S i2i reports 2Q loss due to acquisitions

S i2i today announced revenue of US$267.5 million ($345.2 million) for the three months ended September 30, 2011 (2Q FY2012) which represented a four-fold increase from US$65.7 million for the corresponding three months the previous year (2Q FY2011).

The significant increase in revenue was attributed to the acquisitions of the Newtel Group in December 2010, the CSL entities in April 2011, and the Affinity Group in May 2011.

For 2Q FY2012, the group’s sales of handsets and related products crossed two million handsets. Revenue contribution from the group’s Mobility segment was 91.3% in 2Q FY2012, compared to 86.5% in 1Q FY2012, with Technology segment contributing the rest of the revenue.

However, loss after tax attributable to shareholders stood at US$18 million in 2Q FY2012 due to the acquisitions, almost all cost components had gone up, mainly direct services fees and cost of goods which sold at US$236.9 million in 2Q FY2012 compared to US$51.9 million in 2Q FY2011.

Marketing expenses also increased from US$0.3 million in 2Q FY2011 to US$10 million in 2Q FY2012 as the group incurred further costs related to marketing and channel marketing to enhance branding while personnel costs also increased from US$6.2 million in 2Q FY2011 to US$12.5 million in 2Q FY2012.

The group also recorded a foreign exchange loss of US$6.8 million in 2Q FY2012 compared to a gain of US$4.0 million in 2Q FY2011. More than 75% of the foreign exchange loss in 2Q FY2012 was unrealised currency loss due to the appreciation of the US Dollar, primarily against the Singapore Dollar, Malaysia Ringgit and Indonesia Rupiah.