DEAR SHAREHOLDERS
We are pleased to inform you that the
financial performance of the TeleChoice
Group (“the Group”) for the financial year
ended 31 December 2014 (“FY2014”)
showed improved margins against
FY2013, despite a challenging year with
economic headwinds.
FY2014 Performance
Group revenue for the year was S$516.8
million. The Group registered higher
operating profit before tax (“PBT”) of
S$11.4 million as compared to FY2013
from lower operating expenses. Group
net profit after tax was S$9.4 million,
with earnings per share of 2.06 cents.
The Group kept its balance sheet strong,
closing the fiscal year with S$38.0 million
in cash as at 31 December 2014.
Focus on Building Relationships
The focus for 2014 was to establish
symbiotic relationships with operators
and business partners – positioning
ourselves as a major outsource and
preferred partner across all our business
divisions and to evolve from merely selling
products to offering end-to-end services.
We have met with encouraging success
in our endeavors. We also channeled our
energies into enterprise sales whilst at
the same time seizing opportunities in the
consumer space as and when they arose.
In the Personal Communications Solutions
Services (“PCS”) division, aside from
enjoying revenue from newly released
handsets from market leaders, Apple
and Samsung, we were able to secure
distribution rights to more brands of
handsets to cater to the wide spectrum of
the consumer market. PCS, in keeping with
the (overarching) focus of creating value-
added relationships with our partners,
worked closely with manufacturers in the
roll-out of new products and promotions,
and played a strategic role in their overall
marketing plans. It replicated this strategy
in Malaysia where Planet Telecoms
Managed Services Sdn Bhd (“PTMS”)
worked closely with U Mobile Sdn Bhd (“U
Mobile”), to expand its touch-points and
launch new programmes. Not neglecting
our Singapore retail customers, Planet
Telecoms (S) Pte Ltd (“Planet Telecoms”),
ensured its accessibility to consumers in
all parts of Singapore with new stores in
the northern and central regions. In the
year ahead, the master distributorship
for StarHub prepaid cards will enhance
revenue streams for this sector as we
continue to find other means to increase
our service offerings to manufacturers
and partners in the various components
of PCS’ business.
The Info-communications Technology
Services (“ICT”) division expanded its
focus to the public sector and enjoyed
success with project wins from various
government agencies. ICT positioned
itself well to cater to the demand for
high-end, sophisticated contact centre
solutions particularly in the healthcare
and financial services industries. On the
product distribution front, effort was put
into securing more brands. While the
IDD segment remained as competitive as
ever, wholesale voice revenue contributed
positively to ICT’s sales. In FY2015, we
anticipate that the government sector will
offer opportunities and we will compete
selectively for projects in this space on
our own as well as in partnership with
other players as Singapore progressively
implements initiatives of the Smart Nation
master plan. We will also keep our focus
on the growing data center space, data
storage and its concomitant needs being
an area which holds much prospect. We
will look for ways to enhance our end-to-
end service offerings.
While Network Engineering Services
(“Engineering”) division faced revenue
challenges in Singapore and Indonesia,
its margins improved due to the nature
of the projects undertaken. It held its
leadership position in Radio Network
Planning and Optimisation and in Malaysia,
it maintained its position in In-building
Coverage projects. Encouragingly, it
secured some breakthrough sales in
Vietnam, which is a newer market and
it explored project opportunities in the
Philippines with its partners. As part of
Engineering’s expansion strategy into
other markets, efforts were stepped up in
regional markets. Greater regional focus
into new markets will be a key theme for
Engineering in FY2015.
Strengthening our Internal Structures
A large portion of our energies was
channeled into our move from Clementi
Loop to 6 Serangoon North Avenue 5,
our new corporate office, and to 5A Toh
Guan East, which houses PCS. With a
new corporate office, we consolidated
our operations, streamlined business
processes and leveraged on shared
competencies to increase productivity,
achieve greater efficiencies, and enhance
capabilities.
As we progress in this new millennium
where technologies are disrupting the
norms of work and everyday life, we
have to ensure that we stay on-trend to
remain relevant to the needs of not only
of our customers but also our internal
stakeholders and their work aspirations.
We, therefore, looked into working
trends that cater to the needs of a new
generation of workers. Our new corporate
office will cater to the demands for
greater collaboration and cross-functional
teamwork with more space for interaction
and brainstorming.
Aside from providing our staff the
necessary hardware, we also ensured
that they are equipped with the necessary
skill sets to perform to their fullest
potential. Hence, despite the logistical and
operational demands of our shift to the
new corporate office, our Human Resource
department dedicated much time and
energy into identifying the training and
development needs of the organisation for
FY2014 and beyond. We expended effort
into revamping our talent management
and succession planning initiatives to
ensure continuity of leadership well into
the future, putting in place more formal
structures and progression checklists to
ensure our objectives in this area are met.
Beyond TeleChoice
As part of our on-going Corporate Social
Responsibility programme and in order
to provide opportunities for our staff to
contribute to the larger community in
simple but meaningful ways, we organised
three outreach projects: a series of DUCK
HiPPO Fun Day City Tours for children
from Pathlight School, participation in the
SGX Bull Charge 2014 and a hospice
visit to Assisi Hospice. In the year ahead,
we will continue to support various social
programmes with emphasis on helping the
disabled, disadvantaged, and medically
or socially challenged in the community.
Looking Ahead
We anticipate that the consumer trends
facilitating the implementation of the
Internet of Things, enterprise needs and
regional network upgrading will continue
LETTER TO
SHAREHOLDERS
TELECHOICE INTERNATIONAL LIMITED
ANNUAL REPORT 2014
06
