APT Satellite (1045) H2 2024 earnings summary

Executive summary

• Revenue declined 5.9% year-over-year to HK$785 million for 2024, mainly due to lower satellite transponder capacity income.

• Profit attributable to equity shareholders fell 13.6% to HK$205 million; basic EPS was 22.10 HK cents.

• Final dividend of HK6.5 cents per share declared, significantly lower than last year's HK14.5 cents.

• The Group maintained stable operations, a healthy financial position, and continued investment in satellite and ground facilities.

Financial highlights

• Gross profit dropped 20.1% year-over-year to HK$284 million; EBITDA decreased to HK$602 million with margin at 77%.

• Total assets at year-end were HK$6,966 million; total liabilities at HK$877 million.

• Cash and bank balances increased 14% to HK$2.45 billion; free cash increased to HK$170 million.

• Net assets per share stood at HK$6.56; liquidity ratio improved to 12.27 times.

• Interest income rose 23.7% to HK$108.8 million.

Outlook and guidance

• Market for satellite transponder leasing remains oversupplied and highly competitive, with price pressure and payment risks from customers.

• Focus remains on expanding high-throughput satellite services and integrated solutions, especially in Asia Pacific and overseas markets.

• High-throughput satellites APSTAR-6D and APSTAR-6E expected to drive future growth.