Global Eagle Entertainment Reports First Quarter 2014 Results

Global Eagle Entertainment Reports First Quarter 2014 Results

  *Strong Revenue Increase of 55% and Adjusted EBITDA* Growth of $5.6 Million
    over Pro Forma** Q1 2013
  *Acquired all Remaining Outstanding Shares of AIA in Q2; Expect Significant
    Integration Synergies
  *Continued Growth of Content Segment's Global Customer Base With Key Wins
    at Garuda Indonesia, Air France, Turkish Airlines, Among Others
  *Strengthened Leadership in Providing Digital Media To Travelers by
    Offering Live UEFA Soccer to Cruise Ship Customers
  *With Partner Thaicom, GEE to Launch Connectivity on NOK Air in Thailand,
    Increasing Footprint in Asia
  *Gate-to-Gate Connectivity on Southwest Airlines Increased Number of
    Simultaneous Users by 30%; 25% of Data Now Consumed While Aircraft are on
    the Ground
  *Strong Balance Sheet with over $250 million in Cash and less than $8
    million in Debt at Quarter End; GEE Board Approved the Purchase of Up To
    $25 million of Outstanding ENTWW Warrants

LOS ANGELES, May 9, 2014 (GLOBE NEWSWIRE) -- Global Eagle Entertainment Inc.
(Nasdaq:ENT) ("Global Eagle", "GEE" or the "Company") today reported financial
results for the first quarter ended March 31, 2014.

"We are pleased with our first quarter 2014 performance, as we continued to
build on our leadership as the top supplier of content and connectivity
services to the worldwide airline and travel industries," said John LaValle,
Chief Executive Officer.

"Global Eagle set out to become the leading provider of digital media to
airline passengers and other travelers. During 2013, we acquired two top
providers of content and content services, and we finalized our acquisition of
AIA in April 2014. We have solidified our position as the leader in supplying
media content, and we continue to deploy our best-in-class connectivity
solution," commented Dave Davis, Chief Operating Officer and Chief Financial
Officer. "As the number of connected aircraft proliferate around the world,
GEE is positioned to become the digital media provider of choice, regardless
of platform. Our international business is strong and growing, evidenced by
our signing of several major content deals with international carriers during
the quarter, including Garuda Indonesia. Of the twenty-four connectivity
installations we made during the quarter, twenty-one were with non-U.S.
airlines."

"During the quarter, we dramatically increased revenue and Adjusted EBITDA* as
compared to pro forma** Q1 2013 results," Mr. Davis continued. "Supported by
our strong balance sheet, we remain well-positioned to continue growing both
organically and through strategic M&A opportunities."

Financial Results

The summary consolidated financial information for the three months ended
March 31, 2014 is not directly comparable to the financial information for the
three months ended March 31, 2013. Global Eagle Entertainment was formed
through the acquisition by Global Eagle Acquisition Corp. ("GEAC") of Row 44,
Inc. ("Row 44") and 86% of the shares of AIA in January 2013, which we refer
to as our business combination. Row 44 was deemed the accounting acquirer in
the business combination. As such, the presented financial information for the
three months ended March 31, 2013 includes the financial information and
activities of Row 44 for the period January 1, 2013 to March 31, 2013 (91
days) as well as the financial information and activities of GEE and AIA for
the period January 31, 2013 to March 31, 2013 (60 days). The business of Post
Modern Edit, LLC and related entities ("PMG") and the parent of IFE Services
Limited ("IFES") were acquired subsequent to March 31, 2013, and as such, are
not included in amounts presented for the three months ended March 31, 2013.

For the first quarter of 2014, revenue was $86.0 million, compared with $42.5
million in the first quarter of 2013. The loss from operations for the quarter
was $9.4 million, compared to a loss of $22.2 million in the first quarter of
2013. The net loss for the quarter was $26.3 million, compared to a net loss
of $27.0 million in the first quarter of 2013.

Capital expenditures for the first quarter of 2014 totaled approximately $2.0
million. The Company finished the first quarter of 2014 with approximately
$250.6 million in cash and $7.7 million in debt.

