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SATS 1Q earnings fall 11% to $57.3 mil on absence of one-off gain

Jude Chan
Jude Chan • 2 min read
SATS 1Q earnings fall 11% to $57.3 mil on absence of one-off gain
SINGAPORE (July 21): SATS, the provider of gateway services and food solutions, saw earnings fall 10.6% to $57.3 million for the first quarter ended June, from $64.1 million a year ago.
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SINGAPORE (July 21): SATS, the provider of gateway services and food solutions, saw earnings fall 10.6% to $57.3 million for the first quarter ended June, from $64.1 million a year ago.

This was mainly due to the absence of one-off gains registered a year ago.

Excluding one-off items, including the gain of $9.3 million in 1Q last year from the disposal of assets held for sale, SATS’ underlying net profit increased by 3.2%.

Group revenue held steady in 1Q, increasing marginally by 0.5% to $426.5 million.

This was largely attributable to a 5.1% increase in gateway services’ revenue to $193.1 million, partially offset by a 2.9% decline in revenue from food solutions to $233.1 million.

Operating profit for 1Q fell 1.8% to $53.5 million.

Share of after-tax profits from associates and joint ventures improved by 27% to $15.5 million on higher contributions.

Cash and cash equivalents stood at $548.8 million as at June 30, 2017.

Looking ahead, SATS says in a filing to SGX on Friday that pricing pressure on the group is expected to continue, with “no indication that low yields across the airline industry will improve in the near future.”

The group adds that it intends to continue to increase the use of technology, as well as make further investments in capital and new business opportunities in additional locations in the coming year to prepare for the future.

Shares of SATS closed 5 cents higher at $5.08 on Friday.

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