SINGAPORE (Feb 13): Airport gateway services and food solutions provider SATS saw its earnings rise 2.3% to $66.6 million for the 3Q ended December, from $65.1 million a year ago.
This was mainly due to a $4.5 million write-back of earn-out consideration recorded during the quarter. The write-back is an adjustment for the earn-out targets not met for the acquisition of additional equity interest in MacroAsia Catering Services Inc.
Group revenue slipped marginally by 0.2% to $439.8 million in 3Q17/18, from $440.9 million a year ago.
Revenue from its Food Solutions segment fell 2.5% to $240.4 million, while Gateway Services’ revenue rose 2.6% to $199 million despite the deconsolidation of SATS HK (SHK), which was divested in July 2017.
As at end December, cash and cash equivalents stood at $426.6 million.
Looking ahead, SATS says Changi Airport’s growth in passenger and cargo traffic will present opportunities for the company to strengthen its operations in Singapore with greater efficiency and innovative products and services.
Meanwhile, the group adds that it will continue to broaden and deepen its presence in overseas markets to boost overseas contributions to its business and draw on scale efficiencies.
Shares of SATS closed 5 cents lower at $5.25 on Tuesday.