Sats slides 13.6% as investors dump shares on profit-margin squeeze

[SINGAPORE] Shares of Sats on Thursday (Aug 20) dropped 13.6 per cent in the wake of the group releasing its first-quarter results the night before.

The counter opened 7.3 per cent or S$0.35 lower at S$4.42. At the close of trading, the drop had deepened to S$0.65, leaving the counter at S$4.12. Nearly 34 million shares changed hands.

Sats reported a S$75.1 million net profit for Q1, up 6 per cent from S$70.9 million in the same year-ago period, on the back of partial support from lower interest expenses.

But this was a lower year-on-year earnings growth, considering that the group’s net profit was up 9.1 per cent from S$65 million in Q1 FY2025.

Its operating profit margin for Q1 was 8 per cent, as Middle East-related disruptions to cargo trade flows, the tempo of flight activity and inflationary pressure weighed on efficiencies and margins.

The gateway services and food solutions provider’s share of earnings from associates and joint ventures fell 18.9 per cent year on year to S$26.8 million, it said in a statement on Wednesday.

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Sats Q1 net profit up 6% at S$75.1 million on cargo growth

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This was on the back of lower business volumes driven by inflationary pressure on certain carriers and non-recurring provisions.