PETALING JAYA: MyEG Services Bhd’s net profit for the financial quarter ended Sept 30, 2023 (Q3 FY2023) has decreased 20% year-on-year (y-o-y) to RM120 million from RM150.71 million.
The decrease in earnings was due to the one-off recognition of fair value gain amounting to RM61.89 million from the listing of MyEG’s investment in Agmo Holdings Bhd last year in Q3 FY2022.
“Without taking into consideration the one-off recognition of fair value gain, operating profit after tax increased by RM29.96 million (or 33.25%) which was attributable to the contribution from our Zetrix (blockchain) platform,” MyEG said in its local bourse filing today.
The group suffered a drop in net profit despite experiencing a 19% y-o-y rise in revenue to RM194.12 million in Q3 FY2023 from RM162.62 million.
The increase in revenue was due to contribution from newly launched services on its Zetrix blockchain platform and contribution from the sale of Zetrix tokens.
For the nine-month period ended Sept 30, 2023 (M9 FY2023), its net profit rose 4% y-o-y to RM337.49 million from RM323.97 million a year ago.
Revenue for M9 FY2023 increased 14% y-o-y to RM552.22 million from RM486.18 million.
Apart from contributions from its Zetrix platform and tokens, MyEG’s M9 FY2023 revenue growth was also driven by higher margin from existing services and an increase in foreign worker job matching service following the uplifting of migrant labour recruitment freeze.
Promising prospects
Moving forward, MyEG holds a cautiously optimistic view towards its outlook for the remainder of the financial year.
It 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 organic growth.
“With the 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,” the group said.
The group also plans to leverage on the integration between Zetrix and China’s national blockchain platform, Xing Huo, which will ease cross-border transactions and launch MyEG’s foray into the global market.
“Barring any unforeseen circumstances, the board is cautiously optimistic that the long-term outlook for MyEG remains positive as we continue to introduce innovative services in Malaysia as well as globally,” it concluded.
Last month, MyEG received a three-year contract extension from the road transport department to provide online services related to vehicle registration, driver and vehicle licensing, and payment of summons.
It was also granted a two-year extension of its immigration-related services contract two weeks earlier.
At market close today, MyEG’s share price was up one sen or 1.26% at 80 sen, giving it a market capitalisation of RM6.05 billion.