Global Eagle sinks as interest expense weighs on profit

|About: Global Eagle Entertainment... (ENT)|By:, SA News Editor

Global Eagle Entertainment (NASDAQ:ENT) fell 13% today, giving up the week's gains, after yesterday's miss on profits in its Q2 earnings report.

Net losses widened from the previous year (to $45.9M) mainly due to higher interest expense, driven by issuing new second-lien notes (due 2023) to Searchlight Capital Partners.

Interest expense grew to $19.76M from a year-ago $14.8M.

Overall, cash and equivalents came to $37.4M for the quarter (down from $48.3M as of Dec. 31), while long-term debt sat at $633.5M (vs. $598.96M as of Dec. 31).

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