MyEG 1Q net profit rises by 30% on higher contribution from new commercial services, concessions

MyEG 1Q net profit rises by 30% on higher contribution from new commercial services, concessions
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KUALA LUMPUR (May 31): MY EG Services Bhd's (MYEG) net profit for the first quarter ended March 31, 2021 (1QFY21) increased by 29.7% year-on-year (y-o-y) to RM76.29 million, from RM58.84 million.

Earnings per share rose to two sen, from 1.7 sen.

In a bourse filing, the e-government services company noted that its revenue increased by 40.8% y-o-y to RM171.46 million, from RM121.74 million in 1QFY20.

The group said the higher bottom line and top line earnings were due to higher contributions from its new concession services, namely the online renewal of motorcycle insurance and road tax (MIRT), as well as online renewal of Competent Driving License (CDL).

At the same time, higher contributions from new commercial services in the form of Covid-19 health screening, quarantine collection services under the MySafeTravel and MySafeQuarantine, as well as increased online sales of groceries through its "Nak Beli" online store, added to top and bottom lines.

It also saw an overall increase in online transaction volumes for its existing concession and commercial services, as more users opted to transact online due to the Covid-19 pandemic and higher contribution from its Cardbiz Group of companies, which is principally involved in the deployment of payment solutions and hardware and merchant acquiring services.

No dividends were declared during the quarter.

On a quarter-on-quarter basis, its net profit inched up by 1.02% from RM75.51 million, while its revenue increased by 14.39% from RM149.89 million in 4QFY20.

For its FY21, the group expects to continue introducing innovative services by leveraging on new technologies in Malaysia, as well as the countries in which it has a presence, to drive its organic growth for the financial year.

"The Covid-19 pandemic has adversely impacted economies around the world and Malaysia has not been spared. Although this pandemic is ongoing, we are optimistic that our business will remain resilient, while we remain vigilant for new opportunities. For instance, during these trying times, we continue to introduce innovative online services such as our Covid-19 health screening, as well as new concession services such as the online renewal of MIRT and online renewal of CDL for the convenience of Malaysians.

"Barring any unforeseen circumstances, the board is cautiously optimistic that the long-term outlook for MYEG remains positive, as we continue to introduce innovative services in Malaysia and the countries where we have regional presence," it said.

Shares in MYEG closed 1.03% or two sen lower at RM1.93 today, valuing it at RM7.09 billion. It saw 9.89 million shares done.

Lam Jian Wyn