PETALING JAYA: CTOS Digital Bhd reported a 65% year-on-year surge in net profit to a record RM118.2 million for the financial year ended Dec 31, 2023 (FY23) compared with RM71.7 million in the previous year.
The group’s revenue for FY23 increased 34% to RM261.4 million, surpassing the RM194.8 million recorded a year prior. 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.
International operations comprising newly acquired subsidiaries Prime Analytics in Indonesia and Finscore in the Philippines demonstrated positive momentum, contributing RM6 million to group revenue.
In the fourth quarter ended Dec 31, 2023 (Q4’23), revenue increased 39% to RM73.2 million from RM52.7 million. Net profit showed a 301% leap to RM56.2 million from RM14 million in the previous year’s corresponding quarter. This was driven by higher revenue and a tax write-back following the receipt of approval from the Ministry of Finance on the extension of the five-year tax incentive for CTOS Data Systems Sdn Bhd up to Nov 8 2026.
CTOS Digital executive director and group CEO Erick Hamburger, said: “We delivered another sterling financial performance, fuelled by surging demand for data-driven insights and digitalisation.”
He added that their financial achievements for FY23 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.
Looking beyond Malaysia, Hamburger said CTOS Digital’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 of establishing CTOS as the 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, marked by the escalating adoption of digital solutions among both existing and potential customers. 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 in respect of the three-month period ended Dec 31, 2023, which will be paid on March 27. This translates to a payout ratio of 70% for the quarter. With this, the total dividend payout in respect of FY23 is 3.3 sen per share amounting to RM76.9 million.