** Pro Forma Financial Information

The table below presents financial results for the three-months ended March
31, 2014 and 2013(1).For the three months ended March 31, 2013, the amounts
are presented on a pro forma basis reflecting the operating results of Global
Eagle as if the business combination had been consummated as of January 1,
2013; accordingly, this information does not correspond to the unaudited
condensed financial statements included in this earnings release, which were
prepared on a U.S. GAAP basis. The pro forma information for the quarterly
period ended March 31, 2013 includes financial information for the period
January 1, 2013 to March 31, 2013 for AIA(1) and Row 44 and January 1, 2013 to
January 31, 2013 (the date on which we completed the business combination) for
GEAC.The pro forma information for the quarterly period ended March 31,
2013 does not include any financial information for PMG and IFES, which were
acquired subsequent to March 31, 2013.

Revenue, Contribution Margin, and Adjusted EBITDA* Continue to Improve (1)
(In millions, except %)
(Unaudited)

                                            Pro Forma **       
                               Q1 '14        Q1 '13 ^  (2)      % Change
Revenue                                                        
Connectivity:                                                  
Equipment (3)                   $5.9         $9.0              -34%
Services (4)                    16.5         6.3               162%
Total Connectivity Revenue      22.4          15.3               46%
Content:                                                       
Licensing (5)                   52.3          34.5               52%
Services (6)                    11.3         5.8               95%
Total Content Revenue           63.6          40.3               58%
Total Revenue                   $86.0        $55.6              55%
Cost of Sales                                                  
Connectivity                    (19.0)       (15.2)            26%
Content                         (46.1)       (30.4)            52%
Total Cost of Sales             (65.1)       (45.6)            43%
Contribution Profit                                            
Connectivity                    3.4           0.1                N/A
Content                         17.5         9.9               77%
Total Contribution Profit       20.9          10.0              109%
Contribution Margin (%)                                        
Connectivity                    15%           1%                 
Content                         28%           25%                
Total Contribution Margin       24%           18%                
Adjusted EBITDA*                $5.1          $(0.5)             N/A

(1)Reflects 100% of AIA's results; GEE owned approximately 86% and 94% of
AIA's outstanding shares as of March 31, 2013 and 2014, respectively.
(2)Actual Contribution Profit for the Content segment for the period January
1, 2013 to January 31, 2013 is not available on a U.S. GAAP basis.
Accordingly, the Contribution Profit Percentage for the Content segment for
such period was estimated to be the same as for the period February 1, 2013 to
March 31, 2013. Also, the cost of sales for the content segment in the first
quarter of 2013 was adjusted to reflect the Company's current accounting
policies.
(3)Represents sales of satellite based connectivity equipment.
(4)Represents Wi-Fi, TV, VOD, shopping and travel-related revenue sold
through our Connectivity platform.
(5)Represents revenue principally generated through the sale or license of
media content, video and music programming, applications, and video games to
customers.
(6)Content services revenue includes various services generally billed on a
time and materials basis such as encoding and editing of media content.

Consolidated revenue for Q1 2014 was $86.0 million as compared to pro forma
revenue of $55.6 million in Q1 2013, an increase of $30.4 million or 55%.The
quarterly increase in revenue was driven by improvements of $23.3 million, or
58%, in the Content segment and $7.1 million, or 46%, in the Connectivity
segment. Adjusted EBITDA* in Q1 2014 was $5.1 million, compared to pro forma
Adjusted EBITDA* of ($0.5) million in Q1 2013.This improvement was driven by
strong increases in contribution profit in both the Content and Connectivity
segments.

Segment Results

The increase in Content segment revenue in Q1 2014 of $23.3 million as
compared to pro forma** Q1 2013 was principally due to the acquisitions of PMG
in July 2013 and IFES in October 2013. The improvement in Content contribution
margin from 25% in Q1 2013 to pro forma** 28% in Q1 2014 was largely due to a
higher mix of licensing customers with better margins in Q1 2014 as compared
to Q1 2013, and focused efforts on margin expansion.

