Shares of Global Eagle Entertainment (OTC:ENT) jumped Wednesday after the company reported results for the first nine months of 2017. With this report and the subsequent quarterly filings with the SEC, Global Eagle expects to no longer be under threat of delisting from the Nasdaq. The stock was up about 14% at noon EST.
Global Eagle reported nine-month revenue of $460 million, up 23% year over year. The acquisition of Emerging Markets Communications in mid-2016, along with growing service revenue in the connectivity business, drove the double-digit increase.
Turning to the bottom line, Global Eagle reported a net loss of $222 million, or $2.57 per share. Total expenses soared 38.4% year over year to $619.9 million, due in part to a $78 million goodwill impairment charge, while interest expense jumped five-fold to $43.9 million. Adjusted earnings before interest, taxes, depreciation, and amortization was $48.3 million, up from $38.2 million in the prior-year period.
With this nine-month report, Global Eagle is no longer behind on its SEC reporting. "Today, we become current with our SEC reporting and will have met all of Nasdaq's conditions for continued listing," said Global Eagle CEO Jeff Leddy.
Shares of Global Eagle have tumbled over the past few years, down 85% from its five-year high even after Wednesday's rise. Global Eagle expects to lower its operating expenses in 2018 while improving margins and cash flow. But investors should remember that this is an unprofitable company that still has a lot of work to do.