MyEG net profit for 1Q rises 11.4% to RM84.63mil

KUALA LUMPUR: My E.G. Services Bhd net profit for the first quarter ended March 31, 2022 (Q1 2022) rose 11.4 per cent to RM84.63 million from RM76.29 million in the same quarter last year due to higher contribution from quarantine collection services.

However, the company registered a lower revenue of RM161.77 million for the quarter from RM171.46 million a year ago.

In a filing to Bursa Malaysia today, the company said the higher profit by RM8.72 million was primarily attributable to higher contribution from COVID-19 quarantine collection services under MySafeTravel and MySafeQuarantine as the government closed down its quarantine centres and allowed private quarantine arrangements to be made.

The company also saw higher transaction volumes for its existing concession services which resulted in higher contribution from ancillary services such as fulfilment of security documents and online renewal of insurance, it said,

As for revenue, it said the decrease of approximately RM9.69 million or 5.7 per cent was mainly due to the change of reservation arrangement and recognised referral fee for every private quarantine arrangement.

On the prospect for the financial year ending Dec 31, 2022, the company said it is cautiously optimistic that the long-term outlook for MYEG remained positive as it continues to introduce innovative services in Malaysia as well as globally.

MYEG is expected to continue introducing innovative services by leveraging on new technologies in Malaysia as well as the countries which it had presence in, to drive the organic growth this year.

"With the COVID-19 restriction uplifted, MYEG is now embarking into blockchain technology by introducing a Layer 1 blockchain platform named Zetrix in collaboration with partners.

"At the same time, we are integrating the platform with China’s national blockchain platform, namely Xing Huo to enable us to start introducing commercial services which can be used globally,” it added. - Bernama