- IT and eServices division serves as primary revenue contributor, accounts for 83 per cent of total revenue
- Continues improving operational efficiency via cost optimisation programme
Kuala Lumpur, 21 May 2019 – Dagang NeXchange Berhad (“DNeX”) has announced its results for the quarter ended 31 March 2019 (“1Q FY2019”).
In 1Q FY2019, DNeX registered RM68.9 million in revenue from RM71.1 million in the first quarter ended 31 March 2018 (“1Q FY2018”) with the information technology (“IT”) and eServices division remaining as the primary revenue contributor to the Group, representing 83 per cent of total revenue.
The Group’s Trade Facilitation and e-Commerce business reported lower trade traffic volume in line with the regional economic slowdown while lesser revenue was recognised from the Integrated Government Financial & Management System (“iGFMAS”) project, which was near completion.
Its System Integration & Consultancy business recorded higher revenue of five per cent, contributed mainly by progress billings for the work done on submarine cable installation and repair project in Indonesia.
Profit after tax (“PAT”) in 1Q FY2019 stood at RM13.9 million from RM28.7 million in 1Q FY2018, affected by one-off accounting adjustments made in 1Q FY2018 for the iGFMAS project costs that were over provided in prior years.
The Group’s Trade Facilitation and e-Commerce maintained a commendable profit before tax (“PBT”) level of RM7.4 million albeit a small decrease of 7.5 per cent from RM8.0 million in 1Q 2018.
Its System Integration & Consultancy business remains profitable with PBT of RM3.1 million while the Group’s Energy division recorded an improvement of 68 per cent in PBT for the current year quarter as compared to the corresponding quarter last year.
As a result of higher crude oil prices, the Group’s share of result of associate, Ping Petroleum Limited, which is involved in Upstream Exploration and Production increased to RM7.9 million from RM6.1 million in the corresponding quarter last year.
“In the beginning of 2019, we faced several challenges from the regional front, and these challenges are affecting economies across Asia. Nevertheless, we remain steadfast in executing our planned initiatives. Moving forward, we are focused on exploring opportunities that leverage on existing competencies, and business components namely in the IT and eServices segment under the Dagang Net Digital Platform initiative to provide end-to-end, innovative services to help customers be more efficient,” said Datuk Samsul Husin, Executive Deputy Chairman of DNeX.
He said these opportunities include those in the public sector where the Government has started opening tender of new projects, and DNeX will be putting in efforts to secure these projects.
The Group will also continue to pursue Group-wide operational cost optimisation programme to drive improvements in operational efficiency and ensure earnings sustainability, he added.