In line with the recovery in air travel, SATS’ revenue for its 1QFY2023 ended March has increased by 36.2% y-o-y to $375.5 million.
However, higher costs incurred to ramp up capacity has led to an operating loss of $34.3 million for the quarter, versus operating profit of $3.5 million in the year earlier quarter.
The company did not enjoy the same level of government subsidy.
As such, the company recorded a loss of $22.5 million, versus earnings of $6.4 million.
The company expects the recovery trajectory to continue and accelerate in the second half of this year, but warns that inflation will remain a challenge.
“SATS remains focused on capitalising on growth opportunities to broaden our revenue streams and replicate our core competencies and capabilities across key markets overseas,” says president and CEO Kerry Mok.
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“We will continue to drive operational excellence, efficiency and productivity across the value chain, to fuel sustainable business growth as well as to mitigate inflationary pressures,” he adds.
SATS closed July 22 at $3.99, down 0.75% for the day up 2.57% year to date.
