KUALA LUMPUR: CTOS Digital Bhd's net profit increase of 7.1 per cent to RM24.39 million for the third quarter (Q3) ended September 30, 2023 (FY23) compared to RM22.76 million in Q3 of 2022 on the back of higher revenue.
Revenue rose 26 per cent year-on-year (YoY) to RM66.45 million for the quarter versus RM52.85 million a year ago, underpinned by sustained growth across all three customer segments and all types of services, with digital solutions and comprehensive portfolio review and analytics leading the surge.
CTOS Digital's associate companies continued to gain traction, with the share of profit from associates amounting to RM8.4 million for the quarter, marking a 42 per cent YoY improvement.
For the cumulative nine-month period, net profit grew to RM62.1 million versus RM57.71 million in the same period last year, while revenue increased by 33 per cent to RM188.29 million from RM142.04 million.
CTOS Digital's executive director and group chief executive officer Erick Hamburger said the company's performance for the quarter was the highest since its listing in 2021, with YoY growth evident across all business segments and service offerings.
"With financial institutions and businesses embracing digital transformation, we are poised for an exciting journey of sustainable growth.
"Synergies with associate companies are gathering momentum as we accelerate strategic initiatives, seizing new opportunities to expand our market presence.
"Capitalising on combined expertise in credit data and digital onboarding, collaborative endeavours with JurisTech in the digital money lending space have yielded substantial progress as we continue to onboard new clients in this space," he said in a statement.
He added that the company had completed strategic acquisitions of two leading telco credit-scoring companies in Indonesia and the Philippines, marking entry into these markets.
"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, enabling lenders to make more informed and responsible lending decisions.
"These pivotal moves set the foundation for CTOS Digital to establish a regional platform and fulfil our aspiration of becoming the leading credit reporting agency in the Asean region," said Hamburger.
He noted that CTOS Digital's wholly-owned subsidiary, CTOS Data Systems Sdn Bhd (CDS), has received approval from the Finance Ministry for a second five-year tax exemption extension from November 9, 2021, to November 8, 2026.
With this approval, there will be a reversal of approximately RM27.8 million tax provision in the upcoming financial quarter, said Hamburger.
CTOS Digital declared a third interim single-tier dividend of 64 sen per ordinary share, which will be paid on December 22.
The total dividend payout to date amounted to RM37.5 million, representing a payout ratio of 60 per cent.