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In-flight Wi-Fi provider Gogo raised its full-year revenue forecast Monday, citing an increase in North American aircraft outfitted with its technology and passengers wanting to use its service.
The Itasca-based company, which is moving its headquarters to downtown Chicago, went public in June and is not yet profitable. For the third quarter, it posted a net loss of $18.7 million, narrowing from a net loss of $29 million in the period last year.
Revenue growth was strong, jumping 48 percent from last year to $85.4 million in the most recent period. Gogo revised upward its full-year revenue guidance to $325 million from $315 million.
Shares in the company jumped nearly 29 percent, to $24.11, in midday trading on the Nasdaq.
Gogo said 2,011 commercial aircraft in North America were equipped with its Wi-Fi technology at the end of September, an increase of 24 percent from a year earlier. The company also saw a notable increase in its “connectivity take rate” from 4.8 percent to 5.8 percent. This figure represents the percentage of passengers on Gogo-outfitted aircraft that use the service.
The company’s business aviation segment, which caters to corporate and private jets, saw revenue rise to $34.8 million in the third quarter from $24.5 million in the year-earlier period. The international business, which Gogo described as “in the start-up phase” because overseas expansion began only last year, recorded revenues of $51,000. Gogo has agreements with Delta Air Lines and Japan Air Lines and said it expects to start generating service revenues from these partners next year.
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