FINANCIAL PERFORMANCE
The Group registered revenue of
S$516.8 million for the year ended
31 December 2014 (“FY2014”) which
was a 7.1% decrease from S$556.3
million in FY2013. The lower revenue
performance was attributable to lower
revenue from Personal Communications
Solutions Services (“PCS”) and Network
Engineering Services (“Engineering”)
divisions.
Profitability wise, full year gross profit
was S$42.5 million. Gross margin
improved by 0.4 percentage points
to 8.2% in FY2014 with better profit
margins from PCS and Engineering
divisions due to a change in sales
mix and improvement in Singapore
and Malaysia operations respectively.
Group PBT rose to S$11.4 million, an
improvement of 3.1% compared to
S$11.1 million in FY2013 attributable
to higher gross margin and lower
operating expenses. This translated into
net profit of S$9.4 million which was a
3.0% decrease over S$9.7 million in
FY2013.
On the balance sheet, the Group’s
cash position was S$38.0 million as
at 31 December 2014, compared to
S$48.9 million over the same period
last year.
PERSONAL COMMUNICATIONS
SOLUTIONS SERVICES (“PCS”)
PCS contributed revenue of S$364.6
million and PBT of S$6.8 million in
FY2014 which is 70.5% and 59.6%
of total Group revenue and operating
PBT respectively. The decrease in
revenue of 8.1% or S$32.1 million
was on account of lower sales to a
major Singapore customer and lower
prepaid card sales, mitigated by higher
channel sales and regional business.
PCS’ sales were favourably impacted
by the positive response to Samsung’s
GALAXY Note 4 and Note Edge, as
well as strong demand for Apple’s
iPhone 6 and 6 Plus. There was also
an influx of more affordable phones
such as Alcatel, OPPO and Xiaomi.
The Infocomm Development Authority’s
(“iDA’s”) restriction on SIM registration
affected sales of prepaid cards as did
competition from other market forces.
Operating PBT increased by 13.3%
or S$0.8 million mainly from higher
gross margins and lower operating
expenses. Planet Telecoms Managed
Services Sdn Bhd (“PTMS”) performed
strongly despite intense competition
from other local operators. PTMS
provides U Mobile Sdn Bhd (“U Mobile”)
in Malaysia with an expanded scope of
services covering retail management,
fulfilment and supply chain services.
PTMS currently operates a total of
16 U Mobile shops and works closely
with U Mobile and manufacturers for
new product launches and marketing
initiatives.
Planet Telecoms (S) Pte Ltd (“Planet
Telecoms”) continued to build on its
strong relationships with its partners.
It opened two new StarHub Platinum
outlets, at Bugis Junction and Westgate.
It also opened a new Planet Telecoms
retail outlet at The Seletar Mall. In total,
there are now four StarHub Platinum
stores, three Samsung Experience
Stores, and four Planet Telecoms retail
outlets throughout Singapore. On top of
that, Planet Telecoms also ventured into
the online space by launching its online
shop, ePlanetWorld (
com), which gives consumers access
to a wide range of competitively priced
mobile devices, accessories and IT
peripherals.
PCS’ excellence in service was
recognised through its success in
winning four StarHub awards namely
(i) Star Achiever Award, 2014, (ii)
Top Sales, Platinum Shop – Mobile
2014, (iii) Top Sales – Entertainment
and SmartLife, 2014, and (iv) Best Net
Promoter Score (NPS), 2014.
OPERATIONS
REVIEW
TELECHOICE INTERNATIONAL LIMITED
ANNUAL REPORT 2014
15
