Enterprise Business Grew Year-on-year, But Consumer Business Dragged on Group Profitability in 1H18

• TeleChoice’s 1H18 revenue and PATMI fell by 8.5% and 39.0% respectively to S$241.2m and S$1.28m.
• Both the ICT and Network Engineering segments reported higher profit before tax in 1H18. However, profit before tax still fell by 30.4% to S$2.0m due to S$1.1m less contribution from the Personal Communication Solutions Services (PCS) segment whose profit before tax fell to S$2.2m in 1H18.

Taking Steps to Deepen Capabilities and Widen Market Reach

TeleChoice’s Personal Communication Solutions Services (PCS) segment was affected by the loss of the StarHub Logistics Contract which expired on 30 June 2017.

In 2Q18, the absence of new handset launches also affected PCS’s revenue. TeleChoice has since strengthened its range of services in Singapore even as network operators move to contain costs. These services include the provision of additional StarHub services for handset home delivery and set top boxes.

Source: Tayrona Financial Research - 27 Aug 2018