INCOME STATEMENT FOR THE 3RD QUARTER AND 9 MONTHS ENDED 30 SEPTEMBER 2018
STATEMENT OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER AND 9 MONTHS ENDED 30 SEPTEMBER 2018
Review of Group Performance
PCS - Higher revenue in 3Q2018 was due to higher equipment sales. Against 9M2017, there were lower prepaid
and fulfillment revenue and lower channel sales in 9M2018.
ICT - Revenue decreased in 3Q2018 was due to lower software revenue and the sale of the enterprise network
products distribution business in 3Q2018. The lower revenue in 9M2018 was mainly attributed to the sale of the
enterprise network products distribution business.
Engineering - Revenue increased in 3Q2018 was due to operations from all countries except for the Malaysia
operations. In 9M2018, the Indonesian operations reported lower revenue which was partially mitigated by
higher revenue from the Philippines and Singapore operations.
PCS - PBT decreased in 3Q2018 and 9M2018 were due to the Singapore operations. The lower PBT from
Singapore operations was due to the lower revenue and lower gross margin. In addition, the StarHub
Logistics Contract was not renewed upon its expiry on 30 June 2017.
ICT - Higher losses in 3Q2018 and 9M2018 were due to lower gross profit. In 3Q2018, there were higher
operating expenses from restructuring cost. The higher share of profit from an associate partially mitigated
the weaker ICT operating performance.
Engineering - PBT increased in 9M2018 was mainly due to higher profit contribution from the Philippines
and Singapore operations.
Based on the current outlook and barring any unforeseen circumstances, the Group expects operating performance
for 4Q2018 and full year 2018 to be lower than the corresponding periods of 2017. Overall, operating environment
remains challenging. The Group will continue to explore strategic initiatives to further enhance the business operating
This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance,
outcomes and results may differ materially from those expressed in forward-looking statements as a result of risks,
uncertainties and assumptions. Representative examples of these factors include (without limitation) general
industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other
companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and
partners, changes in operating expenses, including employee wages, benefits and training, and governmental and
public policy changes. You are cautioned not to place undue reliance on these forward looking statements, which
are based on current view of management on future events.