NEWS

VTech announces annual financial results

Published on: 18th May 2016

The results for the financial year ended 31st March 2016 show lower revenue and profit.

Vtech480Group revenue decreased by 1.2% to $1,856.5m, due to lower revenue in North America and Europe, which offset higher revenue in Asia Pacific and other regions.

“VTech experienced a challenging environment in the financial year 2016, resulting in a decrease in revenue and profitability”, said Mr Allan Wong, chairman and group CEO of Vtech. “The strong US dollar depressed the Group’s reported revenue, while the weak economy in Europe affected sales in that region. In addition, the data breach due to the cyber-attack on VTech’s Learning Lodge in November 2015 added to the decline in sales and profitability”.

Profit attributable to shareholders of the company decreased by 8.4% to $181.4m, whilst gross margin declined from 32.5% to 31.4%. Final dividend of 25.0 cents per ordinary share, leaving a full-year dividend of 42.0 cents per ordinary share.

The financial year 2016 results were also affected by the data breach on VTech’s databases in November 2015, which as a result the Learning Lodge was offline for several weeks during the key holiday period.

The acquisition of LeapFrog is expected to make a negative contribution to the financial year in 2017, however is expected to pave the way to growth and result in an immediate sales contribution.

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