After spending a lot on international expansions, regulatory approvals and connectivity fees, in-flight internet service provider Gogo Inc. disclosed that it experienced bigger quarterly loss which sent its shares lower by 7% in Friday’s premarket trading.
Gogo’s Chief Executive Michael Small mentioned in a statement that the company has declared partnerships with Vietnam Airlines and Virgin Atlantic then entered into contracts with AeroMexico and Air Canada.
It was also reported by Gogo that its cash capital expenses increased by 21% which is equal to $29.8 million for the recently concluded third quarter of the year as it spent a lot for its business aviation unit and purchased a test plane to use.
The full-year capital expenditures forecast of the company was lowered to $100 million to $120 million from its initial estimate of $105 million to $125 million.
Overall, Gogo’s operating expenses increased by 24% which contributed to its huge third quarter loss.
As for the net loss, it amounted to $24.9 million which when computed would equal to $0.29 per share from what it reported last year which was $18.7 million or $0.22 center per share.
On Nasdaq trading last Friday, the shares of Gogo Inc. closed at $16.64.
The company’s stock lost around 1/3 of its value for 2014.