Boingo Wireless Stock Up 100%+ Since March, Could Double Again Boingo Wireless Inc (NASDAQ:WIFI), the largest operator of indoor wireless networks in the U.S., has... Boingo Wireless Inc Up 43% in November; Gaining Traction in 5G

Boingo stockBoingo Wireless Stock Up 100%+ Since March, Could Double Again

Boingo Wireless Inc (NASDAQ:WIFI), the largest operator of indoor wireless networks in the U.S., has seen its share price trend significantly higher since early November, following news that three pharmaceutical giants have developed COVID-19 vaccines.

WIFI stock is up 18.3% year-over-year and up an impressive 103% from its March low of $6.66.

There’s still plenty of room for Boingo Wireless stock to run. It needs to climb 18% just to get to its previous year-to-date high of $15.92 and climb 167% to match its September 2018 high of $35.98.

Those possibilities are certainly not out of the question.

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While Boingo Wireless Inc’s retail and advertising business has been hit hard during the COVID-19 pandemic, it has, nonetheless, been winning deals and getting work done in venues that have been experiencing lower traffic during the pandemic. This includes typically high-traffic areas like airports.

A return to economic normality following the pandemic should help WIFI stock return to its winning ways.

Chart courtesy of StockCharts.com

WIFI Stock Overview

Boingo Wireless operates the largest indoor wireless network in the U.S. The company acquires long-term wireless rights at key venues, deploys wireless networks at those venues, and monetizes the networks with a unique set of products. (Source: “Investor Presentation, November 9, 2020,” Boingo Wireless Inc, last accessed December 1, 2020.)

The company started out as a supplier of Wi-Fi hotspots at airports across the U.S, but it diversified itself years ago, adding its distributed antenna systems (DAS) to other kinds of venues.

This includes train stations, bus terminals, music venues, convention centers, stadiums, multi-family housing,  military facilities, government buildings, and commercial real estate.

Boingo Wireless Inc is the largest operator of airport Wi-Fi and DAS networks in the U.S. From airports, to train stations, to bus terminals, the company helps more than one billion travelers stay connected every year.

In terms of stadiums, its wireless technology is at Soldier Field, the Hollywood Bowl, Kansas State University, State Farm Arena, University of Arizona, and University of Houston.

The company’s 5G Wi-Fi services are in more than 2,000 buildings in more than 60 Army, Air Force, Marine Corp, FBI, and Homeland Security Training Centers around the world. The company also has rights to build towers on military bases.

As of September 30, Boingo Wireless had a total of 73 DAS venues live, made up of 40,800 DAS nodes and an additional 11,600 nodes in backlog. This compares to 71 venues live, comprised of 37,200 nodes, as of September 30, 2019.

Over the past few months, Boingo Wireless Inc has:

  • Signed a long-term agreement with San Diego State University
  • Announced the deployment of the first-known airport-wide Wi-Fi 6 network, at São Paulo/Guarulhos International Airport
  • Launched managed Wi-Fi services at The Reef at Winkler, a new luxury multifamily community in Fort Myers, FL

Large, Untapped, Addressable Market

Despite its vast footprint, Boingo Wireless Inc still has lots of room to expand. In the U.S. alone, there are more than 20,000 addressable DAS venues and more than 400,000 potential indoor venues ripe for small cell deployment.

Venue Type

Venues for Small Cell & DAS

Available DAS Venues

% Penetrated

 

Remaining Addressable DAS Venues

Transportation 5,000 800 63% 300
Stadiums & Arenas 3,000 500 40% 300
Higher Education 3,000 1,800 11% 1,600
Hospitals 4,000 1,400 7% 1,300
Hospitality 60,000 7,500 5% 7,100
Retail 334,000 10,000 4% 9,600
Office Buildings 23,000 3,300 3% 3,200
Total 432,000 25,300 8% 23,400

5G Services at San Diego State University’s New Stadium

In early November, Boingo Wireless announced that it was selected by San Diego State University to design, build, operate, and maintain a 5G-ready, neutral host cellular DAS network for the university’s new multi-use Aztec Stadium. (Source: “Boingo to Launch Cellular Services for San Diego State University’s New Multi-Use Stadium,” Boingo Wireless Inc, November 2, 2020.)

Construction is set to be completed in time for the 2022 NCAA football season.

As a neutral 5G host, all Tier One cellular carriers can access the network. No matter where you are in the stadium, or who your service is with, you’ll be able to access the Boingo Wireless network.

Aztec Stadium adds to Boingo Wireless Inc’s growing DAS portfolio of NCAA, NFL, NBA, and MLS stadiums in the U.S., and expands its network footprint to more than 30 venues in California.

Solid Third-Quarter Results

On November 9,  Boingo Wireless announced that its revenue for the third quarter, ended September 30, increased modestly to $58.8 million, from $58.7 million in the second quarter. It slipped 9.2% year-over-year from $64.7 million in the third quarter of 2019. (Source: “Boingo Wireless Reports Third Quarter 2020 Financial Results,” Boingo Wireless Inc, November 9, 2020.)

Of that total revenue, the company’s retail revenue of $2.1 million was down 13.0% sequentially and down 43.5% year-over-year. Advertising and other revenue of $900,000 was up 34.3% sequentially but down 64.0% year-over-year.

The company reported a third-quarter net loss of $3.0 million ($0.07 per share), compared to a net loss of $5.8 million ($0.13 per share) in the second quarter of 2020 and a net loss of $200,000 (breakeven per share) in the third quarter of 2019.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $22.5 million, up 5.7% sequentially and up 2.9% year-over-year.

Analyst Take

Boingo Wireless stock was on a tear in November, soaring more than 40%. While the company reported solid third-quarter results, investors seem to be more impressed by the number of new agreements that Boingo Wireless Inc has announced.

And as I mentioned earlier, WIFI stock has been trending higher since major pharmaceutical companies announced that they’ve developed effective vaccines for COVID-19.

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