Viasat (VSAT) 7 Feb 232023 Q3 Earnings call transcript

Welcome to ViaSat’s FY 2023 Third Quarter Earnings Conference Call.

Your host for today’s call is Mark Dankberg, Chairman and CEO.

You may proceed, Mr. Dankberg.

Okay, thanks. today. us joining for Thanks We released its be market and shortly to shareholder on our letter available call. will on after website that close this our and referring we

Rick Investor me from and Baldridge, our Joining Corporate Operating Chief Blair, Development; Duffy, our Relations. Peter Officer, Officer; the and our on call General Chief our Chairman; Counsel; Kevin today Vice Harkenrider, Shawn Robert from Financial Lopez are Paul Froelich

So, disclosure Robert for let's provide Harbor start. have Safe our the

Mark. Thanks

forward-looking contain factors will This discussion is results that this know, you reminder statements. could to a As differ actual cause materially.

is Additional you, information Form concerning in Mark. SEC or filings, these reports the XX-K from factors including recent our and on from available Form contained most our to SEC Back are Copies XX-Q. our website.

Robert. Thanks Okay.

So, then a questions. I'll right into and brief go overview, we'll with start

point to weeks on test from been So, NASA have previously about missions that today the [Indiscernible] two the completed. mission one on been satellite back follows planned pushed space than most station pair launch We're to which April America the ViaSat-X IFS. important construction replacement is and of a has bring to that and because later scheduled international for and of Xth

growth is service had most addresses strong Bringing have that satellite in into In immediately bandwidth challenge, inflight the us steadily we've our to downsize the business support which to constraints. connectivity. caused that US our residential

Americas markets. full Mexico the additional are our had more we'll it of also and geographic to and ViaSat-X, in more drive bandwidth, And confident growth. serve to value. good will in currently and updated new customers and greater supports plans existing capacity we've to that areas vertical opens higher Brazil the and We're be introduce growth with speeds, able and [Indiscernible]

just services the of start site start couple The after and we and to promptly orbital during summer. a weeks initial expect launch reach to its satellite should scaling

planned to number far for catalyst not enable behind launch cash is satellite important Asia-Pacific East, It's our capacity the September. markets. ViaSat-X, behind us That adds other is to by and coverage reach now. a too Middle not in of Africa satellite The to to flow. and EMEA, free positive ULA its expected far also Europe, businesses mobility

new to year-over-year. good We free can we in making available connectivity, deliver is the the growth think We're service up their we orders worked Airlines, Overall, on Delta be the expect on are both that we in-flight very exciting announcement how progress we've understand sure, making with full one them by quality and especially. methodically fleet, recent example demand Wi-Fi scale. at

at about we're Delta all And of a with we the US at lines flights Today, that's between major and course, continue cities. X,XXX around and that's to free growing day pretty JetBlue, total including other those Wi-Fi, support, also now same serve rapidly. a we of

XXX year-over-year planes see and We engagement quarter scale XXX and that shipped brought a to which Commercial into the partners good third models We pursuit growth. terminals airline in about brands. in-flight business for past ways about opportunities and affordably with their with about in in Air working XX% is service, Wi-Fi

New very additional and X,XXX planes and at been about both customers we have still with orders new have existing over order. good

our their customers cumulative XX new probably range are the XXXX. to delays some by airline in seeing the fiscal of XX of Our of about aircraft in deliveries end

anyway. grow fourth So, in sequentially installs quarter the will and we expect deliveries

well be to global believe important the airlines. China. been markets. as ability Chinese And to airlines US equipping Station the seamlessly serve China air We've the to and also Airlines partners and domestic many from there pipes with to we international international The China largest are our travel as in will

the of realize Within TDL our on today We'll major we greatly The expected of the close sheet. for our business is $X.X also the of the end which balance in sale that, billion strengthens again about $X.X quarter. sale cash, point third the just as around billion. over other after of

that very year us. a actually profitable So, including FY be for will gain, XXXX

ensure we potential. have since drive will can greater our satellite we services sale The businesses growth significantly

As quarter, that's we rightsizing as to we mentioned last the a of sale, have result do and some underway.

