MyEG’s 2Q profit more than doubles

by **Cals** Tue 01 Mar 2016, 18:30

MyEG’s 2Q profit more than doubles

By Sangeetha Amarthalingam / The Edge Financial Daily | March 1, 2016 : 9:57 AM MYT

This article first appeared in The Edge Financial Daily, on March 1, 2016.

KUALA LUMPUR: My EG Services Bhd (MyEG)’s net profit more than doubled to RM30.3 million or 2.5 sen per share in the second financial quarter ended Dec 31, 2015 (2QFY16), from RM14.09 million or 1.2 sen per share a year ago, on higher revenue contributions from its Road Transport Department-related services.

Higher transaction volumes from its online renewal of foreign workers’ permit and insurance, foreign worker-related services, as well as contributions from its newly acquired unit Cardbiz Holding Sdn Bhd also boosted its latest quarterly performance.

Revenue soared 113.3% to RM63.49 million from RM29.76 million in 2QFY15.

It also declared a first interim dividend of 0.5 sen per share, totalling RM12.02 million, for the financial year ending June 30, 2016, payable on May 24.

For the first half (1HFY16), net profit grew 125.1% to RM58.8 million or 4.9 sen per share from RM26.13 million or 2.2 sen a year ago, while revenue came in 116.1% higher at RM124.2 million from RM57.49 million in 1HFY15.

Looking forward, MyEG expects continued volume growth for its services, such as online renewal of foreign workers’ insurance, to contribute to the group’s revenue and net profit for FY16.

Barring unforeseen circumstances, it is cautiously optimistic that its FY16 results would continue to be satisfactory, as more Malaysians adopt online government services as a convenient and cheaper alternative to transact with the government.