Viasat inc. VSAT has been awarded a prime contract for Ka-band satellite in-flight (IFC) connectivity solutions for the business aviation market in Brazil. The enhanced IFC services will deliver enhanced internet capabilities with the best in-flight entertainment options to attract more customers and likely help the airline industry gradually recover from the COVID-19 setbacks.
The business aviation market in Brazil would be the third largest in the world and would assume relative importance as the main gateway to Latin American markets. Business aviation is often viewed as an economic lifeline for areas where business transportation options are limited and contributes significantly to local and national economies. With pro-government policies, the business aviation market in Brazil is expected to experience healthy growth momentum, benefiting companies like Viasat in the long run.
Viasat will take advantage of its partner Ka-band satellite – SGDC-1 (Geostationary Satellite for Defense and Strategic Communications) – which is owned by public telecommunications service provider Telebras. This, in turn, will allow business travelers to enjoy high quality internet connectivity at speeds of over 20 Mbps for video streaming services and data downloading.
Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from take-off to landing. It enables aviation customers to strengthen their IFC investments and helps customers stay connected with smooth web browsing and streaming services. With unmatched speed and quality, Viasat’s Ka-band service has been specially designed to meet the increasing demands for data backed up by next-generation business applications. Ka Band leverages global bandwidth to provide cutting edge internet service with the best market prices to boost the competitiveness of the business jet market.
The growing popularity of high engagement IFC solutions has forced major airlines to seek new ways to use Viasat’s high capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and low-performance satellite providers. With an advanced level of internet connectivity, business jet operators in Brazil will offer customers the ability to stream all types of video content and seamlessly access free Wi-Fi onboard the air. This will likely sow the seeds for future entertainment enhancements and customizations on customer record screens.
Viasat’s Satellite Services business is progressing well, with key metrics including steady growth in ARPU (Average Revenue Per User) and revenue showing impressive growth. ARPU is growing through a strong retail distribution network, which represents an increasing proportion of the high-value, high-bandwidth subscriber base. In addition, the growing adoption of in-flight Wi-Fi services in commercial aircraft is proving to be conducive to business growth. Viasat has a competitive advantage in terms of bandwidth savings, global coverage, flexibility and bandwidth allocation, which will likely act as a profit generator.
The stock has gained 62.4% in the past year while the industry increased by 17.6%.
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Viasat currently sports a Rank 1 of Zacks (strong buy). Some other top-ranked stocks in the industry are Clearfield, Inc. CLFD, sporting a Zacks Rank # 1, and Motorola Solutions Inc. MSI and Ubiquiti inc. UI, both carrying a Zacks Rank # 2 (Buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Clearfield has posted a surprise profit of 49% on average over the past four quarters.
Motorola expects long-term earnings growth of 9%. It delivered a surprise earnings of 11.6%, on average, over the past four quarters.
Ubiquiti predicts long-term profit growth of 32.9%. It delivered a surprise earnings of 20.5%, on average, over the past four quarters.
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