Challenger Technologies reports 2Q19 net profit rose 4 percent

Challenger Technologies outlet at SuntecChallenger Technologies outlet at Suntec. Photo taken pre-Covid

Challenger Technologies reported Monday its second quarter net profit rose 4 percent on-year to S$4.17 million amid higher contributions from IT products and services.

Revenue for the quarter ended 30 June rose 8 percent on-year to S$82.36 million, the consumer electronics retailer said in a filing to SGX.

IT products and services revenue increased 7.7 percent on-year in the quarter to S$80.9 million, mainly on higher contributions from trade show and corporate sales, Challenger said.

The electronic signage services segment posted revenue doubled to S$200,000 for the quarter, from S$100,000 in the year-ago period, mainly on audio and lightings retail operations.

“We will continue to explore business opportunity with strategic partners to continue to grow our business in architectural and
commercial lighting projects,” Challenger said.

The telephonic call center and data management services segment’s revenue rose 16 percent on-year to S$2.9 million as more marketing projects were secured, the filing said.

For the first half, Challenger reported net profit fell 10 percent on-year to S$8.26 million on revenue of S$163.29 million, up 6 percent on-year.

Challenger issued a cautious outlook.

“Retail trade continues to remain challenging in 2019. The group will close another two stores in the second half of the year. We are also looking at expanding the ‘PIT.Money’ concept store to further tap into the market segment of pre-owned and demo products,” the company said. “The Challenger superstore at Paya Lebar Quarter is set to be opened in the third quarter of this year. As of today, the group has a total retail network of 40 stores in Singapore.”

Challenger didn’t declare an interim dividend, compared with a year-ago divided of 1.10 Singapore cents a share.

“In view of the uncertainty in the market outlook and business environment, the goard deems it prudent to defer any decision on dividends till the end of the financial year,” Challenger said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.