SBS Nexus Bhd saw its profitability normalise sharply in the second quarter of 2026 (2Q26), with profit after tax (PAT) rising to RM2.8 million from RM0.4 million in 1Q26 as one-off listing costs faded and its core branding and marketing operations delivered stronger underlying performance.
Revenue for 2Q26 came in at RM12.9 million compared to RM13.9 million in 1Q26, but SBS Nexus Managing Director Wong Chun Mun said the stronger bottom line provided a clearer picture of the company’s operating performance following its January listing.
“Our company profitability has normalised to achieve around RM2.8 million PAT compared to 1Q26 of around RM0.4 million, and the improved financial performance is better reflected in the actual underlying performance of our branding and marketing business rather than being distorted by one-off, non-recurring listing expenses in the immediate preceding quarter,” Wong told BusinessToday in an exclusive email interview.
SBS Nexus incurred approximately RM2.4 million in listing expenses during 1Q26.
First-Half Revenue Climbs As Margins Improve
For the six months ended June 30 (1H26), SBS Nexus recorded revenue of RM26.8 million, up RM5 million or about 23% from RM21.8 million a year earlier, driven mainly by stronger contributions from its Digital Branding Solutions business.
Wong shared that the segment remained the company’s largest revenue contributor in 2Q26, accounting for 69.8% of total revenue.
More significantly, profitability improved alongside the revenue growth as the company recorded a gross profit margin of 40.5% for 1H26 compared to 35.4% a year earlier.
Wong attributed the margin expansion to tighter cost management and a deliberate move to reduce dependence on external resources by building stronger capabilities internally.
“The improvement in profit margin was mainly due to better cost control and lower reliance on third-party resources as we began to hire more qualified and experienced personnel to enhance our manpower,” he said.
Reported PAT for 1H26 stood at RM3.2 million. Excluding the RM2.4 million in one-off listing expenses, Wong said adjusted PAT would have reached approximately RM5.6 million compared to RM4.7 million in 1H25.
That translates into an adjusted PAT margin of around 21%, broadly holding up against the 21.6% recorded a year earlier.
Advertising Demand Defies External Uncertainty
Wong said the 1H26 performance also pointed to resilience in advertising and marketing expenditure among SBS Nexus’ predominantly Malaysian client base, despite concerns that heightened geopolitical tensions could dampen corporate spending.
“The strong business performance achieved by our company in 1H26 indicated that advertising and marketing spending by our Malaysia-centric clients has not been significantly affected by the outbreak of the US-Iran conflict, as per general industry concerns,” he said.
He added that promotional activity surrounding Visit Malaysia 2026 had also proved more resilient than initially anticipated.
“The promotional activities in relation to Visit Malaysia Year 2026 turned out to be more resilient and performed better than earlier expectations,” Wong said.
MyUsahawan Push Gains Early Traction
Beyond its existing client base, Wong highlighted that SBS Nexus is also seeking a larger share of the Malay enterprise market through its recently launched MyUsahawan Media platform, with Wong pointing to early commercial traction.
The company recently secured United Asiapac Energy Bhd as one of its Bumiputera corporate clients ahead of the latter’s planned ACE Market listing.
According to Wong, SBS Nexus was engaged to develop United Asiapac’s corporate website and video, undertake marketing roadshows targeting potential business-to-business customers in East Malaysia and support its IPO prospectus launch event held in Kuala Lumpur in July.
“All these achievements demonstrate that our penetration into the Malay enterprise market has received a good initial response,” he said.
AI Adoption Targets Higher Productivity
Meanwhile, Wong also shared that SBS Nexus is incorporating artificial intelligence (AI) tools into its operations as it seeks to improve efficiency and scalability.
“We have begun deploying AI across content generation, data analytics, campaign effectiveness assessment and market trend analysis, allowing it to automate selected labour-intensive processes and sharpen project execution.
“However, the adoption would remain measured, with human oversight retained to safeguard the quality, accuracy and relevance of its output,” Wong emphasised as he highlighted that the initiatives form part of the company’s post-listing expansion strategy where since the company’s listing on Jan 20, SBS Nexus has begun deploying IPO proceeds towards its growth plans, including leasing additional office space near its Bandar Sri Damansara headquarters and strengthening its workforce.
In hindsight, despite external uncertainties, Wong stressed that the board remains positive on the company’s prospects for the remainder of FY26, supported by resilient marketing demand, improving operating efficiency, and further expansion of its service offerings and customer base.
