On October 19, 2023, Iridium Communications Inc (IRDM, Financial), a leading provider of global voice and data satellite communications, released its financial results for the third quarter of 2023. The company reported a net loss of $1.6 million, or $0.01 per diluted share, compared to a net income of $2.1 million, or $0.02 per diluted share, for the same period in 2022. The net loss was primarily due to costs incurred in connection with the successful refinancing of Iridium’s credit facility during the quarter.
Financial Performance and Highlights
Iridium's Operational EBITDA (OEBITDA) for the third quarter was $121.3 million, compared to $107.8 million for the prior-year period, representing a year-over-year increase of 12%. The company reported third-quarter total revenue of $197.6 million, which consisted of $152.0 million of service revenue and $45.6 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 7% versus the comparable period of 2022, while service revenue grew 9% from the year-ago period.
Subscriber Growth and Revenue
The company ended the quarter with 2,236,000 total billable subscribers, which compares to 1,973,000 for the year-ago period and is up from 2,140,000 for the quarter ended June 30, 2023. Total billable subscribers grew 13% year-over-year, driven by growth in commercial IoT. Commercial service revenue was $125.5 million, up 12% from last year’s comparable period due to broad-based growth across all revenue lines.
Company Outlook and Dividends
Iridium updated its full-year 2023 outlook, projecting total service revenue growth of approximately 10% for full-year 2023. The company also expects full-year 2023 OEBITDA of between $460 million and $465 million. Iridium paid its third dividend of $0.13 per common share on September 29, 2023. Dividends through the third quarter of 2023 have resulted in a total of $48.8 million in payments to stockholders.
Refinancing and Share Repurchase
During the quarter, the company repurchased approximately 1.4 million shares of its common stock under its previously announced share repurchase program at a total purchase price of $73.8 million. In September, Iridium completed the refinance of its credit facility, extending its debt maturity to September 2030 and reducing the interest rate by 10 basis points, which will reduce interest costs by $1.5 million in the first year.