CHALLENGER TECHNOLOGIES LIMITED
(Incorporated in the Republic of Singapore on 14 January 1984)
(Registration No. 198400182K)
NEWS RELEASE - FOR IMMEDIATE RELEASE
Results for period ended 30 September 2013 (“9M2013”)
Net Profit grew by 10% on the back of 18% increase in
revenue
9M2013
9M2012 Change 3Q2013 3Q2012 Change
Revenue
S$’M
291.3
S$’M
246.4
Profit before tax
15.3
Profit after tax
Earnings per share
Dividend per share
+18%
S$’M
98.4
S$’M
88.6
+11%
13.8
+11%
4.8
5.0
-4%
12.7
11.5
+10%
4.1
4.1
--
3.64
cents
1.1
cents
3.29
cents
1.0
Cents
+11%
1.17
cents
1.16
cents
+1%
+10%
--
--
--
As at
30/09/13
NAV/share
16.11
cents
As at
Change
31/12/12
14.79
cents
+9%
Highlights:

Group revenue and net profit increased by 18% or $44.9M and 10% or 1.2M
respectively, mainly driven by growth in retail operations in Singapore.
Page 1 of 3
Singapore, 8 November 2013 – SGX Mainboard-listed Challenger Technologies
Limited (“Challenger” or the “Group”), the largest IT products and services provider in
Singapore, today announced its results for the nine months and third quarter ended
30 September 2013.
Group revenue increased by $44.9 million or 18% to $291.3 million for the nine
months ended 30 September 2013, mainly contributed by higher sales from
Singapore’s retail business by about $48.1 million or 21%, offset by lower sales from
Malaysia’s retail business by about $3.0 million or 20%.
Higher sales from Singapore’s retail business can be attributed to the opening of new
stores in the first nine months of this year, as well as better same store sales. On the
other hand, declining same store sales and the closure of one store during this period
contributed to lower sales in Malaysia’s retail business.
Net profit increased by 10% to $12.7 million for the nine months ended 30 September
2013. This is mainly due to higher gross profit from Singapore retail operations, partly
offset by higher staff costs, rental and other operating expenses.
Compared with 3Q2012, revenue for 3Q2013 increased by $9.8 million or 11%. This
is mainly due to an increase in Singapore’s retail revenue by about $11.7 million or
14%, offset by decrease in Malaysia’s retail revenue by $1.3 million or 28%. Net
profit remained unchanged at about $4.1 million in the third quarter of the year
compared to last year’s third quarter.
To date in Singapore, the Group has a total of 34 stores comprising one flagship
Challenger megastore, 20 Challenger superstores, and 13 small format stores. In
Malaysia, the Group operates one flagship Challenger megastore and two
Challenger superstores.
We have converted one of our Challenger Mini stores in Funan to Musica concept
store in August 2013. Musica concept store focuses on music related products like
speakers, headsets, tablets and other accessories. We will open a new Musica
concept store in Westgate in December 2013.
Page 2 of 3
In addition, we will be converting one of our Challenger Mini stores in Funan to
Valore concept store and opening three new Valore concept stores in AMK Hub,
Clementi Mall and Westgate in December 2013. Valore concept stores carry our
Valore branded, trendy and lifestyle products.
Mr. Loo Leong Thye, the Chief Executive of the Company, said, “We grew our
revenue and profit for the nine months despite the tough retail environment. We are
excited to go into Q4 which is traditionally a good quarter for retailers like us.”
To further increase sales and profits, the management has targeted to open the
Valore concept stores in November and December of 2013. “In addition to the eight
new Challenger stores opened in Singapore this year, in the next two months, we will
be opening another three new Valore concept stores which carry mainly our Valore
brand products,” said Mr Loo.
In order to reward shareholders who have given strong support over the years, the
Company intends to increase dividend payment if the Group has sufficient cash flow.
“The Board of Directors has approved a plan that aims to pay at least 50% of the
profit after tax as dividends to shareholders for the next three years” said Mr Loo.
About Challenger Technologies Limited
Incorporated in 1984, listed on the SGX-Sesdaq in January 2004 and upgraded to
the SGX Mainboard in August 2007, Challenger is the leading IT products and
services provider in Singapore and Malaysia with extensive network of strategically
located retail outlets. Today, Challenger has approximately 476,000 members
globally, who regularly patronise its stores.
For further information, please contact:
Mr Tan Wee Ko
Executive Director & Chief Financial Officer
Tel: (65) 6318-9800
Email: wktan@challenger.sg
Page 3 of 3