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GLOBAL EAGLE REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2018
Reiterates 2018 Adjusted EBITDA guidance
Strong revenue growth and gross-margin improvement in Media & Content segment
Aviation Connectivity on track to accelerate growth in second half of 2018
LOS ANGELES, CA, August 9, 2018Global Eagle Entertainment Inc. (Nasdaq: ENT) (Global Eagle, the Company or we), a leading provider of media, content, connectivity and data analytics to markets across air, sea and land, today announced financial results for the second quarter ended June 30, 2018. For the second quarter of 2018, Global Eagle recorded revenue of $166 million; incurred a net loss of $45.9 million; and generated Adjusted EBITDA* of $20.4 million.
During the second quarter, Global Eagles market-leading Media & Content segment benefitted from strong growth in revenue and gross-margin improvement. Media & Content segment revenue grew period-over-period by 11.9%, with a second-quarter-2018 gross margin of 30.0%. This growth was primarily due to a ramp up in content programming for previously-announced new customer contracts as well as expanded content programming with several of our existing airline partners. We continue to believe that over the long term we can maintain gross margins similar to those generated in the second quarter of 2018 while growing Media & Content segment revenue by 3-5% per year on average.
Global Eagles Connectivity segment remains the leading provider of satellite-based passenger connectivity for single-aisle airliners and the leading broadcaster of live television to the aviation and maritime markets. Our aviation connectivity business continued to benefit from our substantial economies of scale, which helped to generate gross margins during the quarter in excess of our Companys overall average gross margin. We believe that our aviation connectivity business continues to demonstrate the highest levels of service reliability for our customers and elevate their passenger experience. We expect to accelerate our aviation connectivity installations in the second half of 2018. Our cruise business also experienced significant growth during the second quarter of 2018.
We continue to execute on our plan for a healthy core business, profitable growth and transformation, commented Josh Marks, CEO of Global Eagle. Our focus is on building a profitable aviation-connectivity installation backlog and enduring customer relationships. Our performance in the second quarter of 2018 shows our execution in both top-line growth and in improved Adjusted EBITDA margins.
Our second-quarter results demonstrate that our commercial success is driving improved revenue growth, said Paul Rainey, CFO of Global Eagle. We are also beginning to see the benefits of our operating-expense-reduction initiatives, which include integrating prior acquisitions and thereby lowering operating costs. We expect the cost savings from these initiatives to build in the second half of this year.
The following information was filed by Global Eagle Entertainment Inc. (ENT) on Thursday, August 9, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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