COVINGTON, La. - Globalstar (NYSE:GSAT), Inc. (NYSE American: GSAT), a company specializing in mobile satellite and communications services, has been granted a 10-year authorization to expand its terrestrial applications in Mexico. This development follows the company's successful bid in Auction #13 conducted by Mexico's Instituto Federal de Telecomunicaciones (IFT), which oversees the Complementary Terrestrial Service of the Mobile Satellite Service in the frequency range of 2483.5 to 2495 MHz.
The authorization comes after Globalstar's Mexican subsidiary, Mobile Satellite Services Mexico S. De R.L. DE C.V., completed the payment for the bid amount, concluding the regulatory process required by the IFT. This milestone allows Globalstar to broaden its services within the Mexican market, where it aims to provide enhanced connectivity solutions.
Globalstar's satellite and terrestrial network services are designed to offer secure and reliable data transmission, supporting a variety of applications for consumers, businesses, and government agencies globally. The company's terrestrial spectrum, known as Band 53, and its 5G variant, n53, are positioned to offer private networks additional licensed channels, contributing to improved wireless connectivity.
The company also markets the SPOT GPS messenger and develops IoT hardware and software products that facilitate asset tracking, data processing, and telematics solutions. These advancements are intended to promote safety, productivity, and profitability for Globalstar's customers.
The IFT's decision to grant this authorization is seen as a testament to the efforts of both the regulatory body and Globalstar to ensure a successful auction process. This agreement is based on a press release statement from Globalstar, Inc. and represents a significant step in the company's expansion of its terrestrial service capabilities in Mexico.
In other recent news, Globalstar, Inc. reported a record Q3 revenue of $72 million, a 25% increase from the same period last year. This was driven by a 28% rise in service revenue, including a one-time $7.5 million item related to performance bonuses. The company's adjusted EBITDA also saw a significant 34% increase, achieving a 59% margin.
Additionally, Globalstar closed a major deal with its largest customer, involving the creation of a new network and satellite launches planned for the upcoming year. The company also received approval from the FCC (BME:FCC) for a 15-year extension for HIBLEO-4 authorization, allowing for up to 26 replacement satellites.
Following these developments, Globalstar has raised its 2024 revenue guidance to $245 million-$250 million and adjusted EBITDA margin guidance to 54%. The company is also anticipating a $1.5 billion inflow from a prepayment agreement and equity sale related to the new network and satellite launches.
However, details on new services and capabilities are still under discussion, and the rollout of new capabilities with a global retail customer is dependent on the customer's internal processes. Despite these uncertainties, the company continues to focus on building long-term customer relationships and enhancing service offerings.
InvestingPro Insights
Globalstar's recent authorization to expand its terrestrial applications in Mexico aligns with the company's growth trajectory, as evidenced by InvestingPro data. The company's revenue growth of 13.58% over the last twelve months and a notable 25.35% growth in the most recent quarter suggest that Globalstar is on a path of expansion, which this new authorization could further accelerate.
InvestingPro Tips highlight that Globalstar has shown strong returns over various time frames, including a 47.06% return over the last month and a 45.83% price uptick over the last six months. These positive trends in stock performance may reflect investor optimism about the company's growth prospects, including developments like the Mexican authorization.
However, it's important to note that despite the revenue growth and market expansion, Globalstar is not currently profitable, as indicated by another InvestingPro Tip. This suggests that while the company is focusing on growth and market penetration, it may still be in an investment phase, prioritizing expansion over immediate profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a fuller picture of Globalstar's financial health and future prospects. There are 8 additional InvestingPro Tips available for GSAT, which could offer valuable context for understanding the company's position in the competitive satellite and communications market.
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