APT Satellite (1045) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 2024 was HK$391.8 million, down 6.64% year-over-year, mainly due to lower satellite transponder capacity income.

• Profit attributable to shareholders declined 13.72% to HK$101.7 million, with basic and diluted EPS at HK10.95 cents.

• Interim dividend declared at HK4.50 cents per share, compared to HK5.00 cents last year.

• All in-orbit satellites and ground facilities operated reliably, with expanded service capabilities in Asia Pacific.

Financial highlights

• Gross profit decreased 21.89% year-over-year to HK$146.7 million.

• EBITDA for the period was HK$303.1 million, with margin down to 77.4%.

• Net cash inflow of HK$92.9 million, reversing a net outflow in the prior year.

• Total cash and bank balances stood at HK$2.13 billion.

• Net assets per share was HK$6.49; liquidity ratio improved to 10.14 times.

Outlook and guidance

• Market conditions for satellite transponder leasing remain challenging due to oversupply, price pressure, and increased competition from LEO operators.

• The group plans to expand into new business areas, invest in new satellite projects, and enhance ground facilities to maintain competitiveness.

• Enhanced HTS capacity utilization in Southeast Asia and further expansion in Asia Pacific with new satellite launches.