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Tag: quarter report

  • Snapdeal trims losses for FY18, exudes confidence on hitting profits

    Snapdeal trims losses for FY18, exudes confidence on hitting profits

    E-commerce firm Snapdeal has narrowed its consolidated losses substantially to Rs 613 crore for FY2017-18, as per regulatory documents. According to a report: The company, which competes with larger rivals like Amazon and Flipkart, had posted a consolidated loss of Rs 4,647.1 crore in FY2016-17, documents filed with the Corporate Affairs Ministry showed.

    The consolidated revenue from operations declined to Rs 436.1 crore for 2017-18 as against Rs 903.8 crore in the previous financial year.

    On standalone basis too, Snapdeal trimmed its losses to Rs 440.7 crore in 2017-18 from Rs 4,638.9 crore in the year-ago period. Total revenue was at Rs 514.6 crore in FY18 as against Rs 1,105.7 crore in the previous fiscal.

    Snapdeal, in its filing said, the company had embarked on its journey towards profitability last year.

    “This year, we continued on this path and focused on building a leaner and more capital efficient business. We substantially reduced our costs, both variable and fixed overheads,” it added.

    The company said it reduced its business promotion expense by 88 percent year-on-year, whereas fulfilment expenses were lower by 67 percent y-o-y.

    “We optimised the team structure and leveraged technology more efficiently, which was critical in trimming our employee expenses by 68 per cent y-o-y. While all of this has come at the expense of lower top line, your company is extremely proud of its achievements over the year and is absolutely confident that it is heading in the right direction to achieve profitability,” it said.

    When contacted, a Snapdeal spokesperson said, “Our prime focus last year was to maximize the operating efficiency of the marketplace ahead of implementing our planned growth initiatives. We are extremely pleased to see the incredible results from our disciplined execution with losses reducing by 88 percent”.

    In addition, parts of the revenue, which were disproportionately loss-making, were identified and curtailed during the year in order to realign the business for growth with healthy margins, the spokesperson added.

    Snapdeal, which had seen its business being impacted severely by the intense competition in the e-commerce segment, had last year dumped the US$ 950-million takeover offer from rival, Flipkart.

    It was then that Snapdeal Co-founders, Kunal Bahl and Rohit Bansal had said the company will pursue a fresh strategy in the Indian market.

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  • Pandora sales declining, relies on China

    Pandora sales declining, relies on China

    Jewellery retailer Pandora is looking to China, India and Latin America to arrest a decline in global sales. The Danish company has unveiled an initiative that it hopes will reignite sustainable revenue growth, Programme Now, after group revenue dropped 3 per cent in the third quarter of this year.

    Under the program, Pandora will significantly reduce its franchise acquisitions and scale back new store openings. For the stores it does open, it will concentrate on growth markets, such as China, India and Latin America. It hopes the move will grow like-for-like sales, if not total sales.

    To achieve this, the business plans to enhance its marketing, personalisation, digital and e-commerce capabilities, as well as the in-store customer experience.

    Pandora also noted that part of its success moving forward lies in execution in all parts of the value chain, as well as more closely coordinating parts of the business to work in tandem, to reduce costs.

    The implementation of the program, as well as the weak third-quarter results, however, have led the company to revise its full-year earnings guidance. It has cut its annual revenue forecast from between 4 and 7 per cent to between 2 and 4 per cent, or DKK 1.2 billion to DKK 1.4 billion (US$184 million to $214 million).

    “The third quarter results were unsatisfactory and we adjust our full year guidance,” Pandora CFO Anders Boyer said.

    “We have taken the first major step in the programme today by changing our network expansion plan. We have confidence in a strong future for Pandora and will use this year and next to reset the business.”

    Pandora expects revenue and total like-for-like growth to be impacted through to 2020 by the planned reduction of mark-downs, though this is likely to cause a margin neutral result on the group level.

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  • Viettel’s foreign market earnings up in Q3

    Viettel’s foreign market earnings up in Q3

    Viettel earned gross profits of $57.25 million from overseas markets in Q3, a year-on-year increase of 8 percent. Its overseas investment arm, Viettel Global, reaped net revenues of nearly VND4.43 billion ($188.71) in the third quarter, up 5 percent over the same period last year.

    Accumulated net revenues reached VND12.43 trillion ($529.7 million) between January and September.

    The revenues include nearly VND5.61 trillion ($238.94 million) from African countries, including Cameroon, Tanzania, Mozambique and Burudi, VND4.54 trillion ($193.68 million) from Southeast Asia countries, including Cambodia and East Timor, and VND1.69 trillion ($71.82 million) from Latin America.

    The company’s revenues from its three continents rose 3-11 percent, with Latin America registering the greatest increase.

    The increase is attributed to the company’s development of 4G services, digital wallet and other information technology projects serving overseas businesses and governments.

    Viettel Global is providing 4G services in 9 overseas markets, and digital wallet services in 8 markets.

    Also, Viettel Global’s sales expense and management costs reduced 4 percent and 12 percent respectively in the first 9 months of this year, compared to the same period last year.

    Viettel Global was established in 2006 to spread Viettel Group’s presence in foreign markets. Eight out of Viettel Global’s 10 overseas markets have begun earning profits. It has taken up the largest market share of the telecommunications sectors in Laos, Cambodia, and Timor Leste.

    It plans to expand its overseas operations in the Southeast Asian region and foreign markets that share similar population sizes as Vietnam this year. The company also aims to achieve a 10-15 percent year-on-year increase in terms of the number of subscribers by the end of 2018.

  • Equity gains see SK Telecom record good quarterly results

    Equity gains see SK Telecom record good quarterly results

    SK Telecom, Korea’s top mobile carrier, said Tuesday that its third quarter net profit rose 32.4 percent from a year earlier.

    Net income reached a record high of 1.04 trillion won ($910.4 million) in the July-September period, compared with a profit of 793 billion won for the same period the previous year, the company said in a regulatory filing.

    SK Telecom said shareholding gains from SK Hynix. gave a boost to its quarterly bottom line. SK Telecom holds a controlling 20.1 percent stake in the world’s second-biggest chipmaker by sales.

    SK Hynix’s third quarter net profit surged 53.6 percent on-year to 4.69 trillion won on record sales of 11.4 trillion won.

    Still, SK Telecom said its operating profit fell 22.5 percent on-year to 304.1 billion won in the third quarter, while sales dropped 5.77 percent to 4.18 trillion won over the cited period.

    Shares in SK Telecom fell 2.54 percent to 269,000 won.