News

Telecom & Internet

Staff Reporter

, Singapore

Published:

13 years ago

Keppel T&T's margins are likely to stay depressed ahead of the opening of the new facilities in FY14-15

Keppel T&T margin slump could extend till FY14-15

Logistic segment margin looking especially weak.

According to CIMB's forecasts, Keppel T&T's margins "are likely to stay depressed ahead of the opening of the new facilities in FY14-15 as staff and building costs are incurred before any operating earnings can be generated."

"We believe the logistics segment’s margins will remain depressed for a longer period of time as the four new warehouses are of a larger scale and will take longer to build," it added.

But the data centre segment offers some relief; most of the staff for the Keppel Datahub 2 have already been hired and margins are likely to improve in 1H14 as the new facility starts generating income, according to CIMB.

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