Viasat has indicated that it anticipates recovering less than 10% of the originally planned throughput on ViaSat-3 F1, one of its satellites that malfunctioned during deployment in July. Despite the reduced throughput expectations, Viasat expressed confidence in meeting customer needs without requiring a replacement satellite.
Cost Completion and Financial Projections
The company stated that it had mostly completed the capital costs associated with the ViaSat-3 satellite constellation. Consequently, Viasat’s capital expenditure (capex) for the 2025 financial year is anticipated to range between US$1.4 billion and US$1.5 billion ($2.2 billion to $2.4 billion). It further expects to achieve sustainable positive free cash flow during the first half of the 2025 calendar year, rather than the initially projected second half. This projection excludes the positive impact of satellite insurance proceeds.
Insurance Coverage and Claim Finalization
Viasat possesses insurance coverage of US$420 million for ViaSat-3 F1 and intends to finalize its insurance claim before the end of the year. The company aims to utilize this insurance coverage to mitigate the financial impact of the satellite malfunction.
Stock Performance
Following the malfunction in July, Viasat’s shares have experienced a significant decrease in value, losing up to two-thirds of their value, reflecting the impact of the satellite issue.
Viasat notably acquired British competitor Inmarsat in May, further expanding its global presence in the communications sector.