SATS’ Q4 income dips 1.7% to $50.7m

Due to weak share results from associates, JVs.

SATS’ profit after tax and minority interests (PATMI) slipped 1.7% YoY to $50.7m in Q4, on back of a 10.7% drop in contributions from associates and joint ventures (JVs).

According to a report by OCBC, SATS’ Q4 earnings were also slammed by a $2.1m impairment of its PPE on fair value adjustments of certain non-core assets in Japan.

Meanwhile, core PATMI jumped 12.4% to $220.2m in FY16.

Revenue for the quarter slipped 1.8% to $417.6, due mainly to the transfer of food distribution business to its JV. For FY16, revenue dipped 31% to $1.7b on back of food solutions where revenue tumbled 8% on transfer of food distribution revenue to JV, and weakening of JPY against SGD. This was partly offset, though, by raised gateway services revenue.

For Q4, operating costs edged back 3.3% to $367.9m. For the full fiscal year, operating costs dropped at a faster pace than revenue thanks to tight cost management, productivity drive, and lower energy costs.

As a result, operating margin improved from 10.2% in FY15 to 12.5% in FY16. 

Photo: Sorbis/Shutterstock.com