Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 83

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 debt at a higher interest rate.

Income taxes

For the nine months ended December 31, 2024, we recorded an income tax benefit of $4.7 million, resulting in an effective tax rate of 2%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance, foreign tax rate differences, and decreases in our unrecognized tax benefits. For the nine months ended December 31, 2023, we recorded an income tax benefit of $128.1 million, resulting in an effective tax rate of 12%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a valuation allowance recorded against our U.S. net deferred tax assets.

54

Segment Results for the Nine Months Ended December 31, 2024 vs. Nine Months Ended December 31, 2023

Communication services segment

Revenues 

    Nine Months Ended

    Dollar

    Percentage

    (In millions, except percentages)
     
    December 31,2024

    December 31,2023

    Increase(Decrease)

    Increase(Decrease)

    Segment service revenues
     
    $
    2,273.5

    $
    2,036.9

    $
    236.6

    12
    %

    Segment product revenues

    200.0

    244.8

    (44.7
    )

    (18
    )%

    Total segment revenues
     
    $
    2,473.5

    $
    2,281.7

    $
    191.8

    8
    %

Our communication services segment revenues increased by $191.8 million due to a $236.6 million increase in service revenues, partially offset by a $44.7 million decrease in product revenues. The increase in segment service revenues was primarily due to the Inmarsat Acquisition in May 2023. The Inmarsat Acquisition contributed approximately $321.7 million to the increase in service revenues in our communication services segment, as a result of three full quarters of contribution compared to only seven months in the prior year period coupled with higher revenues contributed by Inmarsat in the current year period. The inclusion of three full quarters from Inmarsat, the Inmarsat revenue increase and growth in our aviation services were partially offset by an expected decrease in revenues from fixed services and other as we continued to allocate a