Monday, May 30, 2022

Surprised by SATS FY22 Result

I must admit - I am surprised by SATS FY2022 result:

- Revenue grew 21.3% to S$1,176.8m
- OpEx grew even more (24.4%) to S$1,219.4m
- Core PATMI is a loss of S$8.5m

Thanks to govt relief and its associates' profits, the company was able to eke out a 1.8 cents EPS.

Figure is way below Street concensus. Given that SATS stock price has been soaring recently, I will be watching to see if there is a selldown tomorrow.

Going to eat my dinner first before I start digesting the company's earnings report.


Addendum:
Okay, having gone through the earnings report, it seems SATS is ramping up operations to prep for the anticipated increase in flights. Staff costs alone went up 44% YoY while raw material costs went up 15.3% YoY.

Granted, the post-pandemic reopening has encouraged more visitor arrivals in Singapore. April saw a spike to 294.3k visitors. [data] The forgoing of FY22 dividend is a bummer. Hopefully, all these front-loading of costs will translate to better earnings for SATS in the next quarter.




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