Profit slide for Challenger Technologies
Singapore IT products and services provider Challenger Technologies saw its net profit slide 27 per cent to S$13.3 million (US$9.3 million) for the year ended December 31.
For the fourth quarter, the drop was 44 per cent from the same period the previous year to S$4.2 million.
The group’s overall net profit was affected by an impairment provision on its investment in a last-mile delivery company, the closing of its used-smartphone online marketplace and the closure of non-performing retail stores. Without impairment loss provision, the net profit for the full year and fourth quarter would have decreased by 15 and 29 per cent respectively.
Group revenue dipped 4 per cent, or $12.8 million, to $339.4 million for the full year. Fourth-quarter revenue fell by 13 per cent, or $12.2 million.
Revenue from online marketplace Hachi.tech, launched in April last year, managed to offset the loss in physical-store revenue.
Challenger says it expects the challenging retail landscape to continue, but it is banking on a sustainable business model with a strong omnichannel approach.
“Last year was about building a strong foundation with our online expansion. This year, we will work on enhancing Hachi.tech’s capabilities.”
Two businesses that did not perform up to expectations were written off last year, and the company says it will continue to close non-performing outlets in the first half of this year.
Meanwhile, Challenger will open its new flagship store at Bugis Junction in May. The basement store will include new IT concepts. It previous flagship store was closed in June.
The group now has 43 stores, comprising 25 Challenger superstores and 18 small-format outlets.