But if the company was hoping that the end-of-week, pre-holiday timing of its filing with the SEC would enable it to fly beneath the radar of scrutiny, it was mistaken.
From the moment Gogo’s prospectus – with consolidated financial statements – was published on the SEC’s web site, people have been picking it apart in hopes of deciphering take rates for the company’s domestic US in-flight Internet solution and its revenue share with airline partners.
Gogo says that, from the inception of its service in August 2008 to 30 September 2011, it provided more than 15 million Gogo sessions to more than 4.4 million registered unique users, equating to roughly 4% take-up, notes NYC Aviation.
A separate industry source says: “[It’s] not explicitly stated but [it] looks like a 15% revenue share to the airline; and total passenger revenue of ~$70K per plane this year – i.e. a ~5% take rate.”
Is Gogo a good investment or does the firm need to persuade people that “spend per passenger will double in two to three years”, as suggested by our industry source? Have your say in the comments section of this blog.