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These 2 Companies Delivered Mixed Results In Their Latest Earnings

Photo credit: Rafael Matsunaga. Licence: http://creativecommons.org/licenses/by/2.0/

We’re nearing the end of the earnings season!

As is common with every earnings season, there will be some companies posting growth, some companies posting mixed numbers, and some companies experiencing declines. So, which are the companies that have recently reported mixed results? Let’s look at two of them:

1. StarHub Ltd (SGX: CC3) reported its 2017 first quarter earnings last week. The company is likely to be well-known amongst investors in Singapore given the fact that it is one of the three telcos that are currently operating here.

During the quarter, the company’s total revenue had inched up by 0.2% to S$592.3 million. But, its Service revenue – the source of recurring revenue – fell by 1.0% to S$537 million. Meanwhile, StarHub’s profit attributable to shareholders sank by 21.3% to S$73.1 million. Although the company managed to grow its free cash flow in the reporting quarter compared to a year ago, its balance sheet had weakened.

In the earnings release, StarHub’s chief executive officer, Tan Tong Hai, shared some comments on the company’s plans for the future:

“We have made the necessary investments in the recent spectrum auction to continue delivering quality mobile services to our increasing Mobile base. The acquired spectrum will also facilitate our roadmap towards 5G.

Driving growth in the Enterprise business remains our priority and we are on track to introduce new cyber security, IoT and smart retail solutions to the market. We will grow our Enterprise digital services offerings with our latest strategic management addition.

Underpinning our overall business strategy is our continued digital transformation drive to increasingly engage and service our customers via digital channels and self-help applications.”

2. BreadTalk Group Limited (SGX: 5DA) is the next company in line. Last week, BreadTalk released its 2017 first quarter results and reported a 4.5% year-on-year decline in revenue to S$147.6 million. But, there was a significant increase in profit attributable to shareholders from S$0.84 million a year ago to S$9.7 million.

Regarding the future, BreadTalk shared the following comments in its earnings release:

“The Group has seen strong recovery in its core business supported by its commitment to slow down its pace of outlet expansion amidst a more cautious F&B / retail environment, streamline our operations and better control our costs. The focus shall remain on profitability and the quality of earnings in FY2017.”

BreadTalk is a food & beverage retail company. It currently has 855 bakery outlets, 57 food atriums, and 32 restaurants around the world. Its geographical focus is mainly Asia.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.