Friday, May 11, 2012

Boingo Wireless ( Nasdaq - WIFI ) -- Solid Q1 Results

Boingo Wireless (WIFI $10.00) reported excellent on target Q1 results.  Earnings rose 40% to $.07 a share.  Sales advanced 15% to $24.2 million.  The company's legacy consumer business continued to slide as more locations provide free WiFi service.  On the plus side, Boingo is the leading provider of those WiFi systems.  Some of those sites still charge users for access, dividing the revenues with Boingo in some cases.  More often the company is paid to install and manage the networks.  Tablet and smart phone traffic is continuing to rise faster than cell phone networks can keep up.  A rising percentage of that activity is being offloaded onto Wifi hubs like those the company provides.  Penetration of international markets promises to leverage performance in upcoming periods.  Formal relationships with the cell phone networks could accelerate growth further.  Our estimates are unchanged.  Contracts with one or more major carrier could propel results substantially higher.  Trials are likely to begin later in 2012. 

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