Challenger's Q3 earnings fall 10% on Malaysian business, sees higher sales in Singapore

Mainboard-listed IT retailer Challenger Technologies reported on Friday that it posted a 10 per cent decline in its third quarter net profit to $3.7 million on the back of lower revenue.

Revenue for the three months ended Sep 30 fell 16 per cent to $82.5 million.

Net profit for the nine months declined 21 per cent to $10 million, as revenue decreased 14 per cent to $250.5 million.

Challenger said the fall in revenue was due to lower sales from its Malaysian retail business, which ceased operations at the end of June.

Lower corporate sales also impacted its turnover, which dragged down overall revenue despite its Singapore retail business reporting higher sales.

Higher sales from its Singapore business was driven by new stores opened, it added. The company now has 44 stores in Singapore.

It said its extensive network of conveniently-located stores island-wide puts it in good stead for the upcoming holiday season quarter.

Chief executive Loo Leong Thye said in a statement: "Q4 is traditionally a good quarter for retailers like us so we are looking forward to it."

"Like most local retailers, we continue to face challenges such as higher costs when it comes to manpower, store rentals and other operating costs," he added.

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