Viasat (VSAT) 8 Nov 232024 Q2 Earnings call transcript

Good day, everyone. Welcome to Viasat's FY '24 Second Quarter Earnings Conference Call.

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

You may proceed, Mr. Dankberg.

Thanks. thanks us and everybody, afternoon, for today. joining Good

Guru President; and Shawn with Blair, me, our our got I've Officer; So Duffy, Gowrappan, Chief General Counsel. our Robert Financial

you safe could So with start our Robert, harbor please disclosure? us

Mark. Sure,

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

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

Okay. Thanks.

website that we'll So then this we shareholder I'll of the more encourage overview start and points, allow for reading time we the letter posted with main an for to our questions. afternoon details. earlier

organize provide on Our main objective today is to information date, our clarity some plans. bring to you and up

more color 'XX fiscal Inmarsat more growth, strategy we're with highlights and into status of a for X our reminder overall with growth give And the into then behind up a business our overall, the update well EBITDA primarily positioned $XXX the in plan. us on and global depth operating little quick really in go-forward on and why Guru mobility. a revenue on those adjusted on update go the well quarter was quick which the bit and the that, of and putting and will start for They combined I'll I'll results, an government outlook. satellite So have quarter, good double in on commercial I'll market billion on And after financial of the give digits described and implications update give financial performance integration 'XX year basis. on an the a anomalies. give

track Just larger including succession at have esoteric positions and profitable beginning, specific, enduring for good of competitors. of segments, against in a much a the and record identifying somewhat building we context market

target indicative Links assets, and Data long-term accumulated, commercial to to of heritage for and along we've to think for leading customers focusing the aerospace in mobile and a to can our segments. this leverage a company do together specific of operational market I on transforming in-flight business that our decade, Tactical commercial U.S. bringing quantitative defense a connectivity had technology aim performance the also the it's global segments year ecosystems needed We domain build market on big data to government earlier with sale been on extensive win the Inmarsat's and knowledge critical while metrics mobile. for skills the growing of billion, ability broadband lead impact targeting and over rapidly it to the We this by and We've metrics. $X our market we've that value are about global and those

Our legacy financial financial performance across mobility. quarter good in and in Viasat Inmarsat. second the operating Core results both the at demonstrates business, global strength were

and the on then legal the that onetime was up satellite was combined XX%. a onetime of settlement, revenue benefit, benefit charges, basis. operating EBITDA And year-over-year litigation up Excluding adjusted excluding impairment operating a XX%

business, aviation Our steady continuous growth.

growing orders. and customers' antenna Passenger see secured modestly, is growing. and robust growing are still very growing. opportunities to and we've Our is of Maritime for momentum is of pipeline data centers got X,XXX planes we well. government fleet engagement build up new a assurance to and systems there. Information also products

calendar first fiscal adjusted is EBITDA growth in quite and positive during revenue 'XX. 'XX good. reach to anticipate cash and half Our outlook We flow and fiscal the 'XX year year continued free of also in

for deal setbacks, X, The anomalies. X different summer plans will And this result were Those satellite with they X to were to up go two events. write-off. and I-X totally in total we a X, So on the million shortly. of was each. of FX ViaSat-X, expected near-term to Inmarsat-X, be FX's have but was Inmarsat's to I-X newer to L-band revenue $XXX be planned a contribution coverage a redundant A to about part global satellites. insurers generation submitted evolution of will longer-term claim small. It

We have in disclosed as it that provision is replace updated FX nominal throughput. capital XX% I-X budget will a to total we manner. of X impaired, than in ViaSat-X expect less and mission a timely have our we of Flight recently,

million. calendar year We expect file an insurance to $XXX for this claim about

what's operated The satellite feeder of has the link the anomaly antenna. The to or called affected nominally date. rest better

them can for lot airports, characterizing more that affected especially throughput optimize we and instantaneous demand mobility, satellite use. available can made on airplanes so We for We've is use the or is there's the busiest gives tools a seaports, on can optimally. steering coverage dynamically and anomaly by beams greatest. to to system progress global Our wherever moving antenna lot which a ships of The software-defined compensate the focus on the us been ground, we has there.

each the We can increase way fleet ViaSat-Xs, in by also for capacity we our other the the including of of use mobility X. Flight satellites global our effectively

