CTOS Digital Bhd posted a 13% increase in net profit to RM27.55 million for the third quarter ended Sept 30, 2024 (3QFY2024), from RM24.39 million a year ago on higher sales and contribution from associates.

KUALA LUMPUR (Nov 11): CTOS Digital Bhd’s (KL:CTOS) net profit gained 13% to RM27.55 million for the third quarter ended Sept 30, 2024 (3QFY2024), from RM24.39 million a year ago, thanks to higher sales and contribution from associates.

Its quarterly revenue reached an all-time high of RM79.81 million, up 20.1% from RM66.45 million in 3QFY2023, attributable to higher contribution from key segments — namely international, direct-to-consumer and commercial business, its bourse filing showed.

In tandem with the strong results, the group declared a higher third interim dividend per share of 0.84 sen, compared to the 0.64 sen declared a year ago. The latest payout raised its year-to-date dividend to 2.26 sen, versus 1.62 sen in the same period last year.

For the first nine months of 2024 (9MFY2024), CTOS made a net profit of RM73.88 million, up 19% from RM62.1 million a year ago, as cumulative revenue grew 21.1% to RM228.03 million from RM188.29 million.

CTOS said profit from its Malaysian operations grew 4.4% to RM76.64 million from RM73.43 million in 9MFY2023, driven by a 6.1% increase in revenue.

Its international operations, which comprise newly acquired entities in Indonesia and the Philippines, contributed total revenue of RM28.69 million and a profit of RM2.55 million.

In a separate statement, CTOS group chief executive officer Erick Hamburger said the group sees abundant opportunities ahead as it continues to implement strategies to deepen customer penetration and enhance average revenue per user (ARPU) across all segments.

“With a steadily expanding client base of more than 80 customers in our international portfolio, we are well-positioned to cross-sell and upsell our products across regional markets to scale up and further strengthen margins,” he noted.

CTOS also aspires to expand its regional footprint further and are actively evaluating inorganic opportunities for growth. “We are excited to capitalise on this momentum as we work to establish CTOS as the leading credit reporting agency in the region,” added Erick.

CTOS Digital shares dipped two sen or 1.7% to close at RM1.14 on Monday, giving the group a market capitalisation of RM2.63 billion. Year-to-date, the stock has retreated 19.1%.