MyEG's 3Q earnings climb near 74% with more online renewals of foreign worker permits

by **Cals** Mon 30 May 2016, 23:25

MyEG's 3Q earnings climb near 74% with more online renewals of foreign worker permits

By Meena Lakshana / theedgemarkets.com | May 30, 2016 : 6:53 PM MYT

KUALA LUMPUR (May 30): MyEG Services Bhd (MyEG) saw its net profit rise 73.62% to RM33.11 million in the third quarter ended March 31, 2016 (3QFY16) from RM19.07 million a year ago, as revenue climbed near 80%.

Revenue rose to RM70.13 million from RM38.97 million a year ago. No dividend was declared for the quarter, its bourse filing today showed.

The improved financial performance was primarily due to higher transaction volumes from the online renewal of foreign workers' permits and insurance, and foreign worker rehiring programme services, as well as higher revenue contribution from its JPJ-related services.

The better earnings were also due to contributions from its newly acquired unit, Cardbiz Holding Sdn Bhd, and its group of companies.

However, it said the increase in profit and revenue for the quarter was partially offset by higher personnel related expenses and operating expenses, besides higher interest cost from a term loan it took to finance a newly acquired building.

For the cumulative nine-month period (9MFY16), MyEG saw its net profit more than double to RM91.92 million from RM45.2 million a year ago, while revenue jumped to RM194.36 million from RM96.46 million, due to the same reasons that caused the improvement in its quarterly earnings.
[size=16]MyEG shares closed five sen or 2.5% higher at RM2.05 today, with a market capitalisation of RM4.93 billion [/size]