VTech details revenue rise in 2016/17 interim results

Billy Langsworthy

By Billy Langsworthy

November 11th 2016 at 11:31AM
UPDATED November 11th 2016 at 12:02PM
VTech details revenue rise in 2016/17 interim results

"The increase was driven by the sales consolidation from recently acquired LeapFrog Enterprises, Inc and growth in contract manufacturing services."

VTech Holdings Limited's revenue for the six months ended September 30th 2016 rose by 5.9 per cent over the same period of the previous financial year to $982.9 million.

The firm has witnessed growth in North America (2.8 per cent to $474.4 million), Europe (10.4 per cent to $412.6 million) and Asia Pacific (17.1 per cent to $69.9 million) in the first six months of the financial year 2017.

"The first six months of the financial year 2017 saw an increase in Group revenue," said Allan Wong, chairman and group CEO of VTech Holdings Limited.

"The increase was driven by the sales consolidation from recently acquired LeapFrog Enterprises, Inc and growth in contract manufacturing services. This offset lower sales of telecommunication products. Profitability was lower largely because of one-off costs associated with the integration of LeapFrog."

In Europe, sales of standalone VTech products grew, led by the core infant, toddler and pre-school products. There were higher sales of Kidizoom camera and the Kidi line, while sales of the Toot-Toot family of products were stable and Kidizoom Action Cam saw sales decline.

Platform products also recorded growth and sales of children's educational tablets increased with the addition of LeapFrog branded tablets.