Global Eagle disappoints with only mild revenue growth

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

Global Eagle Entertainment (NASDAQ:ENT) fell short in its Q4 report, with revenues that rose fractionally year-over-year and missed consensus, and underlying earnings that missed.

Previously: Global Eagle Entertainment misses on revenue (Mar. 14 2019)

Operating expenses dropped sharply to $59.4M, though the comparison is affected by a goodwill impairment last year of $89M. Cost of sales rose 15%.

Net loss narrowed to $109.2M from $134.4M; this year's loss included a $51M noncash impairment of a joint venture, due to slower than expected adoption of growth initiatives, though the improvement was driven by the absence of the $89M year-ago impairment.

And EBITDA fell to $17M from $19.7M, affected by dropping gross margins.

Revenue breakout: Licensing and services, $145.7M (down 1.9%); Equipment, $14.9M (up 34.9%).

Previously: Global Eagle Entertainment misses on revenue (Mar. 14 2019)

Press release

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