SATS net profit dips slightly in fourth quarter

Airport terminal services operator SATS yesterday reported net profit fell 1.2 per cent in its fiscal fourth quarter from the corresponding period in the previous year to S$50.1 million despite revenue rising 7.8 per cent to S$433.3 million.

SATS said turnover benefited from growth in passenger volumes and flights, with operations at its Tokyo Flight Kitchen unit recovering from the triple disasters in Japan.

But net profit fell because it had benefited in the previous period from a contribution from Daniels Group, whose operations had since been discontinued. Excluding that item, net profit rose 11 per cent, it said. For the full fiscal year ended March 31, net profit fell 12 per cent to S$170.9 million even as revenue grew 24.1 per cent to S$1.68 billion.

Looking ahead, SATS said passenger traffic at Changi Airport would likely increase on the back of growing regional traffic as the Singapore Tourism Board has projected moderate growth in visitor arrivals of between 13.5 million and 14.5 million this year.

However, SATS warned that weakness in cargo demand would likely continue, especially for the next two quarters.

It added that a stronger Singapore dollar might affect the performance of some overseas associates and joint ventures.

SATS shares rose 2.4 per cent to S$2.61 yesterday after the results announcement.

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