Our volume bandwidth launch fixed we position ViaSat-X. next until beam U.S. so decline of expect the it business on though and dynamic steering, we depends more than will on the

by Flight launch a and has Americas. over quarter outlook of ViaSat-X fourth now in ViaSat-X Flight government. would a driven and Either grow 'XX, global replace from fiscal contract X 'XX year X We and the or Flight backlog for in the expect X now. 'XX the fiscal mobility calendar X Flight to nonetheless, about

X and manufacturer Flight in antenna The antenna corrective Flight then Flight the for the to actions for to effective relocated integration be And spacecraft. then the from X planned awaiting next corrective root with cause is satellite week. the is report on X antenna actions and completed be would Flight then X

schedule we'll quarter. next So an that give on update

were when satellite higher that additional and that Inmarsat other services a designed in update the don't anticipate written fixed The was down asset. investment is to we've ViaSat-X, material we priority. It prior acquisition

accelerates is originally planned, our term the mobility, profitability. generation need on our ViaSat-Xs so in Given cash flow date and it out investment dollars than capital deferring free millions to hundred and saves the several timing improves the its now further focus on and near of

We future expect will a broadband performed was returns deliver applications. will better work that technology mobility satellite that on ViaSat-X that apply key in to

both of Flight Flight satellite learning a end is about assets remember The issues the $XXX much curve. X of the of was for write-off X X, due X schedule for Flight result million, than and The longer build net schedule insurance. or to COVID through X

cost I-X $XXX about Flight than So bulk Flight of higher X, to others. million The ViaSat-X its write-off X, capitalized interest. was due the is the of

strategy drive briefly our just we just And lead for global I'll on is have specific to segments customers go for commercial, to sure, Guru. market creation be our common to before mobility value that and our us. So characteristics that strategy touch government,

So and looking that wants for of measure where we're and connectivity travel. customers understand platforms need contractual needs for want broadband the they they the customers their connectivity And or overall, are is for they get assurance, places their that motivated looking whose times the and purposes. for to connectivity coupled to customers directly operational missions, quality those need

operational places congestion hotspots purposes. measuring where means those connectivity can their most stressed, that achieving that undermine and the is So times

financial then market. We them commitments and can a specific, granular mobile performance. need think data growing attract global and portion and by service-level large the describes serve and We giving customers meeting the their of to they insights that those own optimize

Our that our discovery success a the that over in strategy journey we've outcome with connectivity, customers. in-flight of applying taken of airline

And differentiate as their propositions each concentrated critical measuring engagement, airlines WiFi across First, highly from offerings high brand other widely of and to airlines also created that forms services demand both value by the good reliably. routes, airports then connectivity at it at with value where busy passenger and available demand their and in-flight quantifying finally, the and becomes haven't service airline other that elasticity while performed creation more becomes then really times that's different capturing peak for to and value connectivity. comes

into a So with points connectivity drive support of competitive the strategy. market dynamic our entire entire series we as coverage that Once the the steering of well to multiple market and ViaSat-X then and as the global customers translate change impaired it X significance constellation advantage, beam GXXXX challenges upcoming these the understand over capabilities hotspot measurements apply routes few and tends can segments. an across segments. even The to of Flight

in Atlantic So customers, resulting and this quarter new including continues with Force globally, more. some Porter Space U.S. Offshore, such it's Airlines, examples this business and Malaysian the resonate to with Korean and Air, Airlines as

customer our is reliable, and operational global of integrate emergency Inmarsat's L-band better a is strategy to coverage important low-cost, other highly suited well data devices. leverage to and and voice to for element opportunity our very L-band opportunity weather-resilient growing base differentiate The leadership. service of Internet L-band Things and our substantial satellite both and coverage overlap further the and There's there's mobile already terrestrial in broadband offerings. markets, mainstream to good integrated for between

is our term So outlook near-term and is even more growth exciting. good, longer

As refining and that closing strategy to value part with Inmarsat propositions of market make segments we're acquisition, refining comprehensive focused review our the sure the our on we're right resonate customers. upon

in deploy and into planning analytics aiming Investor describing that more investments we'll the our for. depth cash journeys XXXX, March the we're capital to complete global, We're flow the underpin those Day propositions value the we As an that and go generate customer take we of on where approach.