The increase in Connectivity segment revenue in Q1 2014 of $7.1 million as
compared to pro forma** Q1 2013 was principally due to increased passenger
Wi-Fi usage and the inclusion of paid sponsorship of the "TV Flies Free"
offering on Southwest Airlines, offset by a seasonal reduction in aircraft
equipment installations.The quarter-over-quarter increase in Connectivity
service revenue, which outpaced the decline in Connectivity equipment revenue
for the same period, was largely responsible for the quarterly improvement in
Connectivity segment contribution margin from pro forma** 1% in Q1 2013 to 15%
in Q1 2014.The improvement was also due to the nature of the bandwidth and
licensing costs associated with providing service for "TV Flies Free", which
are largely fixed per aircraft, which resulted in the additional service
revenue from "TV Flies Free" being highly accretive to our operating results
in the period.

Recent Highlights

Key accomplishments since January 1, 2014 include:

  *Acquired 100% of AIA in Q2 2014 by purchasing the final 6.05% outstanding
    stake in AIA for approximately $15.0 million. The combination of AIA and
    our 2013 acquisitions of PMG and IFES positions Global Eagle as the clear
    leader in providing media and content services to the global airline
    industry.We expect significant synergies from the combination.
  *Selected by Indonesia's flag carrier, Garuda Indonesia, to provide
    In-Flight Entertainment ("IFE") content to its passengers.In addition to
    movies from studios in Hollywood, the Middle East, Europe and Asia, the
    content package will feature television programming, music, streaming
    radio, games, advertising services and original productions that include
    destination films, safety films and entertainment guides. Headquartered
    in Jakarta, Garuda Indonesia Group operates 139 aircraft and serves 44
    domestic and 20 international destinations.
  *Entered into a five-year agreement with an affiliate of Thaicom Public Co
    Ltd pursuant to which the parties will jointly collaborate on the
    marketing, sale and delivery of connectivity hardware and services for the
    Southeast Asian market.GEE will provide its expertise in connectivity
    solution hardware, network management and content delivery services, and
    Thaicom will provide its expertise in telecommunication connectivity
    services and solutions using its satellite network.As the initial airline
    partner of GEE and Thaicom, the parties expect to launch connectivity
    services on NOK Air's 737-800 aircraft in the near future.
  *Partnered with the Union of European Football Associations ("UEFA") to
    distribute UEFA Champions League and UEFA Europa League tournament matches
    on cruise ships on the premium satellite TV channel PrimeTelly, which
    along with channels Prime US and Engage, is delivered through GEE's Media
    Orbit Networks brand.UEFA Champions League and UEFA Europa League
    tournaments are among the most-watched sporting events in the world.GEE
    is committed to expanding our content offering with the addition of live
    events delivered to the connected cabin, whether in the air or at sea.
  *Began rolling-out WISE™ Wireless In-flight Services and Entertainment, a
    wireless IFE software platform allowing flying passengers to stream
    content on personal electronic devices. Designed to work with or without
    in-flight connectivity, WISE™ is a hardware agnostic solution selected by
    several renowned hardware partners as the backbone for their in-flight
    wireless streaming offerings. GEE completed its first aircraft delivery
    of WISE™ for service on an international airline, which will start
    offering wireless IFE shortly. GEE also delivered WISE™ to a hardware
    partner for another international airline scheduled to launch wireless IFE
    in Q2.
  *Increased Wi-Fi Internet usage on Southwest Airlines 400+ connected
    aircraft with gate-to-gate connectivity offering.With GEE connectivity
    available during all stages of flight, 25% of data used during Q1 was
    consumed on the ground.In addition, both average session length and the
    number of simultaneous users increased by 30%. This translates to
    increased WiFi usage on shorter flights and extended passenger engagement
    for advertising opportunities.
  *Continued international role out of connectivity services with
    installation of 21 systems on aircraft operating outside the U.S.We ended
    Q1 with a total of 547 aircraft installed and a backlog of 276 systems.
  *Continued to win new business from international clients across the
    content services sector, including flagship projects at Air France and
    Turkish Airlines for the design of their IFE GUI, and contract extensions
    at ANA and Brussels airlines.GEE also entered into agreement with Magzter
    to offer airlines an extensive selection of North American and
    International magazines from the world's leading magazine
    publishers.GEE's subsidiary, DTI, the market leading provider of digital
    reading publication software, will distribute the new content to airline
    customers worldwide via its eReader platform, which is compatible with
    seatback and wireless in-flight entertainment systems.
  *GEE remains on track to launch GEE's connectivity solution on Air China,
    China's flag carrier, with a trial in 2014. The trial will commence aboard
    a 777-200 aircraft and will enable Air China's passengers to access the
    Internet and stored content on approved handheld devices.
  *Authorized an increase to GEE's warrant repurchase program allowing GEE to
    pay up to an aggregate amount of $25 million to repurchase outstanding
    common stock purchase warrants, exclusive of the amounts paid for
    repurchases in 2013.Repurchases may be made by from time to time in any
    manner permitted by applicable law. There is no time limit for warrant
    repurchases, nor is there a minimum amount of warrants that may be
    repurchased, and the program may be suspended or discontinued at any time
    without prior notice.

