SATS (S58) H2 2024 earnings summary

Executive summary

• FY24 revenue nearly tripled to $5,149.6M, driven by WFS consolidation and continued travel recovery; EBIT turned positive at $244.2M and PATMI returned to profit at $56.4M.

• EBITDA including share of associates and joint ventures (SOAJV) rose to $890.6M, with margin improving to 17.3% from 9.9% in FY23.

• Integration priorities include capturing network synergies, growing free cash flow, deleveraging and expanding Gateway and Food Solutions businesses.

Financial highlights

• Revenue was $5,149.6M vs. $1,758.3M; EBIT was $244.2M vs. a $48.0M loss; PATMI was $56.4M vs. a $26.5M loss.

• FY24 adjusted Core PATMI was $78.5M, excluding one-off legacy investment impairments and integration and restructuring expenses.

• 4Q revenue was $1,337.7M, down 1.2% QoQ; EBIT rose 6.5% to $88.8M and PATMI rose 4.1% to $32.7M.

• 4Q adjusted Core PATMI was $47.3M, excluding a one-off legacy investment impairment and restructuring expenses.

• Operating cash flow reached $512.1M vs. $79.6M; closing cash was $659.0M vs. $374.4M, while FY24 free cash flow after leases was negative $39.8M.

Outlook and guidance

• FY25 financial goals: repay ~ $200M of borrowings, invest $300M in capex and resume dividends with 1.5 cents per share, payable in Aug 2024.

• Aspirational goals include revenue above $8.0B by 2028 and ROE of ~15%.

• Global air passenger traffic is projected to recover to 2019 levels by end-2024; global air cargo traffic is forecast to grow 4.5% in 2024.

• Financial focus remains debt reduction, cash optimisation, reinvestment for sustainable growth and shareholder returns.