CTOS Digital Berhad (CTOS) reported a solid quarterly performance in 3Q 2023, hitting a new record in both revenue and net profit.
The group said the revenue expanded to RM66.5 million, reflecting a growth of 26% YoY in comparison to RM52.8 million in 3Q 2022.
“This robust performance was underpinned by sustained growth across all three customer segments, key accounts, commercial and direct-to-consumer) and different types of services, leading the surge,” in a statement today (Oct 27).
CTOS said the group’s associate companies also continued to gain traction, with the share of profit from associates amounting to RM8.4 million for the quarter, marking a 42% YoY improvement.
“With higher revenue and contribution from associates, net profit for 3Q 2023 rose to RM24.4 million, compared to RM22.8 million in the same quarter of the previous year,” it said.
It said that normalised net profit for 3Q 2023 increased by 11% to RM29.3 million, up from RM26.4 million in 2Q 2023.
Normalised net profit added back components including costs related to acquisitions and incremental income tax expense based on the statutory tax rate of 24% for CTOS Data Systems.
CTOS executive director and group chief executive officer Erick Hamburger, said its performance this quarter was the highest since our listing in 2021, with YoY growth across its business segments and service offerings.
“With financial institutions and businesses embracing digital transformation, we are poised for an exciting journey of sustainable growth,” he said.
Recently, Erick said that it had collaborated with JurisTech in the digital money lending space and completed strategic acquisitions of two leading telco credit-scoring companies in Indonesia and the Philippines.
“This will enable us to establish a leading alternative data platform that aims to advance financial inclusion by harnessing data such as mobile phone usage, payment behaviour, and digital footprint to create a comprehensive credit risk profile for borrowers.
“This moves set the foundation for CTOS to establish a regional platform and fulfil our aspiration of becoming the leading credit reporting
agency in the Asean region.
Its wholly-owned major subsidiary, CTOS Data Systems Sdn Bhd (CDS), has received the approval from Ministry of Finance
Malaysia for a second five-year tax exemption extension from 9 November 2021 to 8 November 2026.
“With this approval, there will be a reversal of approximately RM27.8mil tax provision in the upcoming financial quarter, subject to finalisation of our tax computation,” Erick added.
CTOS also declared a third interim singletier dividend of 0.64 sen per ordinary share in respect of the three-month period ended 30 September 2023, which will be paid on 22 December 2023.
The total dividend payout to date amounts to RM37.5 million, representing a payout ratio of 60%.
