CTOS (5301) CTOS DIGITAL BERHAD net earnings increased 9.6pc to RM42.98mil for FY21

CTOS (5301)  CTOS DIGITAL BERHAD net earnings increased 9.6pc to RM42.98mil for FY21

In a filing to Bursa Malaysia today, the credit information and risk management provider said the higher net profit recorded for the period was contributed by the strong performance from both Malaysia and international operations.

KUALA LUMPUR: CTOS Digital Bhd's net profit increased 9.6 per cent to RM42.98 million during the financial year ended December 31, 2021 (FY21) from the RM39.19 million recorded in FY20.

In a filing to Bursa Malaysia today, the credit information and risk management provider said the higher net profit recorded for the period was contributed by the strong performance from both Malaysia and international operations.

Revenue grew 14.9 per cent to RM153.17 million from RM133.23 million.

CTOS Digital deputy group chief executive officer Eric Hamburger said the company had delivered a solid performance despite the extremely challenging economic landscape in 2021.

"While 2021 was a year of growing both organically and new businesses through synergistic acquisitions, 2022 would be the year of reaping the harvest of these initiatives," he said in a separate statement.

Hamburger said domestically, the company has witnessed a strong U-shape recovery in customer demand and activations in the fourth quarter (Q4) 2021 and expect the strong momentum to continue in 2022.

"We also expect new contributions from our strategic acquisitions, including the 49 per cent purchase of fintech player Juris Technologies Sdn Bhd (JurisTech), which is slated to be completed in Q1 2022 subject to shareholders approval," he added.

He said altogether, these plans are internally targeted to propel CTOS Digital's normalised net profit by 25 per cent in FY22.

"We are optimistic of our medium to long term outlook, as we build on our strong platform, expand into new verticals, and look for investment opportunities in Malaysia and the Asia Pacific region," he said.

For Q4, CTOS Digital's net profit eased 8.6 per cent to RM11.78 million from RM12.89 million, while revenue increased 12.5 per cent to RM38.79 million from RM34.47 million.

CTOS Digital has declared a third interim single-tier dividend of 0.33 sen per ordinary share in FY21, which will be paid on February 25, 2022.

The entitlement date for the dividend payment is on February 10, 2022.

Alongside the earlier-paid first interim single-tier dividend of 0.533 sen per ordinary share and second interim single-tier dividend of 0.32 sen, the company has declared 1.183 sen per share or RM26.0 million in total dividends to shareholders in respect of FY21, equivalent to 60.6 per cent of FY21 net profit.

https://www.nst.com.my/business/2022/01/764931/ctos-digital-net-earnings-increased-96pc-rm4298mil-fy21