Inmarsat, regarding community U.K. primarily close the And the gates to are remaining the European approvals. and the transaction antitrust

insight on expect current quarter. the good -- to have the regulators views matter regulatory We this the into

for year we also results provides -- launch So, relative to Those expected third data and the significant schedule year. first expectations largest the of fiscal with the entering for below the quarter factor the shareholder the the in data the of ViaSat-X being the quarter our our letter in year-to-date. of shareholder financial are XXXX our delay satellite

had we've certification and our We've to is products supply delivery services year-over-year on performance chain challenges products, for and affecting not the orders. schedule on customers deliveries that encryption of strong, product issues or had of our airplane and but the specific to some other us, demand cost good our right are

With gain, our by. we'll ever fiscal the for year highest the TDL report earnings

XXXX the is to exciting, as described very start from first launch ViaSat-X the in outlook fiscal year of letter. and there with the We shareholder the expect we think

it So, with that, for we'll open questions. up

floor questions. for now The Instructions] is open your [Operator

Raymond line proceed. from from comes question Ric first the James. of Please Our Prentiss

everybody. afternoon, Good Thanks.

Ric. Hey

two I questions. shareholder A of letter. appreciate the couple

first ViaSat-X that long think thinking do you is starting over glad the from you up? at be ViaSat-X there's we letter. pent-up launch that coming when like -- that. your got have fill Americas. it are And Mark, to a demand the We've talked -- think need First, anticipating to you we are first to question? takes sounds How to it How about ViaSat long about

we're way groom fill we've what of for to kind kind here. well is it people -- doing is, that past, customers' operated and mix our the could to customers, has worked us and of the we in evolve we which of or Well, tend which basically Okay. then up we our higher-yielding service kind -- say,

services, with government, multiple serve them times Think that maritime hierarchy value we've and types. those to and of of as talked difficulty this about

So, then of subscriber And we tended we filled typically to years been a the or satellite couple post-launch. generally two what That's so. to three evolve up do. the have years we will

our we've get working The performance making a at approach predictable but is focused kind we that on the much schedule, to we've pretty sure really same that produce ViaSat-X, what we technology, the expect been it been that on the can of platform. -- we and more it's

flow that, timing rate adjust the our of and that So, based assessment of of we our on satellites current cash will demand.

for -- not don't going put it we're we out yet. specific timetable a So, to

level, Inmarsat comment high is to you models or you're marketplace. us, obviously from in level shareholder the tell and you in. but in spectrum device satellite maybe the to in direct marketplace There's that feel interesting to L-band marketplace, about There's is of do Can directed obviously, closed, a not Also the going that the the smartphone a Okay. come handset letter, one. to kind interested has and how coming you, device that can high that, carrier model a then pass. into fact chip deal

that Or to And thoughts this a direct-to-device So, platform? high-level how see materializing? do type need LEO kind do have would slots. on So, just work? you all you how market of

-- relatively market. lot people user. in interested a address large the but average first, so very And be we to think to Well, with low expect -- we're direct-to-device revenue market, a with of per Okay. also probably I the to the likely services market, but really lot the things existing in network satellite done lot able the mobile we're to a that that see of to space of that market. things that ground enhance Also in are and be serve going

we which will more all to those It benefit markets. bandwidth, higher enable airtime of existing speeds, expect pricing, also lower

For access to address those operators satellite that the services to spectrum have tools markets. those mobile and

you satellite handset are think around the can market are area direct be what services. will The each or in used serve geographic the phone, pricing a certainly be to how the delivered big more speeds there be for than what really issues -- phones airtime I many would to that emergency uncertainties big around can

of is the And talked operating be bracket really as a really same areas I the good is highest signal spectrum for to where before factors we adjusted that, depend there's in that that demand. the about going think, of a on to the bandwidth of which market, density going lot drive lot getting the it's

even what And market it's going be is to than probably handset concentrated geographically the about more the interesting is be. will markets broadband

cooperation architectures be at So, among are comparable probably It GEO the each. from that. LEO. think design We been will they're to able both that take should looking of actually to spectrum achieve some both pretty that we've and We think services deliver holders interesting.

sustainable GEO the space And concerns orbit. ones We one of a the don't LEO-specific in we've issues out some pointing think lower or necessarily do around of been have we -- market. it's

do services proposed we that right is services that's of customers. around this just just of at concern of that and can the to very there more are be and for -- We're are we large of able satellites sure cross-section good think to scaled -- not deliver to We That's been ambitions be emergency that mass to the numbers a overview this point. the do have the that's some should be interesting direction, of than in much kind -- to service. and be that kind the area going have

I we and home. we'll access as market appreciate. And stay tuned Great.

