BUSINESS


Globalstar, Inc. results 2017


(26 Feb 2018) Globalstar, Inc. announced financial and operating results for the fourth quarter and year ending 31 December 2017.

Total revenue for the fourth quarter of 2017 increased by US$5.0 million, or 21%, from the fourth quarter of 2016.

Loss from operations increased US$13.5 million, or 80%, to US$30.3 million in the fourth quarter of 2017 from US$16.8 million in the fourth quarter of 2016. This increase was due to an US$18.5 million increase in operating expenses, offset partially by a US$5.0 million increase in total revenue.

Net loss was US$22.6 million for the fourth quarter of 2017 compared to US$117.2 million for the fourth quarter of 2016.

Adjusted EBITDA for the quarters ending 31 December 2017 and 2016 was US$8.7 million and US$5.1 million, respectively. This 70% increase in Adjusted EBITDA was due to a US$5.0 million increase in revenue offset partially by a US$1.4 million increase in expenses (excluding EBITDA adjustments).

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Total revenue increased US$15.8 million, or 16%, to US$112.7 million during 2017. This increase was due to higher service revenue of US$15.4 million resulting primarily from increases in ARPU across all core revenue streams. Higher Duplex and SPOT ARPU, which drove over 80% of the increase in total service revenue, was due to new subscribers joining the network at higher rates than current ARPU levels, as well as rate plan increases for legacy subscribers.

Loss from operations increased US$5.1 million, or 8%, during 2017 due to a US$20.9 million increase in operating expenses, offset partially by a US$15.8 million increase in total revenue.

Net loss was US$89.1 million for 2017 compared to US$132.6 million for 2016 due primarily to non-cash items, including the fluctuation in derivative liabilities and impairment charges during the respective periods.

Adjusted EBITDA increased 57% to US$32.2 million in 2017 from US$20.5 million in 2016. The increase was driven primarily by a US$15.8 million increase in total revenue, offset partially by a US$4.1 million increase in operating expenses (excluding EBITDA adjustments).

Reference: Globalstar PR