CTOS Digital Bhd reported a 32% year-on-year jump in normalizedPATAMI to RM60.1 million for the financial year ended 31 December 2021 (FY2021) from RM45.5 million previously, as it powered through a challenging COVID-impacted year.
The multiple months of lockdown throughout FY2021 did not deter CTOS Digital’s revenue, which rose 15% to RM153.2 million compared to RM133.2 million previously, propelled by healthy growth from all segments across Key Accounts, Commercial and Direct-to-Consumer divisions. Reported PATAMI climbed 9.7% to RM43.0 million in FY2021 versus RM39.2 million a year ago.
CTOS Digital Deputy Group Chief Executive Officer Eric Hamburger said: “We have certainly delivered an exceptionally strong performance in spite of the extremely challenging economic landscape in 2021. While 2021 was a year of growing both organically and new businesses through synergistic acquisitions, 2022 would be the year of reaping the harvest of these initiatives.”
“Domestically, we have witnessed a strong U-shape recovery in customer demand and activations in 4Q21 and expect the strong momentum to continue in 2022. We also expect new contributions from our strategic acquisitions, including the 49% purchase of fintech player Juris Technologies Sdn Bhd (JurisTech), which is slated to be completed in the first quarter of 2022 subject to shareholders approval.”
“Altogether, these plans are internally targeted to propel CTOS Digital’s normalised PATAMI by approximately 25% in FY2022. We are optimistic of our medium to long-term outlook, as we build on our strong platform, expand into new verticals, and look for investment opportunities in Malaysia and the Asia Pacific region,” he concluded.
Revenue in the fourth quarter ended 31 December 2021 (4Q21) increased 12.5% to RM38.8 million from RM34.5 million despite the 6-week CCRIS suspension.
4Q21 PATAMI stood at RM11.8 million compared to RM12.9 million in the previous corresponding quarter of 4Q20, as the Group prudently noted a higher effective tax rate of 14.4% in 4Q21 versus 2.8% in 4Q20, pending approvals for the extension of a second 5-year tax incentive period under MSC Pioneer Certificate. The Group also incurred higher operating expenses largely in staff-related costs, and one-off professional fees in relation to the proposed JurisTech acquisition in the quarter.
[1] Normalized PATAMI added back components including interest expense on bank borrowings, unrealized foreign exchange losses on USD borrowings and income tax expense based on higher estimated effective tax rate of 15.1% prior to renewal of pioneer status incentives
