NeraTel posts $2.8m net loss in FY2024

This is due to weaker revenue, market headwinds, and an impairment loss on assets under construction in a foreign subsidiary.

Nera Telecommunications Ltd (NeraTel) reported a net loss of $2.8m for FY2024, down by 51% from the $5.7m net profit recorded in the previous year.

The company attributed the decline to weaker revenue, market headwinds, and an impairment loss on assets under construction in a foreign subsidiary.

Total revenue for the year also fell 30.7% to $98.2m, down from $141.7m in FY2023. The drop was largely due to economic challenges, geopolitical tensions, and reduced contributions from the Service Provider (SP) and GTU divisions.

The SP division saw revenue decline to $62.6m (from $71.m), whilst the GTU division suffered a significant drop to $16.6m (from $53.4m).

The Enterprise (ENT) division, however, showed resilience, growing 10.8% to $19.1m, mainly driven by rising demand for cybersecurity services in the banking sector across Singapore and Indonesia.

Meanwhile, the firm maintained a strong balance sheet with $14.3m in cash and fixed deposits. Gross profit margins also saw a 2.8 percentage point increase, even though total gross profit dropped to $24.4m from $31.2m in the prior year.