SINGAPORE (Oct 30): S i2i, the telecom and IT service provider formerly known as Spice i2i, saw 3Q ended Sept earnings decline more than fourfold to $114,000 from $464,000 in 3Q16 on higher overheads and lower other operating income.
Turnover for the quarter grew 14% to $90 million from $78.9 million a year ago as distribution of operator products and services in Indonesia continued to grow during 3Q17, together with revenue from ICT distribution and managed services.
The topline growth was however offset by an increase in overheads in the form of purchases and changes in inventories and direct service fees incurred. This was due to an increase in operator-driven manpower requirement/planning and related costs in operator products & services, as well as an enhanced focus on the group’s services-led business.
Other operating income notably fell 77.2% over the quarter to $0.2 million from $0.9 million in the previous year, due to lower rentals from certain properties, management support services fees, government subsidies and the write back of certain accruals/liabilities which were no longer required.
As at end Sept, cash net of borrowings was $20.7 million against $29.3 million in end 2016.
S i2i says it has continued its focus on operating efficiencies and management of working capital in terms of inventories, trade debtors, trade creditors and loans and borrowings in accordance with its business requirements.
Noting intense competition in the industry where all operators have been creating innovative products and competitive pricing, the group says it is now planning to embark on further enhancing its alliance with large MNC players, and also to explore innovative ways of managing cash flow and vendor management to optimize working capital and cash flow.
It adds that it continues to work on a time-bound plan to cut down all loss-making businesses, hold and grow profitable businesses, move from Information to Innovation, and remove itself from the SGX Watch list.
Shares in S i2i closed 5 cents lower at $2.78 on Monday.
