The Resource Group Reports Higher Revenues, Major Decline in Losses

The Resource Group (TRG) Pakistan announced its financial results for half year ended (1HFY19) ended December 31st, 2018.

The company reported a loss of Rs. 105.32 from a profit of Rs. 13.98 million in the same period last year.

In TRG’s standalone performance, the company recognized revenue of Rs. 118.3 million as compared with Rs. 115 million mainly as a return on loan to an indirect subsidiary, whereas it incurred expenses of Rs. 7.8 million for administrative and other expenses and exchange loss was Rs. 214.1 million. As a result, TRG Pakistan Limited incurred a net loss (on a standalone basis) of Rs. 105.3 million for the six months ended December 31, 2018.

On a standalone basis, the company recognized a loss per share of Re. 0.19 as compared with earnings per share of Rs. 0.03.

Similarly, on consolidated bases, the company reported a loss of Rs. 1.33 billion compared to a loss of Rs. 2.52 billion in the same period last year. The consolidated losses have dropped by 47.22% mainly due to improved revenues and depreciation of Rupee against US Dollar.

The revenues of the company reached Rs. 33.78 billion, representing a 43.5% increase as compared with Rs. 23.53 billion over the same period last year.

Developments

TRG’s revenue growth trajectory during this first half was due to IBEX Holdings, the intermediate vehicle for their contact center operating subsidiaries, namely, IBEX Global, Digital Globe Services, eTelequote, and iSky, where revenues increased to Rs. 28,099 million, representing a 37.6% growth over the same period in fiscal 2018.

The improvement in margins was even more significant, with EBITDA increasing from Rs. 884 million to Rs. 3,364 million during these six months. This increase was a result of better operational efficiencies at IBEX Global, as well as significant topline expansion, on the back of a successful Annual Enrolment Period at eTelequote.

The company reported that its eTelequote business continues to gain scale and realize the benefits of recent investments. With the closing of a $75 million debt facility, eTelequote has adequate working capital to double in size in the next 12 to 18 months.

Whereas their software subsidiary Afiniti, continues to execute the plan and its top line grew by almost 50% over the same period last year and is currently approaching an annualized revenue run rate of $100 million.



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