KUALA LUMPUR (Nov 19): Dagang Nexchange Bhd has posted a 55.4% fall in net profit for the third quarter ended Sept 30, 2018 to RM6.65 million from RM14.91 million a year ago.

DNex said this comes from lower profit before tax margin of 18% (38% in 2017), mainly due to increasing manpower cost and expenses incurred for business development activities and one- off goodwill impairment of RM3.6 million.

Quarterly revenue, however, was up 27.9% to RM63.31 million, from RM49.5 million previously, the group said in a filing with Bursa Malaysia.

The group attributed the increase mainly to progress billing for the work done on a submarine cable installation and repair project in Indonesia, and new recurring incomes from post-acquisition results from Genaxis Group.

For the cumulative nine-month period, the group recorded net profit of RM35.04 million, up 16.4% from RM41.92 million in the previous corresponding period.

Revenue for the Jan-Sept period jumped 30.3% to RM185.6 million, from RM142.44 million in the previous corresponding period.

The higher revenue was mainly due to the consolidation of post-acquisition results from Genaxis Group and progress billing for the work done on the submarine cable installation and repair project in Indonesia, in addition to continued growth in the group’s business-to-business and business-to-government (B2G) businesses.

DNex said the group will continue to build its business by exploring opportunities that leverage on building blocks of its existing IT & eServices and energy businesses, while focusing on the implementation of planned new initiatives.

Barring any unforeseen circumstances, the group expects to deliver positive results for 2018.

DNex’s share price was last traded at 37 sen for a market capitalisation of RM650.47 million.