Here Are 2 Companies That Delivered Mixed Results in Their Latest Earnings

Over the recent earnings season, we have seen companies that have reported growth, and companies that have  reported weak results.

Examples in the former group include Hour Glass Ltd (SGX: AGS) and Sheng Siong Group Ltd (SGX: OV8). On the other side, Vicom Limited (SGX: V01) is an example of company that announced weaker results recently.

Beyond the two groups, there is a third group that reported results that were neither strong nor weak. In other words, the results were mixed. We will look at two of these companies today:

1. In late October, Yoma Strategic Holdings Ltd (SGX: Z59) released its second quarter results for its fiscal year ending 31 March 2018 (FY2018).

A brief introduction, Yoma Strategic is a conglomerate that focuses on Myanmar. It has business interests in a wide variety of sectors, such as real estate development, agriculture, tourism, vehicle distribution, and even food and beverage retail.

For the latest-quarter, revenue was up by 32.9% year-on-year to $33.1 million. Unfortunately, net profit attributable to shareholders was down by 56.8% year-on-year to just $3.7 million. The improvement in revenue was driven by higher tractor sales and KFC store expansion. The profit decline came from the absence of a fair value gain from financial assets which was recognised in the second-quarter of FY2017.

Yoma Strategic’s Chief Executive Officer Mr Melvyn Pun commented on the quarter’s results:

“We are pleased to deliver a solid revenue growth supported by better operational performance. In the coming months, we expect the positive momentum from our non-real estate business to continue with the opening of more KFC restaurants and the peak dry season for our New Holland tractors.”

2. Singapore Telecommunications Limited (SGX: Z74) is another company that reported mixed result recently. The conglomerate reported its second-quarter earnings for the financial year ended 31 March 2018 (FY2018) earlier this month.

Singtel is the biggest among the three telcos in Singapore. The other two are M1 Ltd (SGX: B2F) and StarHub Ltd (SGX: CC3). The group has three business segments, namely consumer, enterprise and digital life.

Group revenue for the quarter was up 6.9% year-on-year to $4.37 billion. Meanwhile, net profit came in over 197% higher year-on-year due to a one-off gain from its disposal of a big chunk of its shares in NetLink NBN Trust (SGX: CJLU). But, when you strip away the gain, underlying net profit actually fell 4.1% year-on-year to $929 million. Singtel’s revenue growth was driven by better performance in the Enterprise and Digital Life segments.

Singtel also announced an interim dividend of 6.8 cents per share, and a special dividend of three cents per share (related to the NetLink Trust disposal), bringing the total dividend for the quarter to 9.8 cents.

Chua Sock Koong, Singtel’s chief executive shared her view on the latest result:

 “Our first half results have been achieved against a tougher business backdrop, a testament to the strength of our core and digital businesses. Digital and ICT services now account for 25% of our revenue, reflecting positive momentum in our digital transformation. Our digital marketing arm Amobee has scored more customer wins and is gaining strong momentum in Asia. With the successful IPO of NetLink Trust, we are pleased to share the proceeds with a special dividend and to further invest in our core and digital businesses.”

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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.