Iggy's Journal: SATS Revenue Rose 9% but Operating Profit Fell 7.6%. What Lifted Profit to Shareholders?

The Investing Iguana

Iggy's Journal: SATS Revenue Rose 9% but Operating Profit Fell 7.6%. What Lifted Profit to Shareholders?

Thu 12 Nov 2026 | Midday

The Numbers

SATS grew revenue by 9%, but EBIT fell 7.6% because costs before depreciation rose 11.7%. Profit to shareholders still increased. Gateway's operating profit fell 11.1% even as its revenue rose 10%. Half-year operating cash flow before lease payments fell from S$356.8 million to S$265 million. The first-half EBITDA and EBIT margins were 17.4% and 8.2%, against 2029 targets of above 20% and above 10%.

My Personal Take

The line that rose is not always the line that did the work. If revenue rose 9% and operating profit fell 7.6%, what lifted profit to shareholders? That is the question I started with, and it leaves me with one more. Is the growth coming from operations, or from items that will not repeat? I am not putting a verdict on the shares in this entry. The episode follows the profit line back to its source.

📺 YouTube: https://youtu.be/_VvhJ4dtRE

Cheers,

Iggy 🦖

Not financial advice. Iggy's Forensic Compliance Standards apply.

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Comments

puffyxx
11-12 17:44
puffyxx
That drop from S$356.8m to S$265m is the part bugging me. If cash conversion is weaker, the profit lift needs a very hard look

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What Lifted Profit to Shareholders?","html":"<html><head></head><body><p><strong>Iggy's Journal: SATS Revenue Rose 9% but Operating Profit Fell 7.6%. What Lifted Profit to Shareholders?</strong></p>\n<p></p>\n<p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/bd9e37d5cc610d39976fb1f2f8a5a869\" tg-width=\"896\" tg-height=\"1200\"></p>\n<p>Thu 12 Nov 2026 | Midday</p>\n<p></p>\n<p>The Numbers</p>\n<p>SATS grew revenue by 9%, but EBIT fell 7.6% because costs before depreciation rose 11.7%. Profit to shareholders still increased. Gateway's operating profit fell 11.1% even as its revenue rose 10%. Half-year operating cash flow before lease payments fell from S$356.8 million to S$265 million. The first-half EBITDA and EBIT margins were 17.4% and 8.2%, against 2029 targets of above 20% and above 10%.</p>\n<p></p>\n<p>My Personal Take</p>\n<p>The line that rose is not always the line that did the work. If revenue rose 9% and operating profit fell 7.6%, what lifted profit to shareholders? That is the question I started with, and it leaves me with one more. Is the growth coming from operations, or from items that will not repeat? I am not putting a verdict on the shares in this entry. The episode follows the profit line back to its source.</p>\n<p></p>\n<p>📺 YouTube: https://youtu.be/_VvhJ4dtRE</p>\n<p></p>\n<p>Cheers,</p>\n<p>Iggy 🦖</p>\n<p></p>\n<p>Not financial advice. Iggy's Forensic Compliance Standards apply.</p></body></html>","htmlText":"<html><head></head><body><p><strong>Iggy's Journal: SATS Revenue Rose 9% but Operating Profit Fell 7.6%. What Lifted Profit to Shareholders?</strong></p>\n<p></p>\n<p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/bd9e37d5cc610d39976fb1f2f8a5a869\" tg-width=\"896\" tg-height=\"1200\"></p>\n<p>Thu 12 Nov 2026 | Midday</p>\n<p></p>\n<p>The Numbers</p>\n<p>SATS grew revenue by 9%, but EBIT fell 7.6% because costs before depreciation rose 11.7%. Profit to shareholders still increased. Gateway's operating profit fell 11.1% even as its revenue rose 10%. Half-year operating cash flow before lease payments fell from S$356.8 million to S$265 million. The first-half EBITDA and EBIT margins were 17.4% and 8.2%, against 2029 targets of above 20% and above 10%.</p>\n<p></p>\n<p>My Personal Take</p>\n<p>The line that rose is not always the line that did the work. If revenue rose 9% and operating profit fell 7.6%, what lifted profit to shareholders? That is the question I started with, and it leaves me with one more. Is the growth coming from operations, or from items that will not repeat? I am not putting a verdict on the shares in this entry. The episode follows the profit line back to its source.</p>\n<p></p>\n<p>📺 YouTube: https://youtu.be/_VvhJ4dtRE</p>\n<p></p>\n<p>Cheers,</p>\n<p>Iggy 🦖</p>\n<p></p>\n<p>Not financial advice. Iggy's Forensic Compliance Standards apply.</p></body></html>","text":"Iggy's Journal: SATS Revenue Rose 9% but Operating Profit Fell 7.6%. What Lifted Profit to Shareholders? Thu 12 Nov 2026 | Midday The Numbers SATS grew revenue by 9%, but EBIT fell 7.6% because costs before depreciation rose 11.7%. Profit to shareholders still increased. Gateway's operating profit fell 11.1% even as its revenue rose 10%. Half-year operating cash flow before lease payments fell from S$356.8 million to S$265 million. The first-half EBITDA and EBIT margins were 17.4% and 8.2%, against 2029 targets of above 20% and above 10%. My Personal Take The line that rose is not always the line that did the work. If revenue rose 9% and operating profit fell 7.6%, what lifted profit to shareholders? That is the question I started with, and it leaves me with one more. Is the growth coming from operations, or from items that will not repeat? I am not putting a verdict on the shares in this entry. The episode follows the profit line back to its source. 📺 YouTube: https://youtu.be/_VvhJ4dtRE Cheers, Iggy 🦖 Not financial advice. Iggy's Forensic Compliance Standards apply.","highlighted":1,"essential":1,"paper":2,"likeSize":10,"commentSize":1,"repostSize":1,"favoriteSize":0,"link":"https://ttm.financial/post/628491110585024","repostId":0,"isVote":1,"tweetType":1,"viewCount":355,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":true,"length":906,"optionInvolvedFlag":false,"subscribersOnly":false,"subscribersOnlyAccessible":false,"xxTargetLangEnum":"ORIG"},"commentList":[{"id":628546758161112,"commentId":"628546758161112","gmtCreate":1794476645867,"gmtModify":1794485081061,"authorId":9000000000000374,"author":{"id":9000000000000374,"idStr":"9000000000000374","authorId":9000000000000374,"name":"puffyxx","avatar":"https://static.tigerbbs.com/46d30a827da942c1b0307f51e832534e","vip":8,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[]},"repliedAuthorId":0,"objectId":628491110585024,"objectIdStr":"628491110585024","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"That drop from S$356.8m to S$265m is the part bugging me. If cash conversion is weaker, the profit lift needs a very hard look","text":"That drop from S$356.8m to S$265m is the part bugging me. If cash conversion is weaker, the profit lift needs a very hard look","html":"That drop from S$356.8m to S$265m is the part bugging me. If cash conversion is weaker, the profit lift needs a very hard look","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0,"disclaimerType":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/628491110585024"}