Inflight connectivity (IFC) provider Gogo, which was once considering selling or splitting up the company, now expects to close on a large investment this year as it eyes major growth—a dramatic turnaround for a company seemingly on the brink of collapse just last summer.

Gogo expects to close a round of funding from strategic and financial investors by early May, on better terms than a round of debt and credit financing the company closed late last year during unfavorable debt market conditions, CEO and president Oakleigh Thorne said Feb. 21.

What is more, selling a division or more of the company now appears unlikely—a reversal of conditions prevailing when Thorne took over about a year ago.

“At this point, I think that is less likely as we have other approaches to dealing with our debt that we believe create more value for shareholders,” he told a quarterly teleconference. “Over time, we continue to believe that the IFC industry would benefit from consolidation and we would like to play a role in that consolidation from a position of strength.”

Thorne added that he sees growth potential for the company starting in 2020. But before then, the company will have to work through its restructuring, and it forecast lower consolidated revenue in 2019 than 2018, as well as about a $100 million cash outflow—albeit half of each of the last two years—and only moderately higher pretax earnings. Total consolidated revenue this year should be $800-850 million, with adjusted pretax earnings of $75-$95 million.

Total revenue for 2018 was up 27.8% to $893.8 million, compared to $699.1 million in 2017. Adjusted pretax earnings rose 21.7% to $71.2 million against $58.5 million in 2017. Net loss in 2018 decreased to $162 million, 6% better than 2017’s loss, primarily because of “strong” performance in its business aviation segment.

Michael Bruno, michael.bruno@aviationweek.com