MyEG Services posts 4Q net profit of RM60.42m


  • Corporate News
  • Thursday, 28 Nov 2019

MyEG said the contribution of revenue and net profit for the quarter and 12 months were mainly due to concession related services such as Immigration and Road Transport Department related and ancillary services.

KUALA LUMPUR: E-government services provider MyEG Services Bhd posted net profit of RM60.42mil in the fourth quarter ended Sept 30,2019 on the back of RM119.14mil in revenue.

It announced on Thursday the increase in net profit of 3.20% amounting to RM1.87mil from the third quarter's RM58.20mil was primarily due to gains from foreign worker recruitment and placement related services and cost reduction in administrative expenses in 4Q. Its earnings per share were 1.7 sen.

For the 12-month period, its net profit was RM234.69mil on revenue of RM476.24mil.

MyEG said the contribution of revenue and net profit for the quarter and 12 months were mainly due to concession related services such as Immigration and Road Transport Department related and ancillary services.

Other contributers were commercial services such as motor vehicle trading related services, financing services, sale of tax monitoring system, foreign worker recruitment and placement related services.

MyEG said there was also contribution from Cardbiz Group which principally is involved in the deployment of payment solutions and hardware and merchant acquiring services. There was also gain on disposal of other investment.

It said that it would continue to introduce innovative services leveraging on new technology to drive its growth for FYE2019.

“We are also expanding our regional presence in Asia with the recent introduction of new joint ventures and services in the Philippines, Bangladesh and Indonesia.

“We are bringing our technology and expertise to these countries and hope to introduce innovative services which will enhance the efficiency in these new markets and allow us to tap on the continuous growth of transactions where the population in these countries are becoming more tech savvy, ” it said.

MyEG said it board of directors was cautiously optimistic that these are the new markets which potentially migh contribute to its organic growth.

It also said the board would work closely with the government to continue rolling out new e-government services whilst maintaining the service level of the current services which will continue to benefit the Malaysian public, consistent with the government’s objective.

“In view of abolishment of the Goods and Services Tax (GST) regime in September 2018, the board wishes to clarify that necessary impairments were made, in FY2018, on the investments as well as capital expenditure incurred on the tax monitoring system which were supposed to be rolled out under the GST regime.

“However, the board is confident that there will be opportunities available to the company to roll out similar systems in other countries which we are present and to re-deploy the system built and assets purchased (which the value had been impaired) in these countries, ” it said.


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