ViaSat (NASDAQ:VSAT) (+20%; +1.1%), an integrated satellite company, reported a substantial 7% increase in average revenue per user (ARPU) year-over-year. Customer churn declined with the company’s focus on higher value, stable subscribers. Additionally, news reports that American Airlines would reexamine its in-flight Wi-Fi contract with ViaSat’s competitor, Gogo, implied that ViaSat could win the new contract given its superior service quality. CEO Mark Dankberg is a large owner who has invested wisely in expanding ViaSat’s capacity and product lines. The company plans to launch a revolutionary new satellite broadband constellation (ViaSat-3) in 2019 that has the potential to further ViaSat’s lead in the industry. Although ViaSat-3 is not fully reflected in our appraisal, it offers significant longer-term upside to our value and the share price.
From Southeastern Asset Management's Q1 letter for Longleaf Partners Small-Cap Fund.
