Vivocom falls into the red in Q4 on lower revenue and provisions

PETALING JAYA: Vivocom International Holdings Bhd fell into the red in the fourth quarter ended December 31, 2017, reporting a net loss of RM2.63 million from a net profit of RM821,000 a year ago, due to lower revenue and the provision of doubtful debts amounting to RM5.92 million from its telecommunications segment.
Revenue for the quarter declined by 27.59% to RM33.31 million as compared with the RM46.00 million reported in the preceding year’s corresponding quarter, predominantly due to the aggressive roll-out of projects under its construction segment to clear the backlogs in 2016 as compared to 2017, and slower progress in billing.
“For the current financial year to date, the group has been awarded numerous projects for the aluminum and construction segment, which will keep the group busy for the next two to three years. In view of these positive developments and the group’s strong order book, barring any unforeseen circumstances, the board is optimistic of achieving a satisfactory performance for the next financial year ending December 31, 2018,” its board of directors said on the prospects.
For the full year, its net profit slumped by 72.92% to RM14.59 million against the RM53.90 million reported in the previous financial year.
Revenue for the financial year under review, more than halved to RM181.73 million from RM365.02 million.
Vivocom's share price fell 5.26% to 9 sen with some 7.33 million shares done.