[Starlink] Starlink profit growing rapidly as it faces a moment of promise and peril (Ars Technica)

[the keyboard of geoff goodfellow]

"He wants to take food off the table of people—hard-working people."
EXCERPT:

Two new independent estimates of revenue from SpaceX's Starlink Internet
service suggest it is rapidly growing, having nearly tripled in just two
years.

An updated projection from the analysts at Quilty Space estimates that the
service produced $7.8 billion in revenue in 2024, with about 60 percent of
that coming from consumers who subscribe to the service. Similarly, the
media publication Payload estimated that Starlink generated $8.2 billion in
revenue last year.

These estimates indicate that Starlink produced a few hundred million
dollars in free cash flow for SpaceX in 2024. However, with revenues
expected to leap in 2025 to above $12 billion, Quilty Space estimates that
free cash flow will grow to about $2 billion. SpaceX is privately held, so
its financial numbers are not public.

*Growing subscribers*

By launching thousands of satellites and developing an Internet service
based in low-Earth orbit—where the proximity of satellites to the ground
provides significantly faster and lower latency service than satellites in
geostationary space—SpaceX has already exceeded space-based communication
networks developed earlier.

At the end of last year, Starlink had 4.6 million subscribers. Quilty's
director of research Caleb Henry noted that the previous incumbent players,
Hughes and ViaSat, had a combined 2.2 million subscribers at their peak
about half a decade ago, largely in North America, with some in South
America and a smattering in Europe. Starlink is expected to add another 3
million subscribers this year alone.

SpaceX has other significant lines of business, including government
customers, particularly the US Department of Defense, as well as maritime
(75,000 vessels equipped with Starlink as well as 300 cruise ships) and
aviation segments.

"The key takeaway I want everybody to walk away with is, if SpaceX was
building the Starlink system to pay for a Mars colony, we've got evidence
that the company will generate the type of free cash flows from the
business that could pay for said endeavor," said Chris Quilty, co-chief
executive and president of Quilty Space...

[...]
https://arstechnica.com/space/2025/02/starlink-profit-growing-rapidly-as-it-faces-a-moment-of-promise-and-peril/


-- 
Geoff.Goodfellow at iconia.com
living as The Truth is True
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