SINGAPORE (Aug 14): TeleChoice International, the regional diversified provider of info-communications products and services, posted earnings of $1.7 million in 2Q17 and $2.1 million in 1H17, a 236.4% and 23.1% increase respectively from a year ago.
Group revenue in 2Q17 climbed 20.5% to $150.2 million while revenue in 1H17 also improved, rising by 2.0% to $263.6 million from $258.5 million.
The stronger revenue in 2Q17 was led by the sales of the Samsung S8 and S8 Edge by PCS division, higher equipment sales by ICT division and higher revenue from Engineering division’s Indonesia and Philippine operations.
In 1H17, revenue from PCS and Engineering divisions improved while ICT division’s revenue fell on lower enterprise solutions sales and lower wholesale voice revenue.
Gross margin weakened marginally by 0.6 ppt to 6.1% in 2Q17 on account of lower margins registered across all divisions while in 1H17, the 0.4 ppt drop in gross margin to 6.3% was attributed to PCS and Engineering divisions.
Profit before tax in 2Q17 more than doubled to $2.2 million on account of higher revenue, higher gross profit and lower operating expenses. Profit before tax in 1H17, at $2.9 million, was marginally lower by 1.9%, impacted by the share of loss of associate.
Otherwise, there was improvement in PBT registered by ICT division. The share of loss of associate was attributed to a one-off expense of amortisation of the intangible assets identified on acquisition of the associate.
As at end June, the group’s balance sheet remained strong with a net asset value per share of 15.25 cents and cash and cash equivalents of $34.7 million.
Shares in TeleChoice closed at 25 cents on Monday.
