Challenger profit up 15% to $4.6m on IT retail expansion

Revenue hit past $100m mark.

In a release, SGX Mainboard-listed Challenger Technologies Limited (Challenger), the largest IT products and services provider in Singapore, announced its results for the quarter ended 31 March 2013. Group revenue jumped 41% from $71.4 million in 1Q2012 to $100.7 million in 1Q2013 largely contributed by the expansion of the Group’s retail operations and improved performance of its existing stores. Revenue for IT products and services business segment in Singapore grew by 42% from $66.7 million in 1Q2012 to $94.7 million in 1Q2013. Operations in Malaysia registered a revenue growth of 27% compared to 1Q2012.

Driven by strong retail performance, net profit increased 15% to $4.6 million in 1Q2013. This has been mainly backed by higher gross profit from the Group
operations compared to 1Q2012.

To date in Singapore, the Group has a total of 29 stores comprising one flagship Challenger megastore, 18 Challenger superstores and 10 Mini stores. In Malaysia, the Group operates one flagship Challenger megastore and two Challenger superstores.

Mr. Loo Leong Thye, the Chief Executive of the Group, said, “We are pleased with our improved performance in 1Q2013. We see better performance from our IT retail business in Singapore and we will open another two stores in Singapore during the second quarter of 2013.”

He further added, “We will continue to focus on expansion in Singapore and Malaysia. We will also seek to explore other retail opportunities for expansion in the region where growth opportunities are still available.”