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In-flight Internet provider Gogo raises revenue forecast

Monday, 11 Nov 2013 | 9:39 AM ET

Nov 11 (Reuters) - Gogo Inc, a provider of in-flight Internet, raised the high end of its full-year revenue forecast range as more airlines signed up for its service, sending its shares up 18 percent in early trading.

The company also reported better-than-expected quarterly results, driven by a 48 percent jump in revenue.

Gogo said last month that it would provide in-flight Internet service on Japan Airlines Co Ltd's domestic fleet of 77 aircraft, marking its first significant international contract.

Gogo supplies Internet service to about 80 percent of U.S. aircraft.

The company is also expected to benefit from the U.S. Federal Aviation Administration ending a long-standing ban on the use of certain electronic devices throughout the flight.

Gogo said it now expected full-year revenue of $305 million-$325 million compared with $305 million-$315 million earlier.

The company's net loss narrowed to $18.7 million, or 22 cents per share, in the third quarter ended Sept. 30 from $29.0 million, or $4.27 per share, a year earlier.

Revenue rose to $85.4 million.

Sales at the company's commercial aviation business in North America jumped 53 percent to $50.6 million, while those at its business aviation division rose about 42 percent.

Analysts had expected a loss of 30 cents per share on revenue of $76.84 million, according to Thomson Reuters I/B/E/S.

Gogo went public in June with an initial public offering price of $17 per share, the higher end of its expected price range.

The stock was up at $22.31 in early trading on the Nasdaq on Monday.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Kirti Pandey)