Hong Kong — VTech Holdings today reported higher revenue and profit for the six-month period ending Sept. 30, citing growth of its electronic learning products (ELPs) segment in North America and Europe.
Revenue for the six months increased by 2.1 percent over the same period last year, to $876.1 million. Growth in contract manufacturing services (CMS) as well as higher revenue from telecommunication products and ELPs in Asia Pacific also contributed to the increase, the company said.
Profit increased by 3.1 percent to $91.2 million for the six months. VTech attributed higher revenue and a modest improvement in operating profit margin for the gain.
Revenue in North America increased by 1.8 percent to $439 million in the first half. The increase was mainly due to higher revenue from ELPs and CMS, which offset lower revenue from telecommunication products. North America remains the largest market for the company, accounting for 50.1 percent of group revenue, VTech said.
ELP revenue in North America rose by 26 percent to $145.4 million, with growth driven primarily by sales of the InnoTab and InnoTab 2, VTech's first- and second-generation educational tablets.
"I am pleased to report that the group managed to grow its top line in the first half of the financial year 2013, despite weak economic conditions in our major markets. Profit was modestly higher as margin stabilized," said Allan Wong, chairman and group CEO of VTech Holdings.