CTOS Digital Bhd (CTOS Digital) reported a record performance for the financial year ended 31 December 2023 (FY2023) with a 65% year-on-year surge in net profit to RM118.2 million compared to RM71.7 million in the previous year.
In a statement, the group said its revenue for FY2023 saw a notable 34% increase to RM261.4 million, surpassing the RM194.8 million recorded a year ago.
“This was backed by double-digit growth across all three customer segments, key accounts, commercial and direct-to-consumer.
“The group also witnessed growing revenue contribution from all its services, with digital solutions and comprehensive portfolio review and analytics leading the surge.
“The international operations comprising the newly acquired subsidiaries Prime Analytics in Indonesia and Finscore in the Philippines demonstrated positive momentum, contributing RM6 million to group revenue,” it said today (Jan 31).
In the fourth quarter ended 31 December 2023 (4Q23), net profit showed a substantial 301% jump to RM56.2 million compared to RM14 million in the same period last year.
“This was driven by higher revenue and a tax write-back following the receipt of approval from the Finance Ministry on the extension of the five-year tax incentive for CTOS Data Systems Sdn Bhd up to 8 November 2026.
“Meanwhile, revenue increased 39% to RM73.2 million from RM52.7 million in the same quarter last year,” the group added.
CTOS Digital executive director and group chief executive officer Erick Hamburger said the group delivered another sterling financial performance, fuelled by surging demand for data-driven insights and digitalisation.
“Our financial achievements for FY2023 are a significant milestone, with net profit surpassing the RM100 million mark for the first time.
“We foresee sustained strong performance, propelled by the heightened adoption of our innovative digital solutions and profound analytical insights.
“The accelerating digital transformation initiatives within the financial services industry, coupled with increasing financial literacy among consumers, set the foundation for CTOS’s ongoing and sustainable growth,” he said.
Hamburger said looking beyond Malaysia, the group’s recent strategic acquisitions of PT Prime Analytics and Finscore in Indonesia and the Philippines, respectively, present substantial potential with positive financial contributions already apparent.
“We are enthusiastic about blending our expertise with theirs to create a top-tier portfolio of credit-centric solutions for the Asean region, aligning with our vision to be leading credit reporting agency in ASEAN and positioning Malaysia as the hub of excellence for credit reporting.
“We expect 2024 to be another dynamic and exciting year. We will continue optimising wallet share, seizing opportunities within the thriving digital economy, and fostering synergies across all companies within our group,” he added.
CTOS Digital declared a fourth interim single-tier dividend of 1.706 sen per ordinary share for the fourth quarter ended 31 December 2023, which will be paid on 27 March 2024.
This translates to a payout ratio of 70% for the quarter. With this, the total dividend payout in respect of FY 2023 is 3.3 sen per share amounting to RM76.9 million.
