Starlink subscriber growth missed expectations, but profits didn’t as enterprise and government revenue surged
Revenue gains beyond consumers
Starlink, SpaceX’s major source of cash, reported mixed results. While subscriber growth missed expectations, monthly consumer revenue per user increased 5% from the previous quarter. Enterprise and government revenue rose 91% from a year earlier, reaching $2.1 billion. The figures show growth in business beyond consumer subscriptions.
Airlines add to customer base
Airlines are among Starlink’s important customers. By the end of September, 3,800 aircraft had been fitted with Starlink equipment, the company said.
Spectrum deal expands ambitions
On October 8, SpaceX announced an agreement to acquire a portfolio of low-band wireless spectrum from Grain Management. The spectrum could help Starlink become a direct competitor to Verizon, AT&T, and T-Mobile.
SpaceX had signaled carrier ambitions during its first-ever earnings call in August. President Gwynne Shotwell suggested the company was considering a cellular base station built on equipment supporting Starlink broadband dishes, rather than a ground-based system. Shotwell said she anticipated SpaceX would be able to acquire quite a few customers from mobile carriers.
Key points
- Starlink subscriber growth missed, but its revenue measures rose.
- Monthly consumer revenue per user increased 5% from the previous quarter.
- Enterprise and government revenue jumped 91% year over year to $2.1 billion.
- SpaceX’s spectrum deal could help Starlink challenge major mobile carriers.