CTOS closes FY2022 with a 66% jump in y-o-y net profit, pays 0.36 sen dividend

KUALA LUMPUR (Jan 31): CTOS Digital Bhd’s net profit rose 13.1% to RM13.7 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), compared to the RM11.9 million it earned in the same period in 4QFY2021, driven by stronger demand for its products and services.

The credit reporting group’s revenue for the quarter expanded 36% to RM 52.7 million from RM38.8 million from a year ago, thanks to stronger contribution from its CTOS Data Systems Reports, digital solutions and comprehensive portfolio review, and growth in new CTOS Credit Manager subscribers, its bourse filing on Tuesday (Jan 31) showed.

Earnings per share for the quarter improved to 0.6 sen from 0.5 sen in 4QFY2021.

For the full FY2022, CTOS reported a 66% jump in net profit to RM71.4 million from FY2021’s RM43.1 million, as revenue climbed 27% to RM194.8 million from RM153.2 million a year ago, underpinned by solid organic and inorganic growths.

All key business units — key accounts, commercial and direct-to-consumer — registered strong double-digit revenue growths, while its share of profits from associates increased by 212%.

CTOS declared a fourth interim dividend of 0.36 sen per share, to be paid on March 15. This brings its FY2022 dividend to 1.87 sen per share or RM43.3 million.

“CTOS’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,” said CTOS’s executive director and group CEO Erick Hamburger in a statement.

The group expects its subsidiaries and business segments to continue with its growth momentum into 2023, on the back of continued recovery of the Malaysian and regional economies.

“Growth in the key accounts segment is expected to be driven by continued adoption of our leading digital solutions and analytical insights, and organic growth in the BAU (business-as-usual) business.

“The commercial segment should see growth through new account activations, as well as increasing consumption of products and solutions as SMEs look to onboard and assess creditworthiness of customers more seamlessly,” CTOS said.

CTOS plans to expand its direct-to-consumer business through financial literacy programmes and partnerships targeting the estimated 15 million credit active consumers in Malaysia.

Shares of CTOS closed 0.65% or one sen higher at RM1.54 on Tuesday, giving the group a market value of RM3.65 billion.