Ric. Thanks

Cusick proceed. line from question Please Our Phil next is of from the JP Morgan.

you if Phil. provide taking be any broadband Thank the for update increased could launches well churn growth Hi, trending may competitive competition on this given Thanks into be would you. is to strategy like is an broadband? on what to that? intensity? As in as once fixed I'm just wondering ViaSat-X the the return Nick how question. And how fixed for playing

those churn for contracts people very that haven't for you markets, that their at when the had timeframe has was saw -- since -- are subsiding signed on But those dependent What of the a since their churn broken out of buying moderated broadband is probably of recently contract, markets. tied COVID I to some can on actually home. Okay. we're Well, specific tell us. lot we churns out We and been churn us. we

service do see we of in that going for markets more million -- to people that the bias targeted of see the million big proposition of XX XX-ish be satellite volume, the terms candidates reasonable we but for homes there's speed, is price. are are -- estimate the competition broadband, think issue in that value to We kind

And really on more and our -- stream then ability thing think intensive, becoming the speed bandwidth-intensive. not It's but streaming. that's is to and very more to -- that important I the other focused we're it

And satellite surface much terrestrial to way. difficult that in pretty an any wireless unlimited so for it's support

of we're in really to We competitive the think that going market. aspect be

able be big update pricing. down do to to And bandwidth, So, us to I allows think with churn Viasat-X to think for drive and is us, the. speed, we thing we'll I -- the our continue

next proceed. Landon comes Park from of the question Stanley. from Our Morgan line Please

Thank you you. Mark, want did did else you add add get anything or under off cut that? to you

no. No,

the last continue cut think last off can I not. to I we offer. improve expect churn we I thing I with said plans was that said. that thing the don't think was the or new That to

Okay. Thanks Mark.

was able to has have global free So, my to on launching they you is yes, by retrofits for XXXX, of a as product target product prospect their you partner, on to I -- wondering, fleet? Wi-Fi the be this their global Delta out have with a a the finally gain end what side, international laid

variable? a about contracts Or can Delta review of those trend what ARPA how IFC -- don't know model? expect can then And just fixed you level current Wi-Fi specifically, versus and structured in and are -- and levels to the jets are we the at talk you maybe trend if regional I in potentially. but where ARPA terms What your can are can free higher there

Okay.

Okay.

a in So, there. lot

their in-flight the that a Delta, good notion Wi-Fi, global including they've with we wide-bodies. on do be on supported think the partner, very So, relationship the have I we'll

that's their what service they're think of all I for part across is consistent fleet. looking

trying models, time we've to one a they're for. basis that that is to on they're routes. tried think the bit -- brand type it their models service on of little us that frame -- ViaSat-X in looking tailor in offer in-flight -- length on wants varies plane routes to that of do of have to or what done the way the connectivity they're the by their we different or global we and things clients. confident The we that to a So, to use airlines business their the And is enabling

roots pipes before, But are of is planned. there are are there and said components we've and the sort their on planned -- the way to their are and fixed like the variable it, airlines variable model dependent parts

we in So, all are you revenue think in I -- number kind model that it's very on hard to the put things a plane, full-service it. of consider the of average our when specific have But per representative representative overall, have in patent. revenue it's to what are full-service models out But have had. these kind others going what break pretty We're others plane not in industry of of that per particular.

What terms under as you kind Wi-Fi see of upside that free model in a can increases percent of model matures?

not percent I'm a increase. up to put going

go what XX% we see expected to XX% that range Wi-Fi, you -- seeing expect, XX% where X% in the to passenger are pretty think and from up or other we what we engagement in-flight see places to I rates another can range used the easily.

ability that the will makes more to -- there revenue that. uptake. per numbers attractive think into And to plane. think that's give But one it things not of we're that's support for how a I any lot translate a is about that the us going I So, will lot be

just And X.X XXXX versus on follow-up out the just for to for the forma? Can one of me you're the pro fiscal guidance then getting some Understood. the X.X Shawn you bridge target for leverage laid in how letter. financial maybe

Sure.

