SINGAPORE (Mar 1): Global Invacom returned to profitability in the fourth quarter, reporting earnings of US$0.78 million ($1.03 million) in 4Q17 compared to a loss of US$2.4 million in 4Q16.
For the full year, the group which manufactures and distributes in satellite ground equipment, also reported earnings of US$2.9 million compared to a loss of US$2.7 million.
Revenue for 4Q17 amounted to US$29.8 million, 3.9% lower than US$31.0 million in 4Q16, mainly attributed to the US$2.0 million reduction from the consolidation of operations in Shenzhen.
Gross profit for the quarter increased by 7.8% to US$6.3 million from US$5.8 million on lower revenues driven by a gross margin improvement of 2.3% to 21.1% from process improvements and a more favourable product mix.
Other income derived primarily from foreign exchange gains fell 6.4% to US$0.34 million while other operating expenses made up mostly from allowances for impairment of trade receivables fell 92.2% to US$47,000.
Administrative expenses in 4Q17 decreased 31.3% to US$5.4 million.
For 4Q17, the group recorded US$1.0 million profit before tax compared to US$2.4 million loss before tax in the prior year quarter.
Despite Over-The-Top (OTT) viewing and service bundling, Global Invacom says broadcasters will continue to offer new services and enter into new markets, leveraging on the latest innovations and technologies.
According to the Satellite Industry Association’s 2017 State of the Satellite Industry Report, satellite subscription grew 2% to US$260.5 billion, attributed mainly to increasing consumer appetite for higher quality video (4K and developing 8K) and commercial viability in remote areas.
Global sporting events such as 2018 Football World Cup in Russia, 2019 Rugby World Cup and the 2020 Summer Olympics in Japan have garnered significant government and commercial attention and commitment to developing the infrastructure.
Shares in Global Invacom closed at 13 cents on Wednesday.
