SINGAPORE (Apr 17): Keppel Telecommunications & Transportation (Keppel T&T) reported a 16.3% drop earnings to $9.4 million in 1Q18.
Revenue for the quarter was 5.1% higher at $42.8 million from $40.7 million a year ago, due to higher revenue from Data Centre Division, partly offset by lower revenue from Logistics Division.
But operating expenses increased by 7.7% to $47.0 million due mainly to the higher overheads incurred on developing the new channel management business in the Logistics Division and increased manpower to support new business developments in the Data Centre Division while other income declined 39.1% to $0.77 million.
Operating loss for 1Q18 therefore widened to $3.43 million in 1Q18. However, share of results from associated companies and joint ventures came in just 4% lower at $16 million in 1Q18.
Thomas Pang, CEO of Keppel T&T says, “As Keppel T&T progresses on its new growth phase, we are working hard to evolve our Logistics and Data Centre businesses, building new capabilities to position them for long term, sustainable growth. We shall continue to optimise cost, improve margins and also intensify efforts to pursue new asset development and acquisition opportunities for better returns.”
Shares in Keppel T&T closed 1 cent lower at $1.57 on Tuesday.
