Challenger Tech posts 5% drop in Q3 net profit on flat revenue

CHALLENGER Technologies on Monday posted a 5 per cent drop in its third-quarter net profit to S$4.3 million, on the back of flat revenue of S$83.3 million, which rose just 1 per cent from a year ago.

The consumer electronics retailer said the slight increase in revenue was mostly driven by improved performance from its IT products and services segment, which saw revenue rise 1.1 per cent to S$81.8 million from higher revenue contribution from trade shows and corporate sales. This was partially offset by lower contribution from retail sales. 

That said, increased staff costs, higher rentals due to new store openings, higher selling and distribution costs mainly from card surcharges as well as advertising and promotion expenses, and other operating expenses to support business operations pulled the group into the red instead.

The group said: "Amid a global economic slowdown and challenging operating environment, the group will continue to grow Challenger's footprint in Singapore and expand the 'PIT.Money' concept store to further tap the market segment of pre-owned and demo products."

This concept store stocks end-of-life, demo and trade-in IT products.

Challenger has a total retail network of 40 stores in Singapore.