Outlook

We expect continued growth through the remainder of 2014.Drivers of increased
revenue and EBITDA include growth of our content customer base, continued
installations of our connectivity systems, the full year impact of the
acquisitions of PMG and IFE Services made in 2013, and the realization of
integration synergies over the second half of the year.

Conference Call

Global Eagle Entertainment will hold a conference call to discuss its first
quarter 2014 results on Friday, May 9, 2014 at 10:00 a.m. EDT (7:00 a.m. PDT).
To access the teleconference, please dial 412-317-6789 ten minutes prior to
the scheduled start time. The teleconference will also be available via live
webcast on the investor relations portion of the Company's Web site located at
www.globaleagleent.com

If you cannot listen to the teleconference at its scheduled time, there will
be a replay available through Thursday, May 22, 2014. The replay can be
accessed by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (Int'l), passcode
10045518. The webcast will also be archived on the Company's Web site for 30
days.

About Global Eagle Entertainment

Global Eagle Entertainment Inc. is the leading full service platform offering
both content and connectivity for the worldwide airline industry. Through its
combined content, distribution and technology platforms, Global Eagle provides
airlines and the millions of travelers they serve with the industry's most
complete offering of in-flight video content, e-commerce and information
services. Through its Row 44 subsidiary, Global Eagle utilizes Ku-band
satellite technology to provide airline passengers with Internet access, live
television, shopping and travel-related information. Currently installed on
547 aircraft, Row 44 has the largest fleet of connected entertainment
platforms operating over land and sea globally. In addition, through its AIA
subsidiary, Global Eagle provides film and television content, games and
applications to more than 130 airlines worldwide. Global Eagle is
headquartered in greater Los Angeles, California and maintains offices and
support personnel around the world. Find out more at www.globaleagleent.com.

* About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and
presented in accordance with accounting principles generally accepted in the
United States of America ("GAAP"), we use Adjusted EBITDA, which is a non-GAAP
financial measure. The presentation of Adjusted EBITDA is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. For more
information on this non-GAAP financial measure, please see the tables
captioned "Reconciliations of Non-GAAP Measures to Unaudited Consolidated
Statements of Operations" included at the end of this release.

Adjusted EBITDA is the primary measure used by the Company's management and
board of directors to understand and evaluate its financial performance and
operating trends, including period to period comparisons, to prepare and
approve its annual budget and to develop short and long term operational
plans. Additionally, Adjusted EBITDA is the primary measure used by the
compensation committee of the Company's board of directors to establish the
funding targets for and fund its annual bonus pool for the Company's employees
and executives. We believe our presentation of Adjusted EBITDA is useful to
investors both because (1) it allows for greater transparency with respect to
key metrics used by management in its financial and operational
decision-making and (2) management frequently uses it in its discussions with
investors, commercial bankers, securities analysts and other users of its
financial statements.