couple think I So, a of parts. it's

mind, of not keep to in we have forward to business continuing the all, across keep as look it respect but next growth need you we'll and operations, with TDL EBITDA Obviously, anymore. our mind. to in First business our having year, that right-size

over a then about perspective, was the this little capital year And bit billion $X.X or from so, that.

the tick the mix success-based we'll the ones coming up. to lot CPE change quite see CapEx but down tad, on flat relative about year, which have bit it a a will a we'll as more Next for are satellite,

pro roll So that of get as kind on of forma forward -- to sale, mark. our you the if that kind about TDL that's debt you where

that's fiscal implied underlying room that for XXXX? so And what's cash the by

of look to burn I that going the do cash number, give inferred but that if that to you to what to think if the Well, -- of kind can you EBITDA of on. triangulate relative kind math that not about I'm just you CapEx. think I total kind

correct? mid-single-digit make the basis? And continued I'm I now then is Understood. low for Okay. XXXX, to so is going fiscal flat, So, quarter EBITDA from is be annual understanding guidance last sure operations just XXXs what in the the number a the on

grow double-digits year's low what expect we it is EBITDA, said next think I we the that to in year-over-year.

So, I think--.

about of asking XXXX. Sorry, I fiscal was the base

Right.

to you So, think could it a what prior of for basis XXXX year. to XXXX, said on is operations to we continuing the be about flat

in And million that fiscal around was little what, right XXXX, about, a $XXX less?

little a to was It that. shy

Thanks Okay, perfect. Great. and very Mark. much Shawn

Our Please line B. of Crawford Mike Riley from question from proceed. comes the Securities. next

that review, you in presuming Inmarsat? the Can expect UK's favorable, with close there how you if and what, Competition us you when changes you. could Authority are line that Thank time any, after Phase X tell Markets decision? soon And the it's

Hey this Mike, Robert is Blair.

them up to Commission be theoretically us we then and as the favorable, as and their be to March the expect would wrapped plan timing same timeline. the if is they've should thereafter the we it's when close is what the So, able of to end for CMA along long shortly is European indicated

potentially could after that drag But the out further CMA.

are March. those done, close pretty to really it is would that. of done the review depends on expect and So, be of we end European as the processes quickly how able soon approved both if as after CMA the But to would finish Commission quickly their

relates regarding you. any you Is -- you question there Inmarsat? can the And satellite similar information provided follow-up Thank potential launch your Okay. give then is to timeline?

do satellite website. month, a their this launching satellite of probably couple their satellites. -- see their information I for had years a but and available are one are follow-on satellites they there's six gap to through they think another their I they They behind of mostly don't want IXX think

Okay.

question next of Caleb Please Henry from Analytics. Our from the comes Quilty proceed. line

Question XX about guys. Hey Link the business.

opportunity if is there away curious So, that did just Link sale Or for though the providing all is sale? XX? to the if done, sort with ViaSat of any go I'm -- state-based even

waveforms contracts Link a do of can communications, with The cover and sale. wave we data system. And module we're one part to those went forms as links. -- XX, as the in doing them enable include providing a of Link of sale, range space multi-waveform XX. XX variety businesses we're space have And that we the But to specific of a Inmarsat Link

we'll So, that we'll hardware application. -- have have that for common

was development use that's Okay. XX? agencies Does constellation. supposed building the that that the for that mean something space still in or know that with opportunity well? there's ViaSat to is to Link Blue then And have satellite do sold you're you Canyon participate I as still

existing had did payloads FDA and XVI business. with the that for So, go that contract we

Okay.

question & comes the from Koontz from Company. next Ryan Our Please proceed. line of Needham

Thanks the for adding of scales kind think channel, from Thanks. here, do the opportunity IFC all the business that need to global support, in from you the business apart taking business tremendous parts scale terms infrastructure, those about things What incapacity address how about question. Mark, the to increase thinking think you of of key global? sorts ViaSat-X. of as

