CTOS Digital Berhad saw its profit attributable to shareholders increase by 62.3% YoY to RM12.5 million for the three months ended 31 March 2022 (Q1 2022). This was on the back of revenue amounting to RM42.7 million in Q1 2022, 12.4% higher as compared to RM38 million in the same period in 2021.
The group adds the jump was bolstered by improved performance from all three customer segments (Key Accounts, Commercial and Direct-to-Consumer).
Share of profits of associates increased by 45.8% to RM2.4 million, contributed by Juris Technologies Sdn Bhd (JurisTech) which was acquired in March 2022, and higher profit from Business Online Public Company Limited, the leading commercial credit information and risk management provider in Thailand. CTOS Digital currently holds 49% stake in JurisTech and 24.83% stake in BOL.
CTOS Digital Deputy Group Chief Executive Officer Eric Hamburger said: “We have delivered strong financial results in Q1 2022 despite the lingering impacts from the pandemic. Momentum is expected to ramp up as the year progresses. The recently conducted RAM-CTOS Business Confidence Index (BCI) Survey points to positive domestic business sentiments with the re-opening of the economy. We are also seeing increased activities with our subscribers pulling 17% more business credit reports since the start of 2022 compared to the same period last year.
Eric is confident of delivering solid performance in 2022 supported by its BAU growth, expansion into new verticals, and reaping the harvest from its value accretive acquisitions. He added that CTOS Digital is still in an acquisition mode and will continue to look for opportunities within the ASEAN region as well as within Malaysia to create additional value. The company has a war chest of RM42.4 million and low net gearing, which gives it the flexibility to fund more acquisitions.
Moving ahead, the group is expanding its capabilities across three areas data analytics, fraud, and ID, as well as end-to-end digital platform solutions to cater to the digital economy. The CEO who will assume the Group CEO post with Dennis Martin retiring sees tremendous opportunities for expansion and growth in Malaysia and the ASEAN region.
CTOS Digital declared a first interim single-tier dividend of 0.325 sen per ordinary share in respect of the three months financial period ending 31 March 2022, which will be paid on 10 June 2022. The total payout amounts to RM7.5 million, representing a payout ratio of 60.2%. The entitlement date for the dividend payment is on 13 May 2022.