quarter. Guru, to hand our I who over about it now So talk second will

performance, financial our integration X I will transformation our on Mark. update outlook. and today: QX and our combined key Thanks, Great. an cover topics

year-over-year We and financial Viasat strong double both operational digits businesses. and delivered QX. contributions. performance adjusted our strong government, maritime grew well driven and Legacy with strategy aviation during are core our Inmarsat performed executing by EBITDA and on revenue both a and by Core

key capabilities be encryption services strong include highlights of up quarter, demand include Space services. million were IDIQ awarded of XX% quarter future Force Services constellation as And during our the Systems comprised and space LEO/MEO contract networks our Government relay U.S. for deliver may multi-orbit the quarter a of information drove satellite-based partner by proliferated current which program. as LEO year-over-year. solutions had the satellite as to that of will their assurance Some a part the we integrated revenue well another products, product $XXX from

National to IFC, and U.S. in continued status. declined evaluated revenue growth interface service, up using backlog. we which data-at-rest solid successful, the X,XXX our state industry SSD aircraft on residential factor fixed XX% Satellite are fewer cryptography hardware-encrypted by standard the a U.K. trends combined subscribers in top which partially ARPU. Next, was Recent aircraft with Security only quarter offset year-over-year ended as and form commercial Cyber next-generation Centre strong higher in X,XXX with the in broadband basis attain Services were and for secret classification, drive

rapid continue We IFC to to reallocate growth. bandwidth support

and aircraft, XXX-X Airlines' air continued both our Korean Air's additional several up vessels Maritime includes selection orders Mark IFE for Porter modest IFE about platforms, earlier: updates, customer Airbus over mobility The new announced Embraer upcoming aircraft for Ka-band commercial new we our IFC as mentioned Airlines' growth. its of revenue on for which solutions XX,XXX, addition, sequentially. AXXXneo aircraft Boeing total of solution solution selection to grew X% and In aircraft. and IFC its Malaysia EXXX-EX

XX% Finally, quarter $X.X awards were quarter at the Backlog to up end. billion. was billion year-over-year for $X

same Commercial prior We the segment, related product $XX of In the EBITDA revenue have of benefit million and couple settlement. a benefit revenue the to nonrecurring result recognized million and million of In of million $XX adjusted $XX period, $XX recorded one-off of to EBITDA as we a of a we in adjusted QX. litigation. items year litigation Networks

We satellite also anomalies, capitalized previously asset to which million of charges the announced impairment of approximately related announced interest. $XXX includes million primarily $XXX net

continuing was million in of Now QX XX% This billion. was some operations FY financials. to revenue color QX from up revenue compared FY $XXX XXXX. on XXXX $X.X the

net years related continuing increased increase Excluding primarily which litigation from fiscal year ago operations. from revenue in QX net the from impairment million EBITDA for anomalies. the an loss and year-over-year benefit loss years, Adjusted year-over-year. the Net up of $XXX to to was in $XXX XXX% for million, charges satellite was due period totaled asset $XX quarter XX% Inmarsat both nonrecurring million both XXXX including QX,

benefit months at announced. both QX XXXX years, both Sequentially, year-over-year. including impairment time the net favorable from XX QX of XXXX, was EBITDA X.Xx in which decreased last acquisition plan adjusted Excluding substantially and a Inmarsat XX% as X.Xx leverage sequential estimated Inmarsat the and years, combined to nonrecurring FY litigation charges is asset improvement the to was EBITDA the adjusted FY approximately up

to we We more funded positive on liquidity, free $X and have have approximately billion than And cash of with fully path a end and no including significant financial $X our sheet cash flexibility maturities. at of cash balance quarter equivalents near-term billion flow.

gender were recognized Summit In the access at our and year's the our close solid the this proud of to government to remote divide be U.S. to also help results, work in women for GXX addition areas we Internet to by bring digital world.

find a posted of excellent Mark in letter well, as today. quarter more our as this you You the can Viasat. Overall, results shareholder which for review that complete an was from heard we

Now transformation. the which topic, moving is to and next integration

for labor line achieve of the Our combined that positions XXXX, which a savings plan of and million acceleration expense we approximately the the targets. organization of forward. and Last required to time represents integration profitability beginning operating to This took fiscal our annual greater of actions the is company multiyear $XXX Inmarsat and transformation our going ahead year certainty acquisition. relative improved going Inmarsat the goals will exceed our synergy for well, bringing week, we deliver is

to was our billion month. included capital in last $X.X 'XX billion Separately, $X.X the FY expenditures to of announced benefit guidance

to these expect costs onetime related million $XX actions. We of incur to

financial a timing closer improve As capital benchmarking our procurement the of opportunity expenditure look accelerate cash flow. magnitude are our at we and remains third-party free working priority, discipline every structure top and more taking including disciplined a operational to efficiency, spend, to and cost

high-level outlook. outlook. summary wrap transitioning Now a to I'll our with up of financial

