A tax item that did not repeat helped lift profit to shareholders, while operating margins weakened.
Revenue growth can look reassuring until you see which line did the work. SATS reported 9% revenue growth, but EBIT fell 7.6% as costs rose faster than sales. Profit to shareholders still rose, helped by a $10 million tax provision that did not repeat in the prior-year quarter. I walk through the company’s own business-update slides, including Gateway margins, Food performance, working-capital outflows, and the 2029 margin targets.
Key takeaways:
Revenue rose 9% to $1.7 billion, while EBIT fell 7.6%.
EBITDA margin fell from 19.6% to 17.6% year on year.
Gateway revenue rose 10%, but its operating profit fell 11.1%.
PATMI rose from $78.9 million to $81.1 million, despite weaker operating profit.
Half-year operating cash flow before lease payments fell from $356.8 million to $265 million.
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