PChome revenue plummets – Taipei Times

LOSS OF BUSINESS:
Easing of restrictions and summer weather boosted outdoor products and air conditioners, but that was not enough to salvage a dramatic drop in sales

  • By Chen Cheng-hui / Staff Reporter

PChome Online Inc (網路家庭) consolidated revenue reached NT$3.86 billion ($129.6 million) last month, down 1.2% from the previous month and 9.93% from a year earlier, the e-commerce company said in a regulatory filing yesterday.

The figure reflects the company’s sales performance across all of its business units, including business-to-consumer e-commerce, online marketplace and fintech, he said, without providing a detailed revenue breakdown for last month.

The easing of COVID-19 restrictions in Taiwan has led to an increase in sports and outdoor activities, which has boosted online sales of picnic and camping goods, sports shoes and clothing, the company said.

Photo: ANC

Rising health awareness during the COVID-19 pandemic has also supported online health food sales, he added.

Ahead of last month’s summer break, sales of board games and gaming devices, as well as Apple Inc products, posted double-digit percentage growth from the previous month, the company said.

Sales of electric fans and air conditioners have also increased significantly as people want to stay cool in the summer, PChome said.

Revenue for the first six months of this year totaled NT$22.89 billion, down 1.44 percent from the same period last year, the company said. This compares to a 0.49% annual increase in sales in the first five months.

The drop in revenue came when PChome CEO Kevin Tsai (蔡凱文) resigned his position and seat on the company’s board of directors on Monday last week effective immediately, citing career plans, a the company said in a regulatory filing at the time.

Chairman Jan Hung-tze (詹宏志) is to serve as interim CEO before the company’s board appoints a new CEO, according to the filing.

Tsai’s resignation was not without cause. While PChome recorded revenue of NT$48.58 billion last year, up 10.7% from 2020, its net profit fell 61.5% year-on-year to NT$97.44 million, with earnings per share dropping from NT$2.16 to NT$0.84.

Analysts linked the poor performance to PChome’s slowness to respond to increased competition in the local e-commerce market and changing business environment.

The company’s dire streak continued into the first quarter of this year, when it posted net losses of NT$32 million, or losses per share of NT$0.25, prompting an outcry from shareholders on June 22. Jan then pledged to cut his salary to zero and halve the CEO’s salary if the company’s bottom line did not improve by the end of this year.

While e-commerce remains the company’s core business, accounting for around 99% of its total sales, PChome has in recent years branched out into other businesses to diversify its revenue streams, such as mobile payment, “buy now, pay later” and third. electronic party payment services.

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