We are our today guidance. announced impairment nonrecurring and benefit settlement from charges the excluding from the litigation satellite

billion. For we XXXX to a percentages FY expect the for growing of with combined range in the company, high revenue growth over XXXX, FY $X.X $X.XX to billion revenue single-digit

FY over the company. for combined the For growth FY in percentages adjusted EBITDA single-digit XXXX XXXX, mid we expect

We expect a $X.X adjusted billion billion. FY range $X.XX to to EBITDA to grow of XXXX

we include approximately FY of continue of to expenditures our billion expenditure FY decline capitalized guidance. both revenue not a billion benefit the capital In adjusted $X.X and $XXX a in $X.X inclusive XXXX, expected expect we FX insurance to potential of replacement. funding include be then FY $X.X to XXXX for expected I-X grow. guidance billion, to recoveries. interest the that in XXXX Capital placeholder from EBITDA million to are an does Note CapEx range

and our positive Our and natural launch government, from year decline path from cost sourcing first driven markets, satellites. backlog, and free as growth includes by disciplined a calendar which meaningful aviation to maritime, our which CapEx growing half cash rationalization is in we our the realizing flow of the sizable of large spending, XXXX benefits realization

magnitude increase synergies, FX driving meaningfully and cost We are scale with cash ViaSat-X FX free structure flow improvements place as to is the satellites benchmarking. we expected And of and into service.

it. So there you have

we've and and setbacks, very we hand, unfortunate we strong satellite the While a had optimizing are growing good we assets have have.

global based months Inmarsat to and our 'XX. business. mobility And 'XX, XX Our in FY EBITDA adjusted achieve grow track then synergy to on growth value combined in powerful to was performance company excellent, we of the creating expect FY in while material QX are and is FY and and 'XX operational a revenue 'XX a very be full FY government clear, on

to that, Mark. I'll With pass it back

for Guru. that, we'll I Thanks, up with open think it questions. And Okay.

the We'll from Phil Cusick, question first JPMorgan. take Instructions] [Operator

if couple, I a can. guess I

you it Does the for off on a time? First, from satellite? about broadband to focus statement cash sheet on and in? on was want away Or mobility, balance the some and needs? just Or cash talk of long the There's a that? then debt this the that of on the can more a make the discount. to at the move ViaSat-X and timing home for is pick viability capital plans to insurance the proceeds the balance from coming And have sense second, you sheet decision do

Okay. Yes.

really our targeting been dealing with now -- and or competing we from since broadband -- customers really with started to ViaSat-X. the tricky suited the market the that. And that and launched as think that, and of concentration have that's maritime about in because First we really we long thing ViaSat-X is a that probably been not that with services come well And we're And problem. demand, do government the subsidies. dealing ViaSat-X, Inmarsat in to we've other it's hard we're We mobility the -- was factor especially the original of in-flight that What mobility really design as to for business light, of value that the going the about customers' to we amounts data large as usage requires. really in experience ability global cost. be in bandwidth better, for same on the we're the coverage leveraging the bulk and put at demand whereas is low the have patterns

next X the we So we will over in years. that feel be Ka-band can satellites that like about X got better we've do launched other

it on later markets bring made a felt on focus market satellite to mobility decade. following economic then to we of new complete So at end the and broadband the sense mobility those those

the can Phil, question hit the on balance cash sheet. I on your

given couple So investments make given to tax on if stay very want is just you net I balance there -- just liquid think as we sheet, I the the the interest get agility and think things. carry -- that about the of think been able of One, to markets expense that of and keep the the in it's in flexibility. carry, the painful liquidity a to net good want to and impact we've not I benefits and position a the credit

us And right so now. that's kind a of for guidepost

Next hear Securities. Crawford, up, we'll Mike B. from Riley

that way any this but requirement them, is Network how improve ongoing to what guess, award licensing Cisco got employees. and EBITDA. that, In coding so their going might Commercial be of Networks, or it Acacia that settlement last? won also you long Commercial you to some its install settlements the you there's when you've structure sold that can I there -- royalty might X and against But have with quantify jury Is this co-founder emailed ongoing now

some but from agreement the of have confidential. ongoing are do we the benefits the Yes, agreement, terms

we So the details can't there. give you really

though. included have the benefits we We and the outlook expect

Okay. ViaSat-X I satellites. FX status and FX And then guess, the of, regarding the

