NEW YORK: Viasat forecast annual revenue below Wall Street estimates in anticipation of a slowdown in its satellite services business, sending its shares down more than 11%.
The company said it expected revenue from its satellite services to decline in the low to mid-single digits as its US fixed broadband business faces further competition from wireless carriers such as T-Mobile US that offers cheaper plans.
As a result, Viasat has been shifting its focus from fixed broadband to mobility business that provides satellite-based connectivity solutions to governments across sectors.
The company, which counts the US government as a customer, had acquired British rival Inmarsat in a US$7.3bil deal last year, as it looked to broaden its satellite and land-based communications services.
However, an uncertain economy and intense competition from rival satellite service providers such as Starlink have weighed on Viasat.
The company forecast revenue to be nearly flat for the financial year 2025 from a year earlier. Analysts were expecting a nearly 7% growth to US$4.57bil, according to LSEG data. — Reuters