Iridium Communications Inc. (McLean, Va., U.S.A.) on Tuesday reported financial results for the third quarter of 2011 and raised its outlook for 2011. Iridium reported third-quarter total revenue of $102.1 million, which consisted of $69.4 million of service revenue and $32.8 million of equipment, engineering and support revenue. Total revenue grew 8% versus the comparable period of 2010, while service revenue increased 11% from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium's subscriber base, was 68% of total revenue for the third quarter of 2011.
The company reported a net income was $11.3 million, or $0.15 per diluted share, for the third quarter of 2011, as compared to $10.7 million, or $0.14 per diluted share for the third quarter of 2010. Operational EBITDA (OEBITDA) for the third quarter was $54.6 million, as compared to $47.1 million for the prior-year period, representing year-over-year growth of 16%. The OEBITDA for the first nine months of 2011 was $146.1 million, as compared to $116.9 million for the prior-year nine-month period, representing year-over-year growth of 25%. According to Iridium, the increase in OEBITDA was due to growth in commercial service and government service revenue.
Iridium ended the quarter with 508,000 total billable subscribers, which compares to 413,000 for the year-ago period and 478,000 for the quarter ended June 30, 2011. Total billable subscribers grew 23% year-over-year.
The company announced it is increasing its previously issued full-year 2011 outlook for total billable subscriber growth, equipment revenue and OEBITDA. Iridium raised its subscriber growth from 20% to 25% for 2011, as well as raised its OEBITDA from between $180-$190 million to $190 million. The company’s original Equipment Revenue Growth outlook of 5-15% has already been affirmed for the year.