Sophos into its product offerings. It
also grew its order book for enterprise
products and services and improved
enterprise solution sales through
partnership with telco channels.
NETWORK ENGINEERING
SERVICES (“ENGINEERING”)
Engineering division contributed full-
year revenue of S$51.3 million, a
decrease of 17.1% due to lower
transmission equipment and products
sales in Singapore and lower revenue
recognition from Radio Network
Planning projects in Indonesia.
These were partly offset by higher
revenue from projects in Singapore
and products sales in Malaysia. PBT
decreased by 5.3% to S$3.6 million
mainly due to lower profit contribution
from Indonesia operations, but partially
mitigated by improved operations in
Malaysia. Engineering’s revenue and
operating PBT contribution to the
Group stood at 9.9% and 31.6 % of
total Group revenue and operating PBT
respectively.
Singapore operations in 2014 were
challenged by capex restraints and
order delays by customers. The bulk
of the LTE network rollout in Singapore
has been completed, but there were
increased network quality and coverage
enhancement activities as a result of
iDA’s revised quality framework for
mobile networks.
In Indonesia, a general market
slowdown in the months before and
after the political election, coupled
by the weak Indonesian Rupiah, had
impacted revenue. Elsewhere in the
region, network rollouts, refresh and
upgrades continued to be the demand
driver.
PROSPECTS & GROWTH
STRATEGIES
While there is still much uncertainty
in the global and local economy with
instability in oil prices, deflation in
Europe and a slower growth in China,
all of which will impact the domestic
economy, we are cautiously optimistic
in the performance of our business
divisions.
The
continued
demand
for
smartphones, intelligent wearable and
other mobile products will provide
opportunities for PCS division. Aside
from working to bring in new products
and accessories to satisfy consumer
demands, PCS will work closely with
manufacturers and deeply entrench
itself within its channel strategies. PCS
will continuously look for further revenue
streams and new areas of growth.
ICT success in public sector projects
will enhance our track record for more
projects in this sector. In particular, we
are optimistic of the education sector.
This and the Government’s Smart
Nation Initiative will provide the impetus
for future growth. ICT will continue to
develop new competencies and expand
its product and service offerings in the
enterprise space.
Engineering will benefit from regional
LTE rollouts, network refresh and
upgrades as well as bandwidth/speed
enhancements driven by voracious
customer demand for ever faster
connections to facilitate the advent
of newer mobile apps and intelligent
devices. It will explore new markets in
earnest while maintaining its position of
strength in existing markets.
OPERATIONS
REVIEW
TELECHOICE INTERNATIONAL LIMITED
ANNUAL REPORT 2014
19
