- Stronger 9M 2018 PAT driven by higher earnings contribution across two core divisions
- Maiden contribution from telecommunications-related services in 3Q 2018
Kuala Lumpur, 19 November 2018 – Dagang NeXchange Berhad (“DNeX”) has delivered a commendable set of financial results for the third quarter ended 30 September 2018 (“3Q 2018”), and the nine months period ended 30 September 2018 (“9M 2018”).
Its 9M 2018 revenue rose 30 per cent to RM185.6 million from RM142.4 million a year ago, mainly attributed to higher revenue contribution from the IT & e-Services division, which jumped 53 per cent to RM150.7 million in 9M 2018.
This was driven by continued growth of the company’s business-to-business and business-to-Government services, progress billing from the submarine cable installation and repair project in Indonesia as well as the consolidation of post-acquisition results from Genaxis Group Sdn Bhd and its subsidiary company. IT & e-Services division contributed 81 per cent to its 9M 2018 revenue followed by the Energy division which represented the remaining 19 per cent.
Overall profit after tax (“PAT”) grew 13 per cent to RM48.1 million in 9M 2018 against RM42.4 million in 9M 2017, on the back of improved earnings performance across its two core divisions. In terms of profit before tax (“PBT”) contribution, the IT & e-Services division’s PBT increased 12 per cent to RM39.1 million as compared to RM35.0 million in 9M 2017.
PBT from Energy division, meanwhile, rose significantly by 28 per cent to RM14.4 million in 9M 2018 from RM11.3 million previously. The rise in profit was mainly driven by higher earnings contribution from DNeX’s associate company, Ping Petroleum Limited, which almost doubled to RM22.0 million in 9M 2018 from RM13.0 million in 9M 2017, on the back of stronger crude oil prices.
For 3Q 2018, DNeX recorded a 28 per cent growth in revenue to RM63.3 million as compared to RM49.5 million in the previous year’s corresponding quarter (“3Q 2017”). Profit after tax (“PAT”) stood lower at RM7.9 million as compared to RM15.7 million in 3Q 2017 due to higher manpower cost as well as expenses incurred for business development activities during the quarter, and one-off goodwill impairment of RM3.6 million.
Commenting on the company’s financial results, Executive Deputy Chairman of DNeX Datuk Samsul Husin said, “We are delighted to note that we continued to make good progress in strengthening our two core divisions throughout the nine months period.”
“We achieved yet another significant milestone as we successfully expanded our IT & e-Services business to include the maiden contribution from our telecommunications-related services in 3Q 2018,” he said.
He added that DNeX’s acquisition of Genaxis, which is aimed to expand and strengthen the company’s IT and e-Services business segment, namely accounting system and consultancy, has consistently showed encouraging results.