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Shares of the company, which also reported a
better-than-expected revenue for the fourth quarter, were up
about 5 percent at $18.40 in premarket trading on Thursday.
Gogo forecast revenue of $490-$510 million for the year ending
Dec. 31, compared with analysts' average estimate of $491.5
million, according to Thomson Reuters I/B/E/S.
Gogo gets more than half of its revenue from offering services
and selling equipment to commercial aircraft customers in North
America, but has been expanding that service overseas as well.
The company, whose customers include American Airlines, Virgin
America and Air Canada has been spending more on the expansion,
for connectivity fees and regulatory approvals.
Gogo, which also has a business aviation business, said it
expects to offer its services on 125 additional commercial
aircraft outside North America this year, doubling its count
from 85 at the end of 2014.
Still most of the growth in the fourth quarter was powered by
the more profitable business aviation business, where revenue
from services exceeded that from equipment sales for the first
time.
Higher average monthly service revenue per aircraft in both its
commercial and aviation businesses helped revenue rise 18
percent to $109.2 million in the quarter and beat Wall Street
expectation of $106.3 million.
The company, which has not reported a profit since going public
in 2013, said its net loss widened to $24.1 million from $22.1
million a year earlier.
However, the loss of 28 cents on a per share basis was smaller
than the 31 cents analysts' were expecting.
(Reporting By Lehar Maan in Bengaluru; Editing by Ted Kerr and
Savio D'Souza)
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