So these reflector a steps got it if move ahead, so is the component. you the there -- of you're week? say, be we attach some timing clear is quantify potentially let's you say, can final all next waiting there way know could a Like launch, how to -- when that of to

information of pretty on going schedule will to delivery. what delivered is Boeing for we're week for the more to integration reflector is be The thing once next reflector Yes. the get lead clear. that The time it's that

have additional to in -- back how think to and process of we out, use the deployment better find data understanding to a we'll very measures get what have We'll we'll there's I next that we We good we failed then discussion. deployment. on what and And potentially think up. even have step avoid the speculate. that the -- those be could That's it'd that before

quite For launch was been over was the We has since long the a I vehicle that's -- availability, X a contract, that Flight driven launch availability. last time the really launch the for for same time. window QX, X, think Flight reported, executed we by schedule -- on which and -- we

them very figure So that time X in. end that if up be was one, that how the I we that same the the prioritize, could will being it satellites the to confident think, both the out how at or is close to just together, we're pretty prioritize which do them we'll issue out turns if extent one case. -- Then

ones. quick Okay. just two maybe And then really

that in services? services. show new? would Is And up satellite Force that something is that systems that's or Space mentioned something You government mobility be

is networking it's our our in up -- would and bit more That for and It's to technology little Systems, networking it services, us, it's show yes, a services, new. both. and new Government unique

IP way mobility launching, the capacity we did would ViaSat-X, Ka-band the just, it what that I to put first the say was Is any would no that but some -- I that. to then satellite the in these one any a hear supposed there's that versus And Okay. in next of be see of those heard? even innovations would is ViaSat-X, are it in though sevenfold after give you X of kind last from correctly increase that satellites

Yes.

the hopping really very well dynamic all some getting completion. close broadband. So deliver this we're able presentation beam least that mean, very the just distributions X to GXXXX -- under discussing raw capacity but match we're are overlaid go -- on demand is field is also really, those at which are will thing the construction satellites already, in large in we improving. patterns really GXXXs and the seeing I underway. are time they're shareholder next-generation of being top on are -- pretty those that the into we Those well, that focused in and are of our the techniques to The not markets, the view on in improving main mobility that these the spent We're -- But September. capacity valuable. ViaSat-Xs

value we that, so better creation. a think And for that's metric

we question a up, from James. have Next Ric Prentiss, Raymond

pieces appreciate guidance dollars. rates helps But one, of I there's moving lot also obviously. clarity, there, understand first, helping quick of because too. but growth the That One us us a kind really

heard I or the revenue? -- ask guidance revenue that you exclude this the the Does question think fiscal include me 'XX way. let the I litigation would the and guidance exclude revenue just say

Go ahead, Shawn.

the Ric. nonrecurring excludes part that, That Yes. of

percentage, The yes. growth

range growth percentage. the The and

the nonrecurring think... of effect I the excludes That for And Acacia. Both. Yes.

Okay.

-- dollars go ahead. the So yes,

Yes, thing months include of Inmarsat. dollars just clarify, one I to was Ric, going and only the to XX say,

the are XX month? XX month, Whereas percentage apples-to-apples,

a Or yes. trend,

Exactly. Right.

the that Good. litigation, Yes, as revenue and Good. because picked the excluded shareholder in so Okay. excluding EBITDA is letter, the was up the I well.

revenue mid-single 'XX, there kind tease a On to EBITDA what digit, growth we over single fiscal teens? be, also. low and in high we single-digit, cool. code? 'XX comparison talking would that XX-month And mean? think, What of I does is Are Okay, should think grow in ZIP a out digit, fiscal about, XX-month way any

on Ric, point. that we commenting not at this Yes, are

are... we think I

think I next quarter.

it. clarity, given quarter, you more on closer to We'll better yes. be next be closer give quarter, Next It'll we'll be range. a we'll --

Okay.

think question a mean to to of go these even I aviation, little on We used best use heck, the a call the was I industry, bandwidth, a lot. I the helps long buck satellite it your Okay. GAME: after for best bit And for Phil's was then when areas. margin the maritime bang in of piggybacking and time, enterprise. there. better That government,

way think just lot stuff the how about As that businesses us financials in be into to from but the a you're to you satellite and lumping to is metrics? of services than different both government, how business, the running a business, more there the on you outside or understand informed might maritime are help does after, the enterprise and understanding me aviation, really like it feel it hard Because segments and probably the it. go modeling better manage it's

