Reach Ten’s profit after tax (PAT) surged 52.04% year-on-year to RM26.79 million in 1H26, despite revenue declining 6.31% to RM51.68 million, boosted by a RM10.3 million unrealised fair value gain on its SpaceX investment.
The gain followed SpaceX’s listing, which provided an observable market price and triggered a remeasurement of the investment under MFRS 9 Financial Instruments.
Revenue from Reach Ten’s satellite-based communication networks and services segment fell 18.03% to RM28.8 million following the completion of a major project, while telecommunications infrastructure and managed services revenue slipped 1.35% to RM7.29 million.
The softer performance was partly offset by a 10.21% increase in fibre optic revenue to RM13.93 million, alongside RM1.66 million in dividend income.
Profitability strengthened despite the lower top line, with gross profit margin improving to 51.58% from 46.88%, while net profit margin climbed to 51.84% from 31.93%.
Managing Director Leo Chin said the results reflected the resilience of Reach Ten’s core connectivity businesses, with encouraging contributions from fibre optic and telecommunications infrastructure and managed services.
Looking ahead, the group expects newly secured satellite contracts and further fibre network expansion to support recurring revenue and demand from residential, enterprise and government customers.
