Sats Q1 profits up 14.5% to $49.6 million

Changi Airport ground handling firm Sats reported a 14.5 per cent year-on-year jump in profits for the quarter ended June 30.
Changi Airport ground handling firm Sats reported a 14.5 per cent year-on-year jump in profits for the quarter ended June 30.PHOTO: ST FILE

SINGAPORE - Changi Airport's biggest ground handling firm, Sats, has reported profits of S$49.6 million - a 14.5 per cent year-on-year jump - in the three months ended June 30.

This was despite a 4.2 per cent drop in group revenue to S$416.9 million, the firm said on Thursday.

Operating expenditure declined 5.7 per cent year-on-year to S$372.9 million, mainly on the back of cheaper raw materials and lower staff costs.

Overall, operating profits for the quarter improved 10.8 per cent to S$44 million.

Looking ahead, Sats said that despite slower economic growth and rising manpower costs, the structural growth prospects of Asia remain strong with rapid urbanisation and growth of the middle class.

The firm reported earnings per share of 4.5 cents from 3.9 cents a year ago, while net asset value per share inched up slightly to S$1.34 compared to S$1.30 as at March 31.

karam@sph.com.sg