Yes.

we can understanding thing, think, growth your our business. if you see Ric, just with segment. And forward thinking think government about I So the one are how the question, it's I looking service things I'm in

we're So way that's you evolves. some look think I to about something at think But continue there. business insights I do to as think business get forward, going that I going the think the the we

also help CapEx 'XX what ongoing be can up way as you any total level growth and is, maintenance for fiscal thought of one about put then thinking CapEx? question about there? of an versus maintenance a about kind directionally what as kind We CapEx happens a 'XX is way of and 'XX we CapEx. from long in 'XX the appreciate last for the what think I And might what start get fiscal you code away, the the So thought, on is me business, lot seems us satellites to the ZIP

Ric, is downward. to to I best think about we're as the going to talked what that CapEx think continue way see we've just satellites we the the about just kick into get service,

'XX And what from to that's would well. so we as 'XX expect

or is Our is part our say but -- I should -- a CapEx of our to is spend. way capital the better maintenance CapEx maybe dominant satellite

off those you're And finish that's downward efficiency going that driving on fleets, how forward. so as we

little there. subscriber dominant The a ARPU net CapEx, maintenance that, is capita can of bandwidth consumption, the I think gains. per factor the about bit add

and markets. see consumption, the in you'll in consumer some you in-flight that the evident and these most not it's to them is extent you'll mobility things markets, that but same those In video see think connectivity like present So of effects, of still residential. same when passenger

bandwidth So get if business been satellite history, in satellites greater our the -- satellites of that's utility still residential the megabyte are like thing done demand. -- of productivity -- to from supply out yield our over And is for general really mobility look those That you gigabits kind from largely do we've of the the the to years, services of one lot in of per better from investment that mobility. the been then migrating XX well at having is in and able satellite. the the a we've the for improve satellite by is or matching things and

been our able out do better have a maintenance emphasis CapEx. I and degree, with So we've think, the growth even from all CapEx, on to pretty think you to go-forward teasing CapEx basis up high drive from mobility. growth kind of at But look those we'll factors to end I a to on

said I range point you FY as on billion years, you the other 'XX, you and would big to getting And of for billion $X.X next I as one is mentioned Mark. I the think what few at CapEx, know, look heard $X.X done add, from billion. $X.X in set if number then 'XX, satellites I Ric, are

to come launch FY as 'XX a these So broader so guidance we down perspective. from expect we do satellites,

an On dollar absolute basis.

yes. Yes. Yes,

as Okay. to And coming up look Day well. Investor March in the I forward

Ric. Yes. will. we Yes, Yes. Thanks,

Quilty from Space. Chris Quilty, The comes question next

New Carlsbad Investor or Day in York?

York. New

but give of just back of seasonal half a And add kind little or go-forward Carlsbad of in get there then year? fuel Is is market? year a on general And weakness been primarily to what Question are either nicer, into on the the still for adds you. a question thought or to of or Okay. a airlines timing? Has light just the easier or us York expect terms a or strong on IFC, just of quarter. that looking the is to. net IFC Is looked what's next pipeline in New prices temperament The aircraft it new to broader of rates going pipeline? of interest net number can rate general the aircraft that coming now you the board? because in like

Okay.

first the OEMs. both a airline's of look the from have been kind of aircraft, mean, if I which just rates X are of there perspective, schedule I'd -- on the of new from drags major have perspective. X the behind is One installs been On macro part, you kind from there delivery say

So -- and we've done well on line new contracts.

driven that's one -- -- the flights, line-fit, kind just the just the And -- the deliveries, allocated customers sort can discouraged of different has existing than of if that you the issues fleet. been the lower. existing I so the of or lower think OEMs factor look is aircraft be retrofits on ours. gauge some still is of airlines that how big of airlines mean the which by you and down among or from of fill which would And has other there's kind delivery at on And I slowed some that seasonal.

for still driven say mentioned good. us So it of good is more bit. has in-flight seasonality pipeline slowed would installs before And little more the on revenue, because the it's one is hand, passengers for for has new strong. down and airlines the part been demand. good Backlog And Shawn a is space, I that but really that

the market forward-leaning most been kind the on in-flight that connectivity. is probably put has of think way to I U.S.

