SATS' profits dipped 4.6% to $62.1m in Q3

The 2.6% growth in the gateway services segment offset the 2.5% decline in food solutions.

SATS Limited’s (SATS) core profit dived 4.6% YoY to $62.1m in Q3.

According to OCBC Investment Research, revenue was flat YoY at $439.8m as the 2.5% decline in Food Solutions was offset by the 2.6% growth in Gateway Services. This is despite the breaking down of SATS HK (SHK) in July 2017.

Q3 operating expenses also came in flat YoY at $374.1m as the impact of SHK's breaking down was offset by higher underlying operating expenses including higher fuel costs and lower grants.

The share of after-tax profits from associates and joint ventures (JV) rose 7.9% YoY to $13.7m driven by food solutions associates and JVs.

For 9M2018, revenue fell 0.2% YoY to $1.3b, but underlying revenue would have increased 1.3% if not for the deconsolidation of SHK.

Operating expenses rose 0.2% to $1.12b on higher licence fees, depreciation and amortization charges, and other costs.

The share of after-tax profits from associates and JVs jumped 29.7% YoY to $47.2m. Consequently, core profits grew 1% YoY to $184.6m.