SATS sees challenges ahead in Q1 report
Revenue increased slightly and net profits decreased slightly for SATS in the first quarter of its fiscal year, which ended June 30.
In unaudited results released June 21, the Singapore company recorded SGD$426.5 million (US$300.5 million) in revenue, a 0.5% increase from the previous year. SATS announced a net profit of SGD53.5 million (US$37.7 million) a drop of 1.8%. The company’s underlying net profit (which refers to net profit attributable to owners of the company, excluding one-off items) increased 3.2% to SGD57.3 million (US$40.42 million).
In the outlook for the rest of the fiscal year, SATS said there is no indicated that airline yields will improve, which will continue to place pricing pressure on the company by its customers. However, air travel and e-commerce growth and demand for food service should stay much the same. The company will remain on the hunt for investments and new business opportunities in the year ahead.
“We will also increase the use of technology to improve productivity, gain greater scale economies and link our regional operations to serve our customers better,” said SATS.
A story on SATS’ technology initiatives can be found in the Asia electronic issue of PAX International.