Points being:
- Viasat said it does not expect any material changes to its financial outlook based on United’s Starlink announcement.
- This really is inconsequential. One percent means nothing. Assuming each United aircraft currently connected with Viasat generates $120,000 in revenue every year for the satellite operator, DiPalma said this amounts to around $64 million in annual sales for the company, or roughly 1% of total revenues.
- Viasat provides in-flight connectivity (IFC) services to approx. 3750 active commercial aircraft, with 1,460 aircraft in its backlog. A majority of the company's IFC contracts are for a period of five to 10 years, with varying levels of penalties associated with a termination for convenience. The Inmarsat integration remains on track and realization of synergies is expected to be ahead of plan as the company announced labor actions in 3Q24 resulting in approximately $100 million of expected savings beginning FY 2025.
- Rick Baldridge purchased $825k worth of stock last week. It was a direct purchase of 55,000 shares between $14.75 and $15 and not free shares. He clearly sees some upside. Verizon is now launching direct to device with Skylo and Viasat. Should be a positive. I don't think Ricky would throw away $825k if he didn't see some upside. he just wouldn't buy anymore.
- As long as other providers like hughesnet are around, Viasat will be here.
It’s not the end, it's a wake up call to create new products and to stop doing things the old way.