Latest News | Startek Q4 2020 Net Loss Widens to USD 7.6 Million
Get latest articles and stories on Latest News at LatestLY. Business process management firm Startek, which has half of its employees based in India, on Tuesday reported widening of its net loss to USD 7.6 million in the fourth quarter ended December 2020 on account of the COVID-19 pandemic.
New Delhi, Mar 16 (PTI) Business process management firm Startek, which has half of its employees based in India, on Tuesday reported widening of its net loss to USD 7.6 million in the fourth quarter ended December 2020 on account of the COVID-19 pandemic.
The company had recorded net loss of USD 5.3 million in the same period a year ago.
"Net loss in the fourth quarter of 2020 included an approximate USD 13.2 million goodwill impairment from COVID-19 related forecasted declines in the Company's business in India, South Africa, and Australia and in Argentina owing primarily to the devaluation of the local currency," the company said in a statement.
The net revenue of Startek increased by 1.6 per cent to USD 174.5 million during the reported quarter from USD 171.6 million in the corresponding quarter of 2019.
For full year ended December 31, 2020, Startek registered widening of loss to USD 39 million from USD 15 million a year ago.
The net annual revenue of the company declined by 2.6 per cent to USD 640.2 million in 2020 from USD 657.9 million in 2019.
Startek has over 18,000 employees in India.
In February, Startek subsidiary CSP Alpha Holdings Pte Ltd successfully completed a debt refinancing with a newly secured USD 185 million senior debt facility, comprising a USD 165 million term loan and a USD 20 million revolving credit facility.
"The term loan bears a moratorium on principal repayment for 21 months and will amortize quarterly thereafter, beginning in November 2022. The proceeds of this loan was used to repay in full the previous senior debt facility and to also make the strategic investment in CSS," Startek said.
On February 25, 2021, Startek announced a strategic investment in CSS Corp, comprising a USD 30 million contribution in a limited partnership managed by Startek's majority shareholder Capital Square Partners, to acquire both an indirect beneficial interest of approximately 26 per cent in CSS, as well as an option to acquire a controlling stake, the company said.
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