Kuala Lumpur, Malaysia – CTOS Digital Berhad (CTOS Digital or the Group) reported a 66% year-on-year jump in net profit to RM71.4 million for the financial year ended 31 December 2022 (FY2022) from RM43.1 million previously. Revenue for FY2022 rose 27% to RM194.8 million versus RM153.2 million a year ago, underpinned by solid organic and inorganic growth. All key business units (Key Accounts, Commercial and Direct-to-Consumer) registered strong double-digit revenue growth while the share of profits from associates increased by 212%.
Revenue in the fourth quarter ended 31 December 2022 (4Q22) increased 36% to RM52.7 million from RM38.8 million, while 4Q22 PATAMI climbed 15% to RM13.7 million compared to RM11.9 million in the previous corresponding quarter of 4Q21.
CTOS Digital’s Executive Director and Group Chief Executive Officer, Erick Hamburger, said: “We achieved stellar growth in FY2022 and performed well despite challenging external headwinds. Significant progress was made in executing our strategy and we achieved another record performance. Our normalised 1 PATAMI of RM85.1 million exceeded the management’s target of RM75-80m for FY2022. CTOS Digital’s business has proven to be relevant and resilient - the adoption of credit risk management and innovative digital solutions is more paramount than ever as everyone seeks to make more informed decisions during challenging circumstances and automate their processes to drive business growth.
We are starting 2023 from a position of strength with well-defined strategies which will allow us to capture the potential of new verticals and addressable markets, especially with the rise of the digital economy. In addition, our team endeavours to increase wallet share via upselling and cross-selling opportunities within business units and across related companies, including extracting synergies from our highly complementary acquisitions. With this, we are internally targeting another strong year in 2023 with normalised PATAMI between RM100-105m.
We are also elated with our inclusion into the FTSE4GOOD Index last December, as ESG is core to our business operations. CTOS Digital secured a 4-star ESG rating, placing us among the top 25% of public listed companies in the FTSE Bursa Malaysia EMAS Index. This recognition will further drive us to strive for greater positive impacts and long-term sustainability, which will in turn, make the shareholder value more sustainable and holistic,” he added.
CTOS Digital continues to reward shareholders and declared a fourth interim single- tier dividend of 0.36 sen per ordinary share, which will be paid on 15 March 2023. The entitlement date for the dividend payment is 21 February 2023. With this, the total dividend given out by the Group in FY2022 including the 4th interim dividend is 1.875 sen per share or RM43.3 million, equivalent to 61% of FY2022 PATAMI.
1 Normalised PATAMI added back components including costs related to acquisitions, incremental income tax expense based on the statutory tax rate of 24% prior to renewal of pioneer status incentives and write back of prior year tax on approval of transition to the MSC Malaysia Status Services Incentive for the period from 1/7/2021 to 8/11/2021
