Boingo Reports Revenue GainsThursday, February 21, 2013
Boingo Wireless Inc. on Thursday reported a slight boost in revenue for the fourth quarter and full-year as it begins to focus more heavily on its wireless network for mobile data. The Westwood company also announced that it bought a Wi-Fi provider in San Diego.
Boing said it had net income of $1.1 million (3 cents per share) for the quarter, down from $1.9 million in the same period a year earlier. Revenue was up 8 percent to $28 million.
For the year, Boingo reported net income of $7 million (19 cents), up from $4.7 million in 2011. Revenue was up 8 percent to nearly $103 million.
“2012 was a transition year for Boingo as we positioned our business to capitalize on the massive growth in mobile data and the evolving wireless ecosystem,” Chief Executive David Hagan said in a statement.
Boingo, which has more than 600,000 wireless hotspots worldwide, built its business as a provider of Wi-Fi to laptop users on 3G and 4G networks. But the company has made efforts to build up its mobile services and has also struck deals with cellphone carries to offload some mobile data on its wireless network, which lightens the strain on cell networks.
The company on Thursday also announced that it will acquire Endeka Group Inc., a San Diego provider of Wi-Fi, voice and television services to military bases and federal law enforcement training facilities. Boingo did not disclose terms of the deal.
Endeka will operate as a wholly owned subsidiary of Boingo.
“Their portfolio of venues and management team are natural additions to our managed network business,” Hagan said.
Before the earnings announcement, Boingo shares closed down 7 cents, or less than 1 percent, to $7.98 on the Nasdaq.