MyEG posts another solid set of results

MyEg online office that opens at Immigration Department of Malaysia in Putrajaya. MOHD SAHAR MSNI/The Star

KUALA LUMPUR: My EG Services Bhd’s (MyEG) earnings for its second quarter (Q2) ended Dec 31, 2016, grew a strong 57% to RM47.6mil from a year earlier.

The electronic government services provider told Bursa Malaysia that the improved profit achieved on 40% higher revenue of RM88.7mil was due mainly to two factors.

These are higher transaction volumes from the online renewal of foreign workers’ permits and insurance (FWP) and foreign worker rehiring programme services, and an increase in revenue contribution from its motor vehicle trading-related services.

The company posted a 49.9% boost in earnings in the first six months of the financial year to RM88.1mil. Revenue advanced to RM167.3mil from RM124.2mil in the same period of 2015.

On its prospects for the full financial year ended June 30 (FY17), MyEG said while concession services continued to be its core business, non-concession-related services, such as the road safety diagnostic services, sale of prepaid top ups for Celcom mobile lines and provision of hostel accommodation to foreign workers, were expected to contribute to its growth for FY17.

“Barring any unforeseen circumstances, the directors of MyEG are cautiously optimistic that the results for FY17 will continue to be satisfactory as more Malaysians adopt online government services as a convenient and cheaper alternative to transact with the Government,” the company said.

Over the last five financial years, MyEG had seen double-digit earnings growth and profit margins annually, with the figures increasing each year. Its income climbed 91% in FY16, while net profit margin hit 50.6%.

The board declared a first interim dividend of 0.5 sen per share (2016: 0.5 sen) amounting to RM18.03mil (2016: RM12.02mil) for the current financial year ending June 30, 2017, payable on May 24.