Sure. business Yes. businesses we what in that with X already have the for is things the doing think well place. pretty ViaSat-X doing I been Well, good we've of the we're models much all about

been in the operating. -- in straightforward. residential pretty is bandwidth least more countries in in plug or rural in set ability to the where We've business models at which So, in up we've our

but that in this because Latin already purposely East And includes done we support that Europe, pretty -- Asia-Pacific, that I connectivity have full-service we America, think with already purposefully, Middle customers we model. when and Australia, the space we've in-flight our have

is most -- in-flight in into just is a things existing that direct that is of the And really for for ViaSat-X the business one to world. have we about And of infrastructure kind can covers that all one airlines really think getting that's on we good especially models, we that of it a well. go-to-market connectivity us. So, we as airline basis over that a support plug because I then force sales can think the so I that, exciting global have leverage that's the

reallocate just takes and great. move How truly investors particular your it. reallocate about the Got about Are letter that reallocation capacity quick that a timeframe That's think into kind new of talking it And it? months, of quarters to IFC. question to a capacity you application? about it into the we should

that's a good question. Okay. No,

airline as be traffic able grown, very each thing to main not when, done that expected and what in where, geographic business the be bandwidth we've then match to seats the to is the has airline. going the on but to will and So, airplanes on the a gauge careful basis are also understand purposely be each also only where plane are the demand demand

planes. So, have to on demand scaled the that that we is those bandwidth sufficient the

do made going IFC we I when it, that, it's good mean, had choice our customers. we've that choice it's that good a what for definitely deliberately. to And the be I do. I And been think for it's a company, to think we

for need customers. places think up shareholders residential to weakest frees may on business, it done customers places can the need I is it. churn used And won't where was we we new we those what for is bandwidth it plan IFC, with those then in natural we've where replace ahead. And we've that

to as customers we're have lot few add way the get reallocation within of the go grow have we both we'll right? problems well. and bandwidth and just be something easier really we only start on a when able be that connectivity as full, of But is think through we as process other it to businesses and in-flight in can US could we think and everywhere, When a we'll airlines ViaSat-X,

all to we because that choices see. to When we see we don't serve we what all all address, really that a the in enough right? allocate the we It's could the have demand making have to choose demand we of serve, bandwidth question given about markets

Thanks It does. have. That’s Mark. all I

DiPalma of next Louie proceed. William Please the line question Our from comes from Blair.

Mark, Peter, Robert and Rick, Shawn, afternoon. good

Louie. Hey

smaller as product/antenna to ERJXXXs, provide JetBlue's CRJXXXs does for up you have you antenna jet on and I Following larger provide question. jet that Landon's regional smaller do ViaSat ERJXXXs. know aircraft? the a IFC aircraft, but regional for connectivity on have such a

scale. and the the from well, any that commercial really a the probably business have. lot business now, airline currently commercial smallest have Right a aircraft they type of get, depends of model it is of EXXX at a the think operating from that on of But exact we the I kind

Are you jets? for then Delta's Okay. yourself out regional ruling

No, no.

airline and customers of with of go gets have that we're smaller certainly We really with that. we well or coming something We our that smaller business for want. will types planes. aircraft that do the think amounts down I question products sort that up developing others. It's that a specific our to economically

now And are smaller working those aircraft. more so we on class of antennas did for fuselage

that good. has delayed? And the woods government for were And are previously the business, ViaSat the received Sounds there? encryption certifications of out product you

the know Pretty the is for a But they demand they -- government our customer that number so especially issuing there's reasons been The haven't certifications have. issue products of range they of close. that -- products. for a across for

That's And so they will later and their certifications kind relative month. be, that of certification the to guidelines what make. informed demand to us they've we are those that issue can this and expect what evaluated

One costs ViaSat-X and the customers residential premise terminals? customer for when deploy And OpEx how think Great. Shawn, the Thanks. about equipment, we you should new for CapEx

Okay.

a So, parts. of would premise I think there's what Similar, think customer the couple I -- equipment. the on about

come in So, pool over years the brand-new similar all down natural turnover right? basin, because then onset equipment. get kind a early refer a we the little And to costs tend we the higher as prior time. are costs in and to Those of it's have

we that's go going about CapEx, next up ramp or that of mix when the mean, you're thinking the year-over-year. significantly quantum to year have The I

as is this year. that what it about Xx of think You to

an -- gives that have that you bucket. just significant So, we'll investments in

new starting of as and in to service primarily launch the it's I On have the that end we definitely plans. prepare we're our mean marketing you'll front feel side, advertising for OpEx

the those coming front in EBITDA as part end. margins of in the see You'll

But as million of I this we to operating full to scaled This year. think mark. year ViaSat-X, ground. just with remind $XX of of been to for look talking year about the other people, We've our year, respect expenses components to through about acting, that on the next example, kind the

we'll then full EMEA weight building theViaSat-X have of Next our ground, we'll be obviously, and the that. still APAC. revenues and scaling year, out on be We'll

