Lower expenditure helps SATS post stronger profit

Singapore

GROUNDHANDLER SATS has reported a net profit of S$60.6 million for the third quarter of the 2016 financial year, up 12.8 per cent from S$53.7 million a year ago, as a drop in expenditure gave the bottom line a boost.

This is despite revenue falling 2.2 per cent to S$441 million from S$450.7 million due to the transfer of its food distribution business to joint-venture company SATS BRF Food (SBRF) last June and the weakening of the Japanese yen.

As a result, revenue from its food solutions business declined 7.1 per cent to S$251 million. But gateway services revenue increased 5.3 per cent to S$188.9 million, thanks in part to contributions from budget carrier Jetstar Asia. Jetstar had previously defected to new market entrant ASIG, but reappointed SA…