Sats has reported revenue of $804.5 million for 1HFY2023 ended Sept 30, up 41.33% y-o-y, led by the resumption of travel demand and higher volume of cargo handled, as well as consolidation of revenue from a subsidiary.
However, it incurred a loss of $32.5 million for the same period, versus earnings of $13.2 million, a quarter that benefitted from government grants.
The company plans to continue to withhold dividend payments for now.
Kerry Mok, Sats' president and CEO calls the continuing rebound in travel demand a huge positive for the company's business and its customers, the airlines.
"We are ready to meet the higher passenger numbers and deliver best-in-class services," he says.
"Changi Airport being our home market will remain our core focus as well as the launch pad for our growing global network, strategy and capabilities," adds Mok.
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Sats on Sept 28 announced the acquisition of WFS, to become the leading global air cargo handler. It is now at an "advanced stage" of finalising its funding plan, with the deal likely to cost $1.8 billion. Out of which, Sats shareholders will be tapped for up to $800 million via a proposed rights issue.
"Given current market conditions, the company believes that this funding mix is optimal. Sats will continue to assess the merit of issuing hybrid securities to strategic investors and/or long-term financial investors, but this funding option shall only be considered and sequenced if it is favourable and adds long-term strategic value to the business and stakeholders.
The rights issue is targeted to be launched after an EGM this coming January. Further details of the funding plan will be announced prior to the EGM.
Sats shares closed Nov 9 at $2.72, up 1.49%.
