Here’s How Telechoice International Ltd Makes Its Money
Telechoice International Ltd (SGX: T41) is a regional provider of info-communications products and services. The company captured my attention recently because I found out that it was trading near a 52-week low.
I wanted to better understand the business, and so I looked at how the company makes its money. Here’s a table showing the revenues from Telechoice International’s three different business segments in the first quarters of 2017 and 2016:
Source: Telechoice International 2017 first quarter earnings
The PCS segment distributes communication devices, wearables, and accessories. It also provides supply chain management services for the product categories listed just above.
In Singapore, the PCS segment operates a retail chain through two subsidiaries. It also manages five StarHub Platinum shops, in addition to managing concept stores for major mobile device manufacturers. The PCS segment is also active in Malaysia – there, it provides retail management, fulfilment and supply chain services to one of the country’s fastest growing mobile operators, U-Mobile.
Meanwhile, the ICT segment deals with “enterprise IT infrastructure, business solutions and integration services, managed and hosted services, fixed and wireless networking solutions, as well as contact centre and unified communications solutions.” Through the ICT segment, Telechoice International is also providing consultancy services to companies in the areas of “cloud, big data, analytics, internet of things” and more.
Cloud computing, big data, analytics, and internet of things are sectors that are generally growing rapidly. But, Telechoice International does not seem to have been able to tap onto the growth, given that the ICT segment’s revenue in the first quarter of 2017 actually declined by a sharp 31%.
Engineering is the last segment in Telechoice International and it designs, builds and manages telecommunication networks, in addition to providing various types of network infrastructure-related products and services to fixed and mobile operators in the Asia-Pacific region.
Some examples of the services offered by the Engineering segment are radio network planning and optimisation, transmission network planning, and network implementation.
By understanding the different ways Telechoice International makes money, investors can make a better judgement on the overall prospects of the company.