Vivocom posts 4Q loss following provision of doubtful debts

KUALA LUMPUR (Feb 28): Vivocom International Holdings Bhd posted a net loss of RM2.64 million for the fourth quarter ended Dec 31, 2017 (4QFY17), compared with a net profit of RM821,000 a year earlier, due to the provision of doubtful debts totalling RM5.93 million under its telecommunications segment.

Quarterly revenue dropped 27.59% to RM33.31 million from RM46.01 million, Vicocom said in a filing with the stock exchange today.

The group said the telco segment contributed RM1.03 million of the total group revenue, against RM13.74 million a year ago, due to lower work orders received and the delay in award and implementation of the next phase of the universal service provision (USP) project under the Malaysian Communications and Multimedia Commission.

For the cumulative 12-month period, Vivocom’s net profit slumped 72.92% to RM14.59 million, from RM53.90 million in FY16. Revenue fell 50.21% to RM181.73 million, from RM365.03 million.  

The group said its aluminium segment's revenue in FY17 increased by 14.25% to RM51.95 million from RM45.47 million in FY16, thanks to higher project wins and roll-outs during the year.

However, the construction division’s revenue fell 60.08% to RM107.36 million from RM268.95 million, due to the aggressive roll-out of projects under the “to clear the backlogs” in FY16, as compared with 2017 which had slower progress billings.

Going forward, Vivocom said it has been awarded numerous projects for the aluminum and construction segment, which will keep the group busy for the next two to three years.

“In view of these positive developments and the group strong order book, barring any unforeseen circumstances, the board is optimistic of achieving a satisfactory performance for the next financial year ending Dec 31, 2018,”  Vivocom said.

Vivocom’s share price closed 0.5 sen or 5.26% lower at 9 sen today with 2.64 million shares traded, giving it a market capitalisation of RM322.88 million. — theedgemarkets.com

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