We define Adjusted EBITDA as net income (loss) before income tax expense,
other income (expense), interest expense (income), depreciation and
amortization, stock-based compensation, acquisition and realignment costs, F/X
gain (loss) on intercompany loans and any gains or losses on certain asset
sales or dispositions. Acquisition and realignment costs include such items,
when applicable, as (a) non-cash GAAP purchase accounting adjustments for
certain deferred revenue and costs, (b) legal, accounting and other
professional fees directly attributable to acquisition activity, (c) employee
severance payments attributable to acquisition or corporate realignment
activities, (d) certain non-recurring expenses associated with the Company's
expansion into China that did not generate associated revenue in 2014, and (e)
expenditures related to the January 2013 business combination. Management does
not consider these costs to be indicative of the Company's core operating
results.

Cautionary Note Concerning Forward-Looking Statements

We make forward-looking statements in this earnings release within the meaning
of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements relate to expectations or forecasts for future events, including
without limitation our earnings, revenues, expenses or other future financial
or business performance or strategies, or the impact of legal or regulatory
matters on our business, results of operations or financial condition. These
statements may be preceded by, followed by or include the words "may,"
"might," "will," "will likely result," "should," "estimate," "plan,"
"project," "forecast," "intend," "expect," "anticipate," "believe," "seek,"
"continue," "target" or similar expressions. These forward-looking statements
are based on information available to us as of the date of this earnings
release, and involve substantial risks and uncertainties.

We make forward-looking statements in this earnings release and the documents
incorporated by reference herein within the meaning of the Securities
Litigation Reform Act of 1995. These forward-looking statements relate to
expectations or forecasts for future events, including without limitation our
earnings, revenues, expenses or other future financial or business performance
or strategies, or the impact of legal or regulatory matters on our business,
results of operations or financial condition. These statements may be preceded
by, followed by or include the words "may," "might," "will," "will likely
result," "should," "estimate," "plan," "project," "forecast," "intend,"
"expect," "anticipate," "believe," "seek," "continue," "target" or similar
expressions. These forward-looking statements are based on information
available to us as of the date of this earnings release and on our current
expectations, forecasts and assumptions, and involve substantial risks and
uncertainties. Actual results may vary materially from those expressed or
implied by the forward looking statements herein due to a variety of factors,
including: our ability to integrate our recently acquired businesses, the
ability of the combined business to grow, including through acquisitions which
we are able to successfully integrate, and the ability of our executive
officers to manage growth profitably; the ability of our executive officers to
recognize changing trends in the systems, services and business model
requirements of our current and potential future customers; the ability of our
customer Southwest Airlines to maintain a sponsor for its "TV Flies Free"
offering and our ability to replicate this model through other sponsorship
alliances; the ability of our content segment to provide unique content
curation and delivery services attractive to non-theatrical customers,
including the airlines; the outcome of any legal proceedings pending or that
may be instituted against us, Row 44, AIA, PMG or IFES; changes in laws or
regulations that apply to us or our industry; our ability to recognize and
timely implement future technologies in the content delivery space, including
wireless content delivery, and the satellite connectivity space, including
Ka-band system development and deployment; our ability to deliver end-to-end
network performance sufficient to meet increasing airline customer and
passenger demand; our ability to obtain and maintain international
authorizations to operate our connectivity service over the airspace of
foreign jurisdictions our customers utilize; our ability to expand our service
offerings and deliver on our service roadmap; our ability to timely and
cost-effectively identify and license television, audio and media content that
airlines and/or and media content that passengers will purchase; general
economic and technological circumstances in the satellite transponder market,
including access to transponder space in capacity limited regions and
successful launch of replacement transponder capacity where applicable; our
ability to obtain and maintain licenses for content used on legacy installed
in-flight entertainment systems and next generation in-flight entertainment
systems; the loss of, or failure to realize benefits from, agreements with our
airline partners; the loss of relationships with original equipment
manufacturers or dealers; unfavorable economic conditions in the airline
industry and economy as a whole; our ability to expand our domestic or
international operations, including our ability to grow our business with
current and potential future airline partners or successfully partner with
satellite service providers, including Hughes Network Systems; our reliance on
third-party satellite service providers and equipment and other suppliers,
including single source providers and suppliers; the effects of service
interruptions or delays, technology failures, material defects or errors in
our software or hardware, damage to our network resources, disruption of our
content delivery systems or geopolitical restrictions; the limited operating
history of our connectivity and in-flight television and media products; costs
associated with defending pending or future intellectual property infringement
actions and other litigation or claims; increases in our projected capital
expenditures due to, among other things, unexpected costs incurred in
connection with the roll out of our technology roadmap or our international
plan of expansion, including managing rapid changes in available competitive
technologies and research and development of such technologies; fluctuation in
our operating results; the demand for in-flight broadband Internet access
services and market acceptance for our products and services; and other risks
and uncertainties set forth in this earnings release and in our most recent
Annual Report on Form 10-K, as amended, and any subsequently filed Quarterly
Reports on Form 10-Q.We do not undertake any obligation to update
forward-looking statements as a result of as a result of new information,
future events or developments or otherwise.

