KUALA LUMPUR (Nov 20): MyEG Services Bhd (KL:MYEG) posted its highest-ever quarterly net profit of RM195.05 million in the third quarter ended Sept 30, 2024 (3QFY2024), a 62.55% increase from RM120 million in the same quarter last year.
This latest result surpasses the company's previous record net profit of RM155.83 million achieved in the first quarter ended March 31, 2024 (1QFY2024). Earnings per share rose to 2.6 sen from 1.6 sen in 3QFY2023. No dividends were announced for the quarter.
The jump in net profit was primarily supported by fees from Web3 services on the Zetrix blockchain, sales of Zetrix tokens, and a fair value gain from its investment in HeiTech Padu Bhd (KL:HTPADU), MyEG said in a filing to Bursa Malaysia on Wednesday.
The e-services provider said it acquired the stake of 14.57 million shares via its unit MyEG Capital Sdn Bhd through the open market and direct business transactions.
The company said it bought 5.16 million shares from the open market on March 7 for RM11 million cash or RM2.134 sen per HeiTech share.
It also acquired 9.42 million shares via direct business transactions for RM20.25 million or RM2.15 per share on average.
Revenue for the quarter grew 27.8% to RM248.13 million from RM194.12 million, driven by the fair value gain in its investment in HeiTech Padu as a result of mark-to-market practice.
For the nine months ended Sept 30, 2024, cumulative net profit climbed to RM516.42 million, from RM337.49 million a year ago, while revenue rose to RM723.37 million from RM552.22 million.
Going forward, the company said it aims to drive organic growth by introducing innovative services, particularly in blockchain and Web 3.0 technologies, both in Malaysia and internationally.
MyEG also plans to commercialise these services through its Layer 1 blockchain platform, Zetrix, as Web 3.0 adoption expands.
“Zetrix has also been integrated with China’s national blockchain platform, namely 'Xing Huo' which will allow ease of cross-border trade to take place, and it will be the group’s foray into the global market,” it said.
At the close of trade, MyEG’s share price rose one sen or 1.15% to 88 sen, giving the company a market capitalisation of RM6.68 billion. Year to date, the stock has increased 7.98%.