KUALA LUMPUR (Nov 29): My EG Services Bhd (MyEG)'s net profit for the first financial quarter ended Sept 30, 2016 (1QFY17), rose 42.2% to RM40.5 million or 1.7 sen per share from RM28.5 million or 1.2 sen per share a year earlier.
Revenue increased 29.4% to RM78.6 million from RM60.7 million, it said in a bourse filing today.
The group attributed the increase in earnings and revenue to higher transaction volumes from online renewal of foreign workers' permits and insurance (FWP), and foreign worker re-hiring programme services.
Net profit also rose because of increase in revenue contribution from Road Transport Department (JPJ)-related services and contribution from its newly-acquired subsidiary Cardbiz Holding Sdn Bhd and group of companies.
However, MyEG added that the increase was offset by higher personnel related expenses to support the growth in FWP and foreign worker re-hiring programme services.
"(It was also offset by) higher interest cost from the term loan to finance MyEG's newly-acquired building," it added.
Going forward, MyEG expects continued growth in volume of its existing services, especially the online renewal of foreign workers' insurance and foreign worker services, to contribute to its revenue and profit after tax for the financial year ending June 30, 2017 (FY17).
"While concession services continue to be our core business, non-concession related services, such as the road safety diagnostic services, sale of prepaid top ups for Celcom mobile lines and provision of hostel accommodation to foreign workers, are expected to contribute to our growth for FY17," it said.
Barring unforeseen circumstances, MyEG is cautiously optimistic that its FY17 results would continue to be satisfactory as more Malaysians adopt online government transaction services.
"MyEG will continue to roll out new services that will enhance the lives of Malaysians while meeting the objectives of the government to increase online payments as an efficient method to transact," it added.
MyEG's share price closed four sen or 1.78% lower at RM2.21 today, valuing the company at RM5.3 billion.