Global Eagle Entertainment (ENT) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $19.35 million, or $ 0.23 a share in the quarter, against a net loss of $6.87 million, or $0.09 a share in the last year period.
Revenue during the quarter surged 33.42 percent to $146.91 million from $110.11 million in the previous year period. Operating margin for the quarter stood at negative 19.18 percent as compared to a negative 3.07 percent for the previous year period.
Operating loss for the quarter was $28.18 million, compared with an operating loss of $3.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.66 million compared with $14.12 million in the prior year period. At the same time, adjusted EBITDA margin contracted 148 basis points in the quarter to 11.34 percent from 12.82 percent in the last year period.
"During the quarter, we closed the acquisition of EMC and began the process of integrating our businesses. Already, our combined company has entered into a new agreement with Intelsat that will greatly increase the capacity of our global network while significantly lowering unit costs. Further, we’ve combined the management of our network across all verticals into one group to maximize efficiencies," said Dave Davis, chief executive officer of GEE. "Also during the quarter, we launched our Airconnect system on Avianca Brasil less than two months after signing the contract and we commenced service on Jet Airways with our AirTime streaming IFE system."
Global Eagle Entertainment expects revenue to be in the range of $530 million to $538 million for financial year 2016.
Debt increases substantiallyGlobal Eagle Entertainment has witnessed an increase in total debt over the last one year. It stood at $441.52 million as on Sep. 30, 2016, up 510.95 percent or $369.26 million from $72.27 million on Sep. 30, 2015. Total debt was 38.71 percent of total assets as on Sep. 30, 2016, compared with 11.14 percent on Sep. 30, 2015. Debt to equity ratio was at 1.14 as on Sep. 30, 2016, up from 0.21 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
