Neratel’s telecom revenue dropped 29.6% in Q3

Its infocom segment came to the rescue.

Neratel’s 3Q14 revenue dipped slightly by 1% year-on-year to $49.7m, brought about by a 29.6% decline from its telecom segment.

The decline was due to revenue recognition and was partially offset by higher turnover from the infocom segment, which grew 29.2% year-on-year.

According to OSK DMG, gross profit margin shrank to 30.2% from 30.5% partially due to a change in sales mix in product, project and services. Net profit inched up slightly by 7.5% YoY to $3.54m from $3.3m in Q3.

“We expect management to still be able and reward shareholders with at least an annual dividend of SGD0.06 in FY14&15, which constitutes an attractive dividend yield of around 7.4% in both years, unless they suffer a plunge in its earnings. Going forward, we expect these two business segments to continue to deliver strong blended growth of above 20%, offsetting any decline in revenue from the telecom segment,” stated OSK DMG.