Boingo Wireless (WIFI) saw its loss widen to $4.37 million, or $0.11 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $3.65 million, or $0.10 a share.
Revenue during the quarter grew 16 percent to $44.97 million from $38.77 million in the previous year period. Gross margin for the quarter contracted 229 basis points over the previous year period to 32.68 percent. Operating margin for the quarter stood at negative 9.06 percent as compared to a negative 9.04 percent for the previous year period.
Operating loss for the quarter was $4.07 million, compared with an operating loss of $3.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.31 million compared with $10.96 million in the prior year period. At the same time, adjusted EBITDA margin improved 353 basis points in the quarter to 31.81 percent from 28.28 percent in the last year period.
"2016 was an incredible, milestone year for Boingo as it was our largest venue acquisition year ever," commented David Hagan, chief executive officer of Boingo Wireless. “We signed 38 new venues to the Boingo network in 2016 and signed 43 Tier 1 carrier agreements. These accomplishments enabled us to deliver an all-time revenue high of $159.3 million, marking our third consecutive year of double-digit revenue growth."
For financial year 2017, Boingo Wireless forecasts revenue to be in the range of $180 million to $188 million. The projects net loss to be in the range of $29 million to $25 million. It company expects diluted loss per share to be in the range of $0.74 to $0.64.
For the first-quarter 2017, Boingo Wireless forecasts revenue to be in the range of $39.50 million to $43.50 million. The company projects net loss to be in the range of $10 million to $7 million. It company expects diluted loss per share to be in the range of $0.26 to $0.18.
Operating cash flow improves
Boingo Wireless has generated cash of $115.20 million from operating activities during the year, up 16.87 percent or $16.63 million, when compared with the last year. The company has spent $107.33 million cash to meet investing activities during the year as against cash outgo of $101.50 million in the last year.
The company has spent $3.12 million cash to carry out financing activities during the year as against cash inflow of $8.84 million in the last year period.
Cash and cash equivalents stood at $19.48 million as on Dec. 31, 2016, up 32.39 percent or $4.77 million from $14.72 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Boingo Wireless was negative $31.39 million on Dec. 31, 2016 compared with negative $31.80 million on Dec. 31, 2015. Current ratio was at 0.68 as on Dec. 31, 2016, up from 0.66 on Dec. 31, 2015.
Debt moves up
Boingo Wireless has witnessed an increase in total debt over the last one year. It stood at $25.57 million as on Dec. 31, 2016, up 17.73 percent or $3.85 million from $21.72 million on Dec. 31, 2015. Total debt was 6.71 percent of total assets as on Dec. 31, 2016, compared with 6.37 percent on Dec. 31, 2015. Debt to equity ratio was at 0.26 as on Dec. 31, 2016, up from 0.19 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
