Sats taps foreign JVs, partnerships for growth

JOINT ventures (JVs) and associates proved a valuable growth driver for groundhandler Sats in its recently reported financial quarter, and this trend will likely continue.

For the second quarter ended Sept 30, Sats posted a 16.2 per cent jump in net profit to S$72.2 million, thanks to higher contributions from share of results of associates and joint ventures, as well as gains on disposal of assets. This was despite revenue dipping 0.8 per cent to S$434.8 million on the back of lower revenue from its food solutions business.

The market reacted positively, with Sats' shares climbing above the S$5 threshold after its results were released. Prior to that, its share price had been languishing under S$5 since July 24.