Boingo Wireless Reports Fourth Quarter and Full Year 2012 Financial Results

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Thursday, February 21st 2013
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LOS ANGELES, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Boingo Wireless, Inc. (Nasdaq:WIFI), the world's leading Wi-Fi software and services provider, today announced the company's financial results for the fourth quarter and full year ended December 31, 2012.

Fourth Quarter 2012 Financial Highlights

Boingo Wireless reported revenue of $28.0 million, compared to $25.9 million for the fourth quarter of 2011, an increase of 8.1 percent.

Net income attributable to common stockholders was $1.1 million, or $0.03 per diluted share. This is compared to net income attributable to common stockholders of $1.9 million, or $0.05 per diluted share, for the fourth quarter of 2011.

Adjusted EBITDA was $7.3 million, compared to $8.9 million for the fourth quarter of 2011, a decrease of 18.1 percent. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and is reconciled to net income, the most comparable measure under GAAP, in the schedule entitled "Reconciliation of Net Income Attributable to Common Stockholders to Adjusted EBITDA."

Full Year 2012 Financial Highlights

Boingo Wireless reported revenue of $102.5 million, compared to $94.6 million in 2011, an increase of 8.4 percent.

Net income attributable to common stockholders was $7.0 million, or $0.19 per diluted share. This is compared to net income attributable to common stockholders of $4.7 million, or $0.17 per diluted share, in 2011.

Adjusted EBITDA was $30.6 million, compared to $28.6 million in 2011, an increase of 7.3 percent.

Management Commentary

"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," said David Hagan, President and Chief Executive Officer of Boingo Wireless. "Our full year performance benefited from growing and investing in our managed and operated and affiliated footprints, adding a crowd-sourced capability to grow our network even faster, investing in our software and technology platform in anticipation of cellular offload and increasing ad sales through the Cloud Nine Media acquisition. Subsequent to quarter end, we were pleased to announce that we have entered into a merger agreement to acquire Endeka Group, Inc. ("Endeka"), the sole provider of commercial Wi-Fi services to United States military bases and federal law enforcement training facilities. Growth in our managed and operated footprint within new verticals and segments is expected to contribute to the longer-term stability of our retail platform."

Mr. Hagan continued, "As we look ahead, we are excited for 2013, which should be a transformational year as we lay the groundwork for growth opportunities in our wholesale and advertising businesses. Over the course of the last decade, we have built a unique Wi-Fi and DAS business and look forward to deploying our platform to monetize the vast opportunities ahead of us."

Operational Highlights

Key accomplishments include:

  • The announcement of a merger agreement to acquire Endeka, the sole provider of commercial Wi-Fi, VoIP and IPTV services to six United States military bases in the West to federal law enforcement training facilities.
  • Agreements to manage and operate Wi-Fi services at five airports in Japan -- Haneda Airport (Tokyo International Airport) (HND); Narita International Airport, Tokyo (NRT); New Chitose Airport, Sapporo (CTS); and Fukuoka Airport (FUK); and three airports in Germany -- Berlin-Tegel (TXL); Nuremberg (NUE); and Stuttgart (STR).
  • A sponsorship agreement with Norwegian Cruise Line for free Wi-Fi access at select New York subway stations and John F. Kennedy, LaGuardia and Newark Liberty International Airports during the month of February.
  • An expansion of a pre-existing bi-lateral roaming agreement with NTT DOCOMO, INC. to provide Wi-Fi roaming and data offload services onto the Boingo global network.
  • The release of an enhanced version of the Wi-Finder app for Apple's iOS 6 operating system to improve the user experience and simplify connectivity at Boingo hotspots.
  • An award for "Best Wi-Fi Service" in Global Traveler's Annual GT Tested Awards, as voted by the readers of Global Traveler magazine for the second year in a row and the third time in the past four years.

Business Outlook

Boingo Wireless is initiating guidance for the first quarter ending March 31, 2013, as follows:

First Quarter 2013

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