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SNS Network Technology Records 12.1% Revenue Growth for Q2, Focused on Commercial Channel Expansion

Publish date: Tue, 26 Sep 2023, 06:03 PM

SNS Network Technology Records 12.1% Revenue Growth for Q2, Focused on Commercial Channel Expansion

Group Strengthens Focus on B2B and Commercial Channel Expansion, while scaling DaaS Solutions

IPOH, 26 SEPTEMBER 2023SNS Network Technology Berhad ("SNS" or the "Group"), an ICT products, services and solutions provider, is pleased to announce that the Group's revenue for the financial quarter ended 31 July 2023 has increased by 12.1%, from RM296.93 million to RM332.88 million, compared to the corresponding quarter of the previous year. This boost is primarily attributed to an uptick in sales of ICT products through the commercial channel.

Profit before tax (“PBT”) for the current financial quarter ended 31 July 2023 saw a rise of 15.3%, from RM10.32 million to RM11.90 million, compared to the immediate preceding financial quarter. Meanwhile, profit after tax (“PAT”) increased by 14.4%, from RM7.89 million to RM9.02 million. Both increases were mainly attributable to the growth in the Group’s revenue from the commercial channel and improved gross profit.

In terms of revenue segmentation for the financial quarter ended 31 July 2023, the bulk of the Group’s revenue of RM332.88 million was dominated by the sale of ICT products, accounting for RM328.63 million. Provision of device repair and related services, as well as broadband services, contributed an additional RM4.25 million. On a geographical basis, Malaysia continued to be the mainstay, generating RM321.35 million in revenue. Singapore contributed RM6.26 million and Hong King contributed RM0.45 million, while other markets —including Australia, Brunei, Indonesia, Maldives, and Vietnam—rounded off the remaining RM4.82 million.

Managing Director of SNS, Ko Yun Hung

Managing Director of SNS, Ko Yun Hung, said, "We are thrilled with the continuous growth, especially in the commercial channel, which signals strong business confidence in our ICT offerings."

"The ICT sector remains a strong pillar of both economic and social infrastructure. As businesses increasingly opt for flexibility and cost-efficiency through Device-as-a-Service (“DaaS”) subscriptions, we are focusing on expanding this service. This will serve as a catalyst in solidifying our existing customer relationships while attracting new clients”

Looking ahead, the Group remains optimistic about the prospects of the ICT industry, owing to a sustained demand for ICT products and a strong, expanding customer base. In line with these industry trends, the Group plans to leverage on government initiatives aimed at digital transformation and to support digital education in schools.

The Group has announced today, a second interim single-tier dividend of 0.25 sen per ordinary share amounting of RM4,031,949 in respect of financial year ending 31 January 2024 declared payable on 24 November 2023. This is noted to be the fourth dividend distribution from the Group since its listing in September 2022.

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