- Full year revenue increased 44 per cent to RM293.5 million
- IT & eServices segment continues as core revenue driver, grows 76 per cent
Kuala Lumpur, 27 February 2019 – Dagang NeXchange Berhad (“DNeX”) has announced considerable progress in its results for financial year ended 31 December 2018 (“FY 2018”).
In FY 2018, the Group recorded RM293.5 million in revenue, an increase of 44 per cent from RM203.9 million in the financial year ended 31 December 2017 (“FY 2017”). DNeX’s FY 2018 profit after tax (“PAT”) was lower by six per cent to RM51.9 million from the PAT of RM55.2 million in FY 2017.
The information technology (“IT”) and eServices division continues to serve as the core revenue driver of the Group, and saw a 76 per cent growth due to the consolidation of post acquisition results from Genaxis Group, progress billings for work done on submarine cable installation and repair project in Indonesia as well as progress billings from other business units in the IT and eServices division.
A final dividend of 0.5 sen per ordinary share totalling RM8.8 million was recommended by DNeX’s Board of Directors for FY 2018 subject to shareholders’ approval at the forthcoming annual general meeting.
“We have made progress in strengthening our two divisions namely IT and e-Services as well as Energy despite challenges in domestic and global markets. Moving forward, the Group’s main focus is on executing planned initiatives,” said Datuk Samsul Husin, Executive Deputy Chairman of DNeX.
Business development initiatives will be on exploring opportunities that leverage on existing competencies, and business components, he said.
In addition, he said the Group will continue to grow services under its Dagang Net Digital Platform initiative to provide end-to-end, innovative services to help customers be more efficient.
He said the Group is also exploring options to monetise its investment in energy assets namely a 10 per cent stake in a 54MW power plant in Bangladesh, and a 30 per cent investment in Ping Petroleum Limited (“Ping”). An immediate divestment plan is the disposal of our stake in the 54MW power plant in Bangladesh.”
Book value of the Group’s investment in the Bangladesh power plant and Ping stood at RM4.6 million and RM200 million, respectively as at 31 December 2018. In 2016, DNeX completed acquisition of 30 per cent interest of Ping at a cost of US$10 million.
The Group is committed to undertake measures to effectively manage its resources by prudent spending and being cost-efficient to improve profitability, added Datuk Samsul Husin.
For the fourth quarter ended 31 December 2018 (“4Q 2018”), revenue stood at RM107.9 million while PAT stood at RM3.8 million as compared to RM61.5 million in revenue and RM12.8 million in PAT in the fourth quarter ended 31 December 2017 (“4Q 2017”).