CEO Morning Brief

Catcha Digital Partners With KJ, Shahril Hamdan to Launch KS Lagi

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Publish date: Tue, 25 Jun 2024, 10:58 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 24): Digital media company Catcha Digital Bhd (KL:CATCHA) said on Monday that it will co-found KS Lagi, a new digital media business scheduled to launch in the second half of this year.

The company has inked a joint venture agreement with the founders of Keluar Sekejap Sdn Bhd, Khairy Jamaluddin (KJ) and Shahril Hamdan. KJ is the former health minister while Shahril is the former information chief of United Malays National Organisation (Umno).

In a statement, Catcha Digital said the company intends to assume the commercial and business responsibilities for the existing Keluar Sekejap’s business and KS Lagi. Additionally, KS Lagi will create and distribute new media content across Catcha Digital’s existing network that reaches about 20 million Malaysians every month.

Keluar Sekejap claims to be a fast-growing media brand centred around thought-provoking conversations and has achieved tremendous success in the digital media space since its launch in 2023. It has amassed over 1.4 million subscribers and followers across its social media platforms, and over 39 million views on YouTube.

The crew of KS Lagi

"We are thrilled to partner with KJ and Shahril to co-found KS Lagi," said Catcha Digital chairman Patrick Grove.

“Across Catcha Digital and Keluar Sekejap’s platform we are already reaching the vast majority of Malaysians every month, and we see our audience yearning for a new approach to content and we will be a key part of this.

This collaboration aligns with our mission to build a leading profitable digital group in Southeast Asia, as we continue to pursue strategic partnerships, investments, and acquisitions that are accretive to our earnings per share,” Grove added.

In March last year, Catcha Digital completed its acquisition of a 100% stake in iMedia Sdn Bhd, which specialises in providing digital media advertising solutions to clients in Malaysia.

About four months later, Bursa Malaysia Securities removed the company from its cash company status under Rule 8.03 and Guidance Note 2 (GN2) of the ACE Market Listing Requirements.

On the financial front, Catcha Digital recorded its fourth consecutive profitable quarter. Prior to this, the company has been in straight net losses since 1QFY2019.

The company’s net profit more than doubled to RM1.47 million for the first quarter ended March 31, 2024 (1QFY2024), as compared to RM399,000 in the previous year’s corresponding quarter.

Shares of Catcha Digital declined 1.5 sen or 3.4% to close at 43 sen on Monday’s closing bell, giving it a market capitalisation of RM149.71 million.

Source: TheEdge - 25 Jun 2024

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