Higher revenue, lower spending and gains from a property disposal boosted first-quarter earnings at Sats.
Net profit at the ground-handling firm jumped 29.2 per cent to $64.1 million in the three months to June 30, compared with the same period last year. The improved performance came as revenue rose 1.8 per cent to $424.2 million while spending dipped 0.9 per cent to $369.7 million, mainly due to cheaper raw materials, rents and utilities expenses.
Other costs also decreased, mainly due to cheaper fuel and distribution charges, but manpower expenses increased by $13.7 million to support the growth in business volume, especially in Japan.
Overall, operating profit for the quarter improved 23.9 per cent to $54.5 million.
Earnings per share rose from 4.5 cents last year to 5.8 cents, while net asset value per share inched up to $1.40, compared with $1.34 as at March 31.
President and chief executive Alex Hungate said yesterday that Sats will continue to focus on improving productivity by harnessing technology."This will position us well to weather the global economic and political uncertainties as well as intense competition," he added, noting that while airline load factors are improving, yields remain under pressure. The firm will also explore new growth areas.
AT A GLANCE
$424.2 million (+1.8%)
$64.1 million (+29.2%)
Mr Hungate noted that the continued expansion of the middle class in Asia will create new opportunities for Sats.
The firm controls about 80 per cent of Changi Airport's ground-handling market while rival Dnata has the remaining 20 per cent.
Including its Singapore operations, the firm has a presence at 45 airports and 12 countries across Asia and the Middle East.