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mDR Ltd Q4 profit drops 41% on higher expenses, lower sales

HIGHER expenses and lower sales took a toll on mDR Ltd's fourth-quarter results, as net profit fell 41 per cent to S$776,000 from S$1.3 million a year ago, the investment firm, which also distributes and sells mobile phones and various consumer electronics products, announced on Thursday night. 

This translated to earnings per share (EPS) of 0.003 Singapore cent for the quarter, from an EPS of 0.01 cent previously. 

As at 9.25am on Friday, the counter was trading at 0.2 Singapore cent, double that of its Feb 28 closing price. 

Revenue slipped one per cent to S$72.4 million, mainly due to lower sales across all business segments, mDR Ltd said. 

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The group has four main business segments, namely investment, after-market services, distribution management solutions, and digital inkjet printing for out-of-home advertising solutions.

Administrative expenses rose by 17 per cent or S$0.8 million to S$5.2 million for the fourth-quarter, mainly attributable to higher staff costs and bonus provisions, the company said. 

For the full year period, net profit fell 38 per cent to S$2.5 million from S$4.1 million a year ago, as revenue dropped four per cent to S$264.9 million. 

EPS for the 12 months ended Dec 31 came in at 0.01 Singapore cent, from 0.032 Singapore cents in the previous year. 

A final dividend of 0.00308 Singapore cent per share has been declared for the current financial year, subject to shareholders' approval at an annual general meeting to be held on April 29. Books closure date has been set for May 9, with the proposed final dividend to be paid out on May 23, mDR Ltd said. 

An interim dividend of 0.00399 Singapore cent, and a final dividend of 0.00798 Singapore cent was declared in the preceding year. 

Looking ahead, mDR Ltd noted that competition in the telco industry is expected to intensify with the entry of the fourth operator and various mobile virtual network operators. Nonetheless, barring any unforeseen circumstances, the company is "committed to achieve better performance and a higher dividend payment for 2019," it said.