becoming an that -- I strategies, That it's that monetization not doesn't it's it have right? expense to think just just there's be for airlines. the also clear

figure amenity more And on if the that airlines can combination. monetize really a is so from were better good the drawing that's in that lot sidelines out it, of both that I And get And is and think before. how interest a to they globally. maybe spreading

I guidance next the I-X possible understand. $X.X provision year, A clarification, say CapEx for to billion includes billion did a for a $X.X you the replacement?

correct. Yes, that's

X The old. the And Bus. the modern guess I-Xs Okay. are I L-band you've satellites, I-X timing-wise, Alpha years FX and XX got

satellites? in the an in that we're If the years, of enough does you looking L-band capacity coverage given X get satellite, order legacy that year age leave on the at time-wise next

Yes.

fuel? on good Running

Yes. Yes.

have same the around acquisition, earlier. -- arriving -- a of will besides the kind satellites Inmarsat, bit mean, time frame, X in announced the also I that fleet, I-X little of that maybe think, also existing right fleet be time We I -- of besides a we

would because GEOs? much those how And small capacity have then are those

services. We're focused having thing safety, capacity good we we when and those were really those the the thing -- existing the emergency next-generation capacity aimed about is safety L-band increasing extending the I-Xs on are that The L-band, But at satellites. reporting the capacity satellites big dramatically. of the the is basically on talk

budget really think, about So whole existing to of when that's part But shoring is talking a go-forward modernize that ecosystem in terms And of in and of up talk our on we're that we'll the separately about good, building CapEx part what ready. fleet. we're I fleet. basis

the that shelf agile, you. do the as internally you're And sort because it likely fielded? off something Got buy that final or question, they've software-defined Or that some sorry, is towards something likely that you from massive or and Space capability mean you're from that more mobility design does to mean, moving of -- have Airbus the already are satellites capable, I-X Alenia away ViaSat-X more that you'll internally? Thales I have the it's that and satellites of capacity

it, for so shelf At we're doing definitely ViaSat-X haven't of time the haven't that sure. on the what's off will have things the or But seen, on we off at technology shelf, far capability that we that doing the do the look seen we we we're X. available

to comparison. So a we're going do

do be -- things reduction. risk When risk we reduction, I we One as the some will budget as holding to by will well of risk risk years few schedule able is be to able say reduction. off do a we do also

do to scheduling following lot intend we of the So a better ones. terms in on budget

And can can and reduce that that costs we then some technologies also, improve really also there's interesting test productivity.

X the there everything was that are so that. well and enhancement an we're that anomaly, So those on at. of looking far some But -- just things has ViaSat-X, are worked absent

we that So expect. that play the something can way technology, on out draw if that's we things

Or Got was EMEA going decided ] to you that the EMEA? did it. [ whether and say Pacific And me, the to yet? have pardon Bird you satellite Americas

No.

them. we're prioritize meeting our on both. on have needs we're mobility of the We And going really that's focused to and how customers, options

Deutsche next Yu Edison from question. Bank the has

thoughts as the away you that any First, on thoughts on any pieces you have not the Inmarsat, Just maybe important, side? especially do kind various at updated may curious, be of peel L-band strategically there?

No. I mean very we in are we are interested really -- the L-band.

and international is off I shared to our these data different I we applications. long-term when think can And the and direct-to-device a really markets, What mobile. devices so with into defense, applications to IoT be and and voice that going safety objective government of market. and -- there'll operate very points. L-band is it's interesting see the that be really some IoT, Inmarsat both terrestrial there's the There's really has applied say there's market variety grow terrestrial mobile, U.S.

be really market that We're to able we that we to substantially. boost satellites soon. think kind to the that of aiming do of to do services satellite bring the And things mobile those can then to some existing market enable

the So interested we're think wants direct-to-device go the services, in, performs into who a anybody of of in that foundation We that's these good go somebody to wants markets. now. whole really range who for services to kind for Inmarsat

kind potential mentioned and I Do of going L-band? kind getting extra have think to the into And of you've that we Understood. paths about some -- using thoughts there. alluded DXD, on maybe updated in DXD forward, any you

Not yet.

today. going it have expect some, next that but we'll more quarter, to are on talk and not I to we're We working say more about about

one it. on then just And last IFC. Got one

public did And end. exactly bit on? Qatar the Is end what maybe -- So Can I Inmarsat's what think, with is our that of little there there Airways just at of -- think they over going a confusion, that Starlink. is and there from Or or happened a you kind what some Starlink? were I least over? go of like shift exactly on from was one customers, announcements

I for want speak don't speak to don't to -- think we probably them. we to Well, want ask think I best them on this.

