Viasat announced that it expects to recover less than 10 percent of the planned throughput on the ViaSat-3 F1 satellite, which experienced a malfunction during its deployment in July. Despite this setback, the company expressed confidence in meeting its customers’ needs without the necessity of replacing the satellite.
Moreover, Viasat stated that it anticipates achieving sustainable positive free cash flow in the first half of the 2025 calendar year, earlier than initially projected, excluding the positive impact of satellite insurance proceeds.
Regarding the malfunctioned satellite, ViaSat-3 F1, Viasat highlighted its insurance coverage of $420 million and mentioned plans to finalize the insurance claim before the end of the year.
In addition to these updates, Viasat reported that the integration of its acquisition of British rival Inmarsat, completed in May, is progressing well and is ahead of schedule.
Viasat said the anticipated synergies from this acquisition, amounting to approximately $80 million in annual operating expenses and approximately $110 million in annual capital expenditures, are expected to be fully realized in the fiscal year 2025, ahead of the initially planned three-year period.
Viasat said it remains on track to achieve its outlook for FY2024, excluding integration and related costs, as indicated in its Letter to Shareholders in August 2023.
Viasat continues to expect revenue growth in the high single-digits over FY2023 for the combined company (including Inmarsat) and slightly lower growth in Adjusted EBITDA over FY2023. In addition, Viasat expects to grow revenue and Adjusted EBITDA again in FY2025.