CEO Morning Brief

Pertama Digital to Continue Operating E-Jamin With Approval of Prime Minister's Department

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Publish date: Tue, 21 May 2024, 10:37 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (May 20): Pertama Digital Bhd (KL:PERTAMA) said it had been allowed to continue operating the digital court bail payment system known as e-Jamin by the government.

The approval from the Legal Affairs Division of the Prime Minister's Department at all applicable courts in Malaysia was received last Friday, the digital services firm said in an exchange filing on Monday.

“There will be no significant impact on the group's operations as well as revenue stream,” it said.

On May 16, Pertama disclosed that the Chief Registrar of the Federal Court had ordered the cessation of the e-Jamin system and reversion to the conventional bail process from May 19.

The company was also ordered to transfer all the bail funds in the system to the Prime Minister’s Consolidated Fund.

However, Pertama on Thursday said it was working towards obtaining approval from the relevant regulatory authorities to continue providing the services.

Pertama stressed that the cessation of e-Jamin will “significantly” affect its operations and revenue stream since e-Jamin has been a crucial component of the company’s business since its inception in January 2020.

Pertama just returned to the black in the fourth quarter ended Dec 31, 2023 (4QFY2023) — after six consecutive quarters of losses — with a net profit of RM11,000, compared to a net loss of RM39.98 million a year earlier. Revenue surged 40.59% to RM1.59 million from RM1.13 million, primarily driven by e-Jamin.

On Monday, shares of Pertama dropped to their one-year low of RM2.19 before rebounding. The counter turned positive following the announcement and closed at RM2.29 after 8.2 million shares changed hands.

Source: TheEdge - 21 May 2024

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