AWANTEC Pivots to Cloud to Drive Revenue and Core Operating Profits

AwanBiru Technology has reported its third quarter (Q3) results for the financial year ended 30 June 2022 (FY2022) to Bursa Malaysia. It is reported that the Group is profitable for a second consecutive quarter reflecting the continued positive responses from clients towards its cloud offerings as well as improvements on its Talent segment.

It recorded a lower revenue of RM13.3 mil and profit before tax (PBT) of RM0.3 mil for Q3 FY 2022 compared to RM28.5 mil and RM1.0 mil respectively in Q3 FY 2021.

The decrease is mainly attributable to the expiry of the Master Licensing Agreement but has been compensated primarily by further gains in their Cloud and talent business. 

For the 9 months cumulative Year To Date (YTD),  the Group’s Software & Services segment recorded a higher PBT of RM12.4 million in YTD Q3 FY2022 compared to RM11.3 million in YTD Q3 FY2021 despite the revenue dipping from RM96.5 million in YTD Q3 FY2021 to RM70.1 million in YTD Q3 FY2022. This reflected the improved margins from cloud services as well as additional sales incentives.

The Group’s Talent segment showed increase in revenue from RM5.4 million in YTD Q3 FY2021 to RM8.1 million in YTD Q3 FY2022 resulting in a higher PBT of RM0.4 million in YTD Q3 FY2022 as compared to a loss before taxation of RM1.8 million in YTD Q3 FY2021. The growth in the Talent segment was mainly boosted by the Selangor Kerjaya Program.

“We remain confident that since our pivot to the cloud, our year on year revenue and core operating profits will continue to show improvements as business is picking up momentum in both our Software & Services and Talent segments.”, said CEO, Rezal Rahman.

Several notable developments include a recent Cloud Framework Agreement (CFA) signed between MAMPU, GOOGLE CLOUD and Awantec on 13 May 2022, as Awantec has been appointed as the Google exclusive Managed Service Provider (MSP) to the Government to support government agencies with Google Cloud Platform Products such as AI and Machine Learning, Compute, Storage, and Workspace, and Services such as Data Analytics, Cloud Migration and Cloud-based Systems Integration.

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