Global Eagle Entertainment, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)

                                                      Three Months Ended
                                                       March 31,
                                                      2014        2013
Revenue                                                $85,968   $42,513
Operating expenses:                                               
Cost of sales                                          65,117     35,749
Sales and marketing                                    2,835      2,287
Product development                                    3,922      1,337
General and administrative                             17,067     24,059
Amortization of intangible assets                      6,419      1,233
Total operating expenses                               95,360     64,665
Loss from operations                                   (9,392)    (22,152)
Other income (expense), net:                                      
Interest income (expense), net                         (161)      (176)
Change in fair value of financial instruments          (15,538)   (4,615)
Other income (expense), net                            199        (44)
Loss before income taxes                               (24,892)   (26,987)
Income tax expense                                     1,257      34
Net loss                                               (26,149)   (27,021)
Net income (loss) attributable to non-controlling      (194)      39
interests
Net loss attributable to common stockholders           $(26,343) $(26,982)
                                                                 
Net loss per share – basic and diluted                 $(0.47)    $(0.61)
Weighted average shares – basic and diluted            55,914      44,014



Global Eagle Entertainment, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)

                                             March 31, 2014 December 31, 2013
                                             (Unaudited)    
Assets
Cash and cash equivalents                     $250,553     $258,796
Accounts receivable, net                      62,683         64,216
Content library, net                          7,669          6,563
Inventories                                   12,934         15,481
Prepaid and other current assets              20,554         14,187
Property, plant and equipment, net            21,192         20,797
Goodwill                                      52,345         52,345
Intangible assets                             129,742        136,414
Other non-current assets                      13,470         10,084
Total assets                                  $571,142     $578,883
Liabilities and Stockholders' Equity                        
Accounts payable and accrued liabilities      $93,994      $81,961
Deferred revenue                              17,246         16,998
Derivative warrant liabilities                86,960         71,570
Notes payable and accrued interest            7,702          10,801
Deferred tax liabilities                      24,572         26,378
Other liabilities                             8,017          14,991
Total liabilities                             238,491        222,699
                                                           
Stockholders' Equity:                                       
Common stock, treasury stock and additional   592,741        590,210
paid-in capital
Subscriptions receivable                      (484)         (478)
Accumulated deficit                           (270,286)     (243,943)
Accumulated OCI                               91            --
Total stockholders' equity                    322,062        345,789
Non-controlling interests                     10,589        10,395
Total Liabilities and Stockholders' Equity    $571,142     $578,883



Reconciliations of Non-GAAP Measures to Unaudited Consolidated Statements of
Operations
(In thousands)
(Unaudited)
                                                   