DiPalma, Next Blair. William question comes from Louie

percentage the residential What as be of XXXX seems by it the end fixed you're it? revenue of that will broadband deemphasizing fiscal

Yes, in can Louie, jump I here.

right, bandwidth so as forth think that less and with is IFC to what our is to past, with and in we've the our growth -- continue Inmarsat that about of than XX%. continue So is we the work our supporting combined in I business part the slow to expect our And prioritize with talked downward. business, you'd

disclosed you fourth said XXXX. I calendar Okay. able with? procure quarter that who to launch ViaSat-X that contract launch the Have you for for Have in And you think insurance been the of is also third launch?

On generally, they just make to we launch provider, the release sure the cooperate it. we to want release. a put out that press for will mean launch I the providers with approve

the we'll near that in future. So do

On the insurance?

in Insurance? Yes, there. can jump I

that of insurance done, I second starting and kind reminder, wrapped just the So the a the Louie, on to next And one. as already good that we're think satellite, all but on process, we're to one is have in that's second up. work

to oriented. very add just -- the -- be the insurance on to mean, I detail then be And tend that, just to to insurers

Flight they're week different the insurers manufacturer have it's that review a for to tend with manufacturer satellite, a in X antenna X, be the that's even than -- really details. Flight though going interested we're next the So to antenna different

help what think that will with And details that understand those available place them the us so and I insurance. help having in will happened

CapEx And as that could it ahead it million? assume the number? would don't 'XX? to cost fiscal So a go you could subtract $X.X estimate I-X What from with elect to to that that, CapEx the satellite billion good just you fiscal relates your it to Great. 'XX the $X.X around be if for billion guidance, $XXX replacement is

No.

fiscal what been year. mission budget have spent 'XX, replacing be in would fiscal that was the would the of For portion that in that

have what be? you Do estimate that on would an Okay.

yet. do going not We're No. that to

multiple and to simplify are We aiming we're evaluating it. options,

not are So decision. ready not we the right again, -- we going yet. that to We're make sure we're make

And so give premature to that. dollar a just it would for be value

final one one. And Okay.

to As in and ARM partnering relates be the Inmarsat that partner it previously it -- and future with you established partnerships continued chip was the effect, you for those partnerships Skylo with such direct-to-device, seems Skylo's chip MediaTek. they've initiatives? would, Have Samsung's that direct-t-device

you'll ecosystems of direct-to-device, we've see you're others. which devicemakers the role spectrum to us there. satellite quarters. a for they're to Yes. yes, network, think market narrowband And think really especially And IoT, going standards. and you chipmakers, think before, different I a the got as generations see kind and to around to within that members described next come interesting all I holders, one, play, play attractive are mentioned those will mean of think has of definitely current evolve the those is ones going there I and operators ecosystems. there's And include Inmarsat role be like soon, The I to nonterrestrial we

our [Operator Instructions] And closing additional I'll or any speakers conference hand the to remarks. for back

Okay.

We're kind a XX% on were places adjusted afternoon. even we of year-over-year growth so So challenging we commitments good, far. global of on very that's confidence got thanks, doing most and everybody, generated few service-level built granular the have and a and We've I basis. a on -- integration from the especially resonated XX% us. customers, the insights on to clear like-for-like market. think and competitive bringing want and of with U.S. in We're program. going That's the for the mobility in this Inmarsat think global think to and good in-flight work meaningful revenue the remind ahead value proposition markets And joining times. aviation, government, budget same well EBITDA maritime of year-over-year ahead for a schedule quarter. to we analytics, growth results you just we We in kinds of and that's really felt us important takeaways

lot year become flow and positive cash that guidance continue more 'XX adjusted our next and aiming 'XX. to quarter get taken fiscal in revenue think a steps to And fiscal there. confident we're cash give free that will the business flow of 'XX. 'XX. calendar for first the get to half We'll to and EBITDA of we grow additional We've We're meaningful need during And we'll sustainable think year on we free 'XX. going in FY we're

the back next I operator you on progress it And that, So look to quarter. now. I'll updating hand our to with continued all forward

you. today's you does all And again, participation. Thank once that conference. your Thank conclude everyone, for

You may now disconnect.