CTOS Digital (CTOS) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 revenue of RM304.9 million, up 17% year-over-year, with normalised PATAMI of RM107.5 million, up 4% year-over-year.

• International operations contributed RM39.2 million in revenue for FY2024, surging 558% year-over-year, reflecting acquisitions in Indonesia and the Philippines.

• Associates' contribution rose 17% year-over-year to RM30.6 million, driven by higher input from JurisTech.

• Malaysia segment revenue increased 4% to RM265.6 million, with segment profit up 6% to RM103.6 million.

• Normalised PATAMI (excluding one-offs) increased 3.6% to RM107.5 million.

Financial highlights

• 4Q 2024 revenue reached RM76.8 million, up 5% year-over-year, with normalised PATAMI of RM32.1 million, up 14% year-over-year.

• FY2024 gross profit was RM221.1 million, up 10% year-over-year, and EBITDA margin improved sequentially.

• Dividend payout for FY2024 totaled RM75.1 million, or 3.25 sen per share, representing a 71% payout ratio.

• Basic/diluted EPS for FY2024 was 4.6 sen, down from 5.1 sen in FY2023.

• Cash and cash equivalents at year-end were RM17.3 million, up from RM15.7 million.

Outlook and guidance

• FY2025 internal management targets revised to RM342–362 million revenue (12–19% YoY growth), EBITDA of RM146–156 million (5–12% YoY growth), and normalised PATAMI of RM118–123 million (10–15% YoY growth).

• Positive outlook for 2025, driven by strategic expansion, digital solutions adoption, and regional growth in Indonesia and the Philippines.

• Focus on growing Key Accounts, Commercial, and Direct-to-Consumer segments, with targeted financial literacy and digital marketing initiatives.