launch readiness before the antenna anomaly was discovered. On the other hand, the third and final ViaSat-3 satellite targeting the Asia Pacific region (APAC) uses a different antenna and is unaffected by the issue.
Viasat expects the performance impact of ViaSat-3 Americas, which has insurance coverage, to mainly affect its presence in the US fixed broadband market. This segment accounts for only 13% of the company’s total revenues following their recent acquisition of British satellite operator Inmarsat. Dankberg assured that Viasat will be able to meet the demands of its airline customers using bandwidth from other satellites, at least in the short term.
While Viasat does not anticipate the anomaly to affect its financial results for the fiscal year ending March 30, 2025, it does expect an impact in the following year. However, Dankberg confidently stated that the company still foresees growth in fiscal year 2025, though not to the same extent as it would have been without the anomaly.
In their recent earnings report for the three months ending June, Viasat reported $780 million in revenue, showcasing a 36% increase compared to the same period last year. Additionally, their adjusted EBITDA soared by 87% to $183 million. The results also include Inmarsat’s one-month contribution of approximately $134 million in revenue and $72 million in adjusted EBITDA following their acquisition earlier this year.
Viasat remains committed to providing reliable broadband services globally and is dedicated to finding solutions to mitigate the impact of the antenna anomaly on ViaSat-3 Americas, ensuring the continuation of their growth trajectory in the coming years.
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