SINGAPORE (Aug 1): Telecom and IT service provider S i2i, formerly known as Spice i2i, saw 2Q earnings ended June of $127,000, down more than three-fold from the $433,000 posted in the same period a year ago despite higher sales in Indonesia.

This was because of 13.9% higher purchases and changes in inventories and direct service fees incurred of $82.9 million compared to $72.8 million a year ago as S i2i, through one of its Singapore subsidiaries, ventured into business of battery electric vehicles and passenger land transport in the later part of FY16.

S i2i has been on the SGX Watch List since Mar 4, 2015.

See: Make voluntary general offer or prepare to wind down, say shareholders of Si2i

The group says it is working on a time-bound plan to cut down all loss-making businesses, hold and grow profitable businesses, move “information” to “innovation”, and come out of Watch List.

Turnover for the quarter grew 13.7% to $90.3 million from $79.4 million as distribution of operator products and services in Indonesia continued to grow, while revenue from ICT distribution and managed services reflected a marginal growth over the quarter.

For 1H17, the group posted earnings of $240,000, down 86.6% from $1.8 million in 1H16.

Again, purchases and changes in inventories and direct service fees incurred widened 11.8% to $164 million from $147 million a year ago.

Looking ahead, the group says the business of ICT distribution & managed services in Singapore showed “encouraging signs of turnaround based on focus on services and cost optimisation”.

It will also focus on services-driven business and key innovative offerings aligned to IBM and HP strategy to improve margins while its IT business explores tie-ups with other IoT and innovation-based vendors and also work on plans to have strategic tie-ups which can enhance value added services options in existing customer base. 

Shares in S i2i closed 2 cents higher at $2.48 on Monday.