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TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
GROUP FINANCIAL
REVIEW
1.0 Operating Results of the Group
In $ million
FY2015
FY2014
Change (%)
Revenue
580.7
516.8
12%
Gross profit
43.1
42.5
1%
Other income
1.2
0.9
33%
Total expenses
(569.1)
(506.3)
12%
Operating PBT
12.8
11.4
12%
Exceptional items
(0.6)
–
nm
PBT
12.2
11.4
7%
PAT
10.0
9.2
9%
PATMI
10.3
9.4
10%
nm: not meaningful
1.1 Revenue
Group revenue increased by 12% or $63.9 million to $580.7 million in FY2015.
Personal Communications Solutions Services (“PCS”)
contributed to 71% of group revenue in FY2015 (FY2014: 71%). Revenue
increased by 13% to $413.7 million in FY2015 due to higher prepaid sales with the appointment as the new master distributor.
These were offset by lower channel sales in Singapore and lower revenue from Malaysia.
Info-Communications Technology Services (“ICT”)
contributed to 19% of group revenue in FY2015 (FY2014: 19%). Revenue
increased by 9% to $109.6 million in FY2015 due to higher enterprise solutions sales and more project completed.
Network Engineering Services (“Engineering”)
contributed to 10% of group revenue in FY2015 (FY2014: 10%). Revenue
increased by 12% to $57.4 million in FY2015 due to higher transmission equipment sales in Singapore, higher revenue recognition
from Radio Network Planning projects and power supply products sales in Indonesia. These were offset by lower revenue from
Malaysia.
1.2 Gross profit
In $ million
FY2015
FY2014
Change (%)
Gross profit
43.1
42.5
1%
Gross margin
7.4%
8.2%
-0.8 ppt
ppt – percentage point
Gross profit
increased to $43.1 million in FY2015. The increase was contributed by PCS.
Gross margins
declined from 8.2% in FY2014 to 7.4% in FY2015. Excluding the zero margin handset sales to a major customer
in Singapore, gross margins would have declined from 12.1% to 10.4% in FY2015. PCS FY2015 gross margin was maintained
at the same level as FY2014. Lower gross margin from ICT in FY2015 was due to sales mix while Engineering’s lower gross
margin was due to weaker performance from its Malaysian operations.
