With a new satellite on the way, and dominance in in-flight internet, Viasat is set to continue its incredible journey
Viasat Inc. is a company with a mission: to connect the world. To realise its dream of bringing high-speed internet to new locations, the company has created two satellites that provide broadband services to traditionally underserved parts of the world. Now, it’s building a third. These satellites proved good not just for internet users, but also for business. Rick Baldridge, Viasat’s president and CEO, said: “A lot of our growth has come from investing in assets like satellites that generate recurring revenue.” That, and growth in in-flight internet, could continue to propel Viasat sky-high.
Viasat’s share price has climbed by 52% s far year to date
Source: Yahoo Finance
Viasat is a growth story. Over the past decade, its revenue has quadrupled to $2 billion (in 2018), and its share price has climbed pretty consistently – this year being no exception. That’s reflective of a strong underlying business that’s characterised by innovation and outperformance. According to Baldridge, the company’s first satellite, ViaSat-1, which debuted in 2011, was listed in the Guinness Book of World Records for “having twice the capacity of all other communications satellites combined at that time.” Next came ViaSat-2, which provided internet coverage for North and Central America, as well as Europe.
ViaSat-3 is on the way. This “constellation” of three satellites (each one capable of processing a terabit per second) will supercharge the business. Understandably, Viasat is looking for new markets to conquer. It may have found one in the form of in-flight internet.
The driving idea behind Viasat is that the internet should penetrate everywhere. That’s a possibility, and a public good – but one that is not yet realised. Baldridge said: “We can literally help change the lives, we believe for the good, for a large part of the world and do it profitably; that’s the mission we’re on.”
Dominion holds Viasat in its Global Trends Managed Fund. Share price as at 20 May 2019.
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