CTOS Digital (CTOS) Q1 2025 earnings summary

Executive summary

• Revenue grew 6.3% year-over-year to RM76.1 million in 1Q 2025, led by Direct-to-Consumer, Malaysia, and International segments.

• Interim GCEO transition effective 1 May 2025, with Kevin Loh appointed as Executive Director.

• Associates' contribution increased 54% YoY, with JurisTech up 63% YoY due to a strong order book.

• Group-wide cost rationalisation underway, including right-sizing and non-recurring expenses.

• Segment profit for Malaysia dropped 29.3% YoY, while International segment profit rose 109% on a 21.1% revenue increase.

Financial highlights

• Revenue reached RM76.1 million, up 6.3% YoY; gross profit rose 2% YoY to RM53.4 million.

• PATAMI declined 31% YoY to RM14.4 million, mainly due to one-off costs and higher expenses.

• Normalised PATAMI was RM14.8 million, down 30.7% YoY.

• Profit before tax: RM14.5 million, down 34.7% YoY.

• Basic/diluted EPS: 0.6 sen (Q1 2025) vs 0.9 sen (Q1 2024).

Outlook and guidance

• Growth opportunities remain strong in Malaysia, driven by demand for advanced credit analysis.

• International segment progressing with client onboarding in Philippines, Indonesia, and Singapore.

• Continued product innovation and cost optimisation expected over the next two quarters.

• FY2025 internal revenue target set at RM342–362 million (12–19% growth), EBITDA at RM146–156 million (5–12% growth), and normalised PATAMI at RM118–123 million (10–15% growth).

• International segment expected to contribute positively, with focus on ASEAN market leadership.