So, going you think about XX%. is can of number that to

capital of So those some are of kind some OpEx. of components the

Sounds of should or good. is like for of associated other like type round customer, any And there equipment there? a CapEx type benchmark in every the like terms premise be any with $XXX customer of there numbers of

of is Well, be installation, it's the of I we we've said, and it's -- And those kind as when costs the factors. blend markedly those each it a advertising, typically, numbers demand -- will go be won't in equipment that's it for support out depends it -- on region. likely different. a the generation with, what on Shawn -- all -- depend be little. $XXX-ish had new not of be with can mix it think we won't commissions, what opening But could of satellite, The

at think China a little. the beginning, is I

the I but think-- advertising, with beginning [Indiscernible]

down can it come And $XXX to matures. then as $XXX it

Yes. as pool that well. And refer we get

I is it's for Is Centaur Okay. Alliance. new their mean launch targeted relates to EMEA September. rocket? that Launch with you And Vulcan how United as ViaSat-X that mentioned it the what

at be Atlas will launches. their It last launch. Atlas an or that's No,

speculative, device. moved but as on And bit it over. satellite be you it This them, question with following one Would is Ric's you you SpaceX a relates have more relationship an antagonistic things up question. partner merging in but for possible so direct the are now to Inmarsat, with with Okay. to future, final used to to

is Inmarsat a effort? you in for like Or are a a them own scenario a integrated But to vertically you launching manner? in with operating portion and of partner handset your direct committed constellation could SpaceX to lease there to which spectrum L-band and

good a it's question. So,

in value the -- that put systems general, add our can lot of space I that we think is in a together. we're

provides, be it still in with prospective And nature the any partnership, would -- so an at trade the who that's partner or resources what's end, the capabilities. just other about economic of dealing which

with don't rule out personally, we partnering But anybody.

So, architectures could say think can we do that in we've an value more fees just -- than add we never spectrum we as the space for shown in really never. example. I lease We

that thanks. That’s Yes, everyone. Thanks all I have.

Louie. Thanks

the line proceed. of from Stanley. comes question Landon from Morgan Park Please final Our

Thanks a guys. follow-up for taking

on prices, of those planning Just are going to use just some a that are Inmarsat you transaction? with it quick to that you a one debt at close -- anything? any financing draw still guys is way, replacing Or Are the playing TDL the in to down your as on or you buffer? items? pay keep around that Or this

Hey Shawn. is Landon, this

when -- got So, our on the -- we we proceeds definitely the we when take on down revolver.

XXXX. with extra respect We the sense. agility. backdrop credit the our a little of gives So, liquidity can And markets we the lot I transaction, did would say to counting of do that a I us it and with the, right now, say makes

there. any made So, we commitment haven't

tack struck to there that have rates any Is attractive given want reason that you the at? wouldn't financing

there, overall. structure able position good to to need financing take with look mean transaction the at right I but you with the look at consideration the we Yes, and structure, I a are that to where full-on the we is capital lens a intention of But our today in is think sure in the we're we that the into definitely and for of agree good be transaction. I position that be capital

Mark, one well. just as for Understood. And then you,

look satellite On capabilities. as ViaSat-X letter we talked the in you to flexibility the of the that, guys forward that a enhanced lot about

capacity rate that capacity the now what the on utilization of like gross stabilized the and about those X, you think that ViaSat-X we look can assets asset? being comment ended what ViaSat-X When has that and up for are can on gross

Okay.

different really good I home It's that in -- busy because mean, the what companies sort or of you've question it's residential all, a curves others a question. from first So, business. are of call seen probably demand complicated cable they hour

to significantly the p.m. and peak fall see, is from the you'll a instance, school. and P.M. like much little very the usage what then off and home can it there X:XX hours so XX morning pretty in you let's get see then maybe And kids for overnight from when or not peak daytime, intense midnight, say, in low

