KUALA LUMPUR (April 22): CTOS Digital Bhd’s net profit soared 62.3% to RM12.48 million for its first quarter ended March 31, 2022 (1QFY22) from RM7.69 million last year, as it recorded stronger revenue on improved performance across all business segments and an increase in share of profits of associates.
Revenue rose 12.4% to RM42.7 million, from RM38 million. Share of profits of associates grew 45.8% to RM2.4 million, contributed by CTOS' 49% stake in Juris Technologies acquired in March, and higher profit from Business Online Public Company Ltd, a Thailand-based commercial credit information and risk management provider in which CTOS Digital holds 24.83%.
The group's earnings per share (EPS) rose to 0.6 sen, from 0.4 sen. CTOS keeps to its 60% dividend payout ratio by declaring a first interim dividend of 0.325 sen per share that will be paid out on June 10, 2022.
Compared to its preceding quarter ended Dec 31, 2021 (4QFY21), CTOS’ net profit rose 5.89% to RM11.78 million, while revenue climbed 10% from RM38.79 million.
The group had delivered a strong set of financial results in 1QFY22 despite the lingering impact from the pandemic, and expects the momentum to ramp up as the year progresses on positive domestic sentiment amid the reopening of the economy, said CTOS deputy group chief executive officer (CEO) Erick Hamburger.
Hamburger also noted that CTOS Digital has been seeing increased activities, with its subscribers pulling 17% more business credit reports since the start of 2022 compared to the same period last year.
On prospects, Hamburger said CTOS is confident of delivering a solid performance in 2022, supported by BAU growth, expansion into new verticals and reaping the harvest from its value accretive acquisitions.
“We are taking the industry to the next level by expanding our capabilities across three areas on data analytics, fraud and ID, as well as end-to-end digital platform solutions to cater to the digital economy. We see tremendous opportunities for expansion and growth in Malaysia and the ASEAN region, with its large addressable markets, rapid digitalisation and increased economic optimism forming a conducive backdrop,” Hamburger said.
Hamburger also highlighted that the group is still in an acquisition mode, with the group's strong cash position of RM42.4 million and low net gearing, and will continue to look for opportunities in Malaysia, as well as within ASEAN.
Hamburger to take over top job on May 1
CTOS’ board also announced that Hamburger will take over the post of group CEO from May 1, on the retirement of Dennis Martin from the job on April 30.
Martin, who joined CTOS in 2017, will continue to serve on CTOS’ board as a non-independent non-executive vice chairman, a day after his official retirement on May 1, 2022.
On Friday (April 22)'s market close, CTOS shares slipped three sen or 1.94% to close at RM1.52, valuing the credit reporting agency at RM3.51 billion. Year to date, CTOS shares had retreated 18.28% or 34 sen from RM1.86.