You are here
Venture Corp Q3 net profit falls 27.5%, misses street estimates
VENTURE Corporation on Friday posted a net profit of S$80.8 million for the third quarter ended Sept 30, down 27.5 per cent from a year ago, missing street estimates.
Revenue fell 27.4 per cent to S$770.4 million, mainly attributable to the impact arising from customers' planned transition to new replacement products and some customers' merger and acquisition (M&A) activities for the reported quarter.
Earnings per share stood at 16.7 Singapore cents for the quarter, down from 39.5 cents a year ago.
No dividend was declared.
In its outlook, the group said that it anticipates that new product introductions from several customers are expected to drive healthy revenue improvement sequentially in the next quarter. As it deepens existing collaborative partnerships, it is concurrently working on "broadening its strategic alliances across its diversified portfolio of new and adjacent ecosystems".
The group also expects to capture revenue contribution from several new customers in the next quarter, with improving traction in subsequent reporting periods. Furthermore, customers' M&A transitions are still in progress and the group said it believes that business momentum should pick up again after the M&A integration processes are completed.
While current trade tariffs have no material impact on the group's business at this moment, the group said that it is "cognisant that a major escalation of the trade war may lead to new macroeconomic risks".
However, it maintained that growth drivers across Venture's broad-based portfolio of technology domains and strong supply chain management will provide resilience and stability to its long-term performance.