-- that all give be be let's have the a home, common to residential. applications in, curve You'll that time a example of right, like would say, would common see that users and utilization

geographically, hub, similar So, you when it, United carriers if what the American say, you'll the when look you type is if and other for a is hub I residential, airplanes high see looked airports. sort of as at look when areas of described it you a for you in-flight at are usage very those have see those they look when geographic an same at chart, it is in people example you'll was Delta, and let's what of major around this at lot

schedules. usage And you'll doesn't certainly zero. peaks. airlines But between, lesser go There's see to different in with different pronounced these

to And so coverage is in those you combine you satellites or around, when each only of markets. that's you specific areas one have of tends fixed you if areas demand can't when think if move combination the of it capacity weighted over a those views that not the have your reflect have utilization flexible about issues utilization, or and

can -- a far different move -- far it's that's advantage an as really, of is different not the back That's those of when connecting at that pretty can with take the look lets at effects far and doubt where so it. ViaSat-X example. look in airports very else, way times somewhere of where those away you somewhere unique zone get or when thing we time take move times really you it us thing and at do But advantage when we We else. about well-utilized, at not

things also to including maritime. we're then mobile and markets, looking land, And do similar other mobile, with

So of areas. the spots. what that systems are think in to way on the let from a things demand, about the that to -- tends these your increases or think it's the ground is do think if you and hot space especially of really put customers this what going modes is, try property who meaningful to one of the efficiency the perspective, is and show and congestion we investors that's -- I your in in failure is utilization in capital get demand be the think or And way -- pretty together of air, to kind the a we occurs it us high-demand

bandwidth working And that payoffs think to than we so being optimization serving problem. hotspots a is question? better economic what answer do significant. But we're going of Does a your around think move really on. able That's It's systems. I by the other be way to what space job we are can

provide It certainly I I'd more guess color. you I mean, if specificity. provides love could --

you do Number, want a number?

I you on you But when satellite. that utilization what it's a have say guys at the a increase mean I mean is I assume of today? ViaSat-X meaningful sense what

right? the place, by it's varies -- you So really, It have because hard. right? So

fixed. you satellite I provision users is guess gross for asking and what that essentially I'm XXX capacity, the there's are on gigs capacity of guys and beams

provisioned limitations, you essentially right? that -- of bumping capacity gross XX% that So, are much say how capacity don't is into have utilization. you you So,

places. you limitations issue the specific is into in That's run that provisioning

demand was growth the the users, have space before added much in-flight provision of the we due our in-flight two as between markets. pretty to to for we peak Sometimes residential then

managing an And forecasting so and to -- be pretty do. got good be that. got to to to that's thing easy We've we've at not

were to efficient With dynamic level are that do that. big there do to you pretty level. I get really of think a It's think able some that and the some to to levels And another can good. We're opportunities ViaSat-X pretty agreements we we're ViaSat-X, but takes that process, we're our scheduling, around. and don't move provisioning provisioning meet the close when that we some in you I described. efficient service bandwidth statistical pretty

thing The numbers look to averages though, I peak of given is of for especially it high, than to demand look if it can to one. I be And this think and important. those or would the metrics to is the the given really average -- of demand Think say, place as markets in one was the mobility just like more peak for at, some XX a airplane. a you

by sense well. places, just this the that what as is gives potential in doing a you of key So,

color all for Thanks the Understood. Mark.

Okay.

Mark for today's conclude That would Dankberg over the I call now closing like to questions. to does turn remarks.

Thanks. Okay.

question Africa, while Middle of East, bandwidth our with a think launch coverage two and So, going satellite addresses with early and kind Europe, that as The it's and the most away. issues growth that. in summary, in I not of far putting just the provides that about helps emphasize back And just behind. the a flexibility it significance now to having first April date reemphasize immediate last months really

year will financial with fiscal lot $X.X our we're businesses. most that our got the we then And think XXXX, value in each of of room, we've our TDL indicative sale billion make profitable sale business, mover on of of gain products ever, building and it's the the over a actually our

our to customers, our believe space good be Inmarsat of continue the complementary with nature our and resources people, We the for skills UK combining and for our the businesses, companies, shareholders. will business,

joining on hesitate for contact you Peter if us results topics. our our this other have on or any lot don't anyone team a thanks to or So, further afternoon. Please questions

that, with back hand to the And operator. it I'll

This concludes today's call.

now may You disconnect.