                               Three months ended   Three months ended
                                March 31, 2014       March 31, 2013
Adjusted EBITDA:                                    
Net loss attributable to common $(26,343)          $(26,982)
stockholders
Net income (loss) attributable  193                 (39)
to non-controlling interests
Income tax expense              1,257               34
Other income (expense) (1)      15,876              4,835
Depreciation and amortization   9,394               4,702
Stock-based compensation (2)    2,616               1,647
Acquisition and realignment     2,083               12,210
costs(3)
F/X gain (loss) on intercompany --                 1,378
loan (4)
Adjusted EBITDA                 $5,077             $(2,215)
Pro-forma Adjustments                               
January 2013 GEAC Pre-tax loss  --                 (22,100)
January 2013 AIA Pre-tax income --                 1,306
Add back:                       --                 
January 2013 GEAC Other income  --                 11,697
(expense)
January 2013 GEAC Business
Combination Fees and Expenses   --                 10,243
(5)
January 2013 AIA & GEAC         --                 66
Interest expense (income)
January 2013 AIA & GEAC         --                 471
Depreciation and amortization
Pro-forma Adjusted EBITDA       $5,077             $(532)

(1)Other income (expense) principally includes the change in fair value
of the Company's derivative financial instruments and certain
non-recurring expenses associated with the Company's expansion into China
that did not generate associated revenue in 2014.
(2) Included in stock-based compensation for the three months ended March
31, 2013 is approximately $1.1 million related to certain accrued tax
obligations that resulted from the January 2013 business
combination.During the three months ended September 30, 2013, the
Company extinguished and paid this liability through the repurchase and
retirement of its common stock from certain members of management, and as
a result the $1.1 million tax liability was reversed and excluded from
stock-based compensation in the third quarter ended September 30, 2013.
(3) Acquisition and realignment costs include such items, when
applicable, as (a) non-cash GAAP purchase accounting adjustments for
certain deferred revenue and costs, (b) legal, accounting and other
professional fees directly attributable to acquisition activity, (c)
employee severance payments attributable to acquisition or corporate
realignment activities, and (d) expenditures related to the January 2013
business combination. Management does not consider these costs to be
indicative of the Company's core operating results.
(4)F/X gain (loss) on intercompany loan includes the unrealized foreign
exchange gains and losses in the value of certain intercompany loans that
are included in the Company's operating results.
(5) Comprises formation expenses directly related to the Company's
business combination in 2013 that did not generate associated revenue in
Q1 of 2013.



Global Eagle Entertainment, Inc.
Unaudited Segment Revenue and Contribution Profit
(In thousands)

Segment revenue, expenses and contribution profit for the three month period ended
March 31, 2014 and 2013 derived from the Company's Connectivity and Content segments
were as follows:

            Three months ended March 31,
            2014                                2013
            Content   Connectivity Consolidated Content   Connectivity Consolidated
Revenue:                                                           
Licensing    $52,331 —          $52,331    $23,304 —          $23,304
Service      11,061   16,494      27,555      3,872    6,294       10,166
Equipment    198      5,884       6,082       —       9,043       9,043
Total        63,590   22,378      85,968      27,176   15,337      42,513
Revenue
Operating                                                          
Expenses:
Cost of      46,144   18,973      65,117      20,503   15,246      35,749
Sales
Contribution 17,446   3,405       20,851      6,673    91          6,764
Profit
Other Operating                    30,243                           28,916
Expenses
Loss from                         $(9,392)                        $(22,152)
Operations

CONTACT: For Investors
        
         Dave Davis
         Chief Financial Officer
         Global Eagle Entertainment
         (818) 706-3111
         ddavis@globaleagleent.com
        
         -or-
        
         Chris Plunkett or Brad Edwards
         Brainerd Communicators, Inc.
         (212) 986-6667
         plunkett@braincomm.com
         edwards@braincomm.com
        
         For Press
        
         Karin Pellmann
         Global Eagle Entertainment Inc.
         kpellmann@globaleagleent.com
         646-515-6933
 
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