Challenger's H1 net profit steady at S$9.3m

EVEN as the pandemic challenges retailers, Challenger Technologies held its net profit steady at S$9.3 million for the half-year ended June, down 3 per cent from a year ago.

The H1 revenue of the computer gadgets retailer rose 15 per cent year on year to S$135.8 million, on the back of a 14.7 per cent rebound in the IT products and services segment to S$134.1 million. Retail operations were relatively strong, compared to the time the circuit breaker was in force last year.

However, the company also saw weaker contributions from online sales.

Revenue from its telephonic call centre and data-management services improved by 23.1 per cent to S$1.6 million in H1, mainly driven by recovery in data management and marketing projects.

Despite the revenue gains, Challenger's bottom line was challenged by higher costs. Premises expenses increased by S$2.5 million with lower rental waiver and rebates, and employee benefits expenses rose by S$400,000. Sundry income was also lower with less government grants.

Challenger expects the retail sector to remain challenging, and plans to "focus on driving greater productivity, ramping up e-commerce engagement and enhancing its overall product range". It will also continue to explore opportunities to grow its business in architectural and commercial lighting projects.

Its shares closed at S$0.58 on Thursday, up 0.87 per cent.