MyEG’s 4Q net profit slips as revenue hit by cessation of Covid-19 health screening

KUALA LUMPUR (Feb 27): MyEG Services Bhd’s net profit decreased 7.25% to RM74.73 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM80.58 million a year earlier, as the e-government service provider's revenue was affected following the government's lifting of health screening and quarantine requirements.

Quarterly revenue declined 29.61% to RM165 million from RM234.42 million in 4QFY2021, amid the cessation of the revenue contribution from Covid-19 health screening and quarantine, and an impairment in investment in digital solutions company Agmo Holdings Bhd as a result of mark-to-market practice.

MyEG said operating profit after tax rose to RM91.25 million from RM82.05 million due to the resumption of full operations of the group's e-service centres located nationwide, higher contribution from the foreign worker job matching service and contribution from the sale of Zetrix tokens.

The group declared a final dividend of 1.17 sen per share, bringing the total dividend payout for the year to 1.42 sen, compared with 1.28 sen in FY2021.

For the full year, MyEG’s net profit grew 26.17% to RM398.7 million from RM316 million in FY2021, driven by a one-off recognition of fair value gain in investment as a result from the listing of its investment in Agmo Holdings as well as an increase in revenue from existing concession and commercial services.

Full-year revenue fell 10.1% to RM651.18 million from RM724.41 million due to lower demand for quarantine services.

Looking ahead, MyEG expects to continue introducing innovative services by leveraging on new technologies, specifically blockchain or Web 3.0, in Malaysia as well as globally, to drive its organic growth for FY2023.

“With its Layer 1 blockchain platform namely Zetrix coming online, there is a huge potential for MyEG to commercialise innovative services as Web 3.0 becomes widely adopted. Furthermore, Zetrix has also been integrated with China’s national blockchain platform, namely 'Xing Huo' which will allow ease of cross border trade to take place, and it will be the group’s foray into the global market,” the group added.

MyEG’s share price closed down 1.5 sen or 2.04% at 72 sen on Monday (Feb 27), valuing the group at RM5.35 billion. The counter has fallen 16.28% year to date.