KUALA LUMPUR: Reach Ten Holdings Bhd
’s net profit nearly doubled to RM18.6mil in the second quarter ended June 30, 2026 (2Q26), from RM9.4mil a year earlier, mainly boosted by a fair value gain on its SpaceX investment.
Quarterly revenue rose 2.3% to RM27.4mil from RM26.8mil, supported by higher contributions from its telecommunications infrastructure and managed services and fibre optic businesses.
Earnings per share rose to 1.86 sen from 0.94 sen.
“The sharp rise in PAT was mainly driven by a RM10.30mil unrealised fair value gain on Reach Ten's SpaceX investment, after the launch's listing provided an observable market price and triggered remeasurement under MFRS 9 Financial Instruments,” the Sarawak-based telecommunications service provider said in a statement.
Revenue from its telecommunications infrastructure and managed services segment jumped 50% to RM5.22mil, while the fibre optic segment grew 14.9% to RM7.39mil.
However, its satellite-based communication networks and services segment saw revenue fall 17.6% to RM13.91mil following the completion of a major project.
As at June 30, Reach Ten remained in a net cash position, with cash and bank balances of RM8.39mil, fixed deposits with licensed banks of RM5.58mil and short-term investments of RM143.57mil.
The group’s total borrowings stood at RM3.35mil as at June 30, while net assets per ordinary share increased to RM0.23 from RM0.22 as at Dec 31, 2025.
In the first half, Reach Ten’s net profit jumped 52% to RM26.8mil from RM17.6mil, despite revenue falling 6.3% to RM51.7mil.
Managing director Leo Chin said the group remained positive on the digital connectivity sector, supported by continued digitalisation and investments in broadband and digital infrastructure.
He said newly secured satellite contracts were expected to provide recurring revenue, while the group would continue expanding its fibre network to meet demand for high-speed broadband services.
“Going forward, we remain focused on strengthening our recurring revenue base and expanding our connectivity infrastructure to capture new growth opportunities,” he said.
Reach Ten said it remained optimistic about its prospects for FY26.
