Globalstar Q3 revenue falls on lower service sales, posts net loss
GSAT•Globalstar’s third-quarter revenue fell year over year as wholesale and subscriber service sales declined, and it posted a $0.14-per-share loss. The company continues to suspend its financial outlook because of a pending Amazon transaction.
1. Revenue and loss
Globalstar’s third-quarter revenue fell year over year, driven by lower wholesale and subscriber service revenue. The company posted a net loss, with higher interest expense and lower income from operations weighing on results.
2. Mixed business trends
Commercial IoT subscriber activations reached a record, with gross activations up 25%, boosting IoT service revenue and equipment sales. Lower wholesale capacity revenue and declines in Duplex and SPOT service revenue, mainly due to subscriber churn, offset that growth. Higher marketing, general and administrative costs, including legal and professional fees related to the Amazon transaction, and higher network operating costs also affected income from operations.
3. Outlook suspended
Globalstar continues to suspend its financial outlook due to the pending Amazon transaction.
