KUALA LUMPUR (April 25): CTOS Digital Bhd (KL:CTOS) announced that its group chief executive officer (GCEO) Erick Hamburger will be stepping down in September, while it reported a 30.64% decline in net profit for the first quarter ended March 31, 2025 (1QFY2025).

CTOS' non-independent non-executive director Loh Kok Leong will become interim GCEO starting May 1, as Hamburger will be on leave until his employment ends on Sept 30.

Hamburger is leaving to explore new career opportunities, the company said in a filing with Bursa Malaysia.

CTOS said its net profit was down to RM14.44 million in 1QFY2025 compared with RM20.82 million in the same period last year due to higher depreciation and amortisation expenses.

However, revenue rose 6.28% to RM76.07 million from RM71.58 million, supported by stronger contributions from the direct-to-consumer and key account segments.

The group’s international business — comprising alternative data credit score operations in Indonesia and the Philippines — recorded a 21.1% year-on-year increase in revenue, underpinned by sustained growth in client consumption. Revenue from Malaysian operations rose 4.3% year-on-year on higher sales but was offset by higher operating expenses.

Meanwhile, share of profits from associates jumped 54% year-on-year to RM2.8 million, driven by the strong performance of Juris Technologies Sdn Bhd.

CTOS declared a first interim dividend of 0.44 sen per share, payable on July 23 with an entitlement date of June 25. This represents a 70% payout ratio for the quarter.

CTOS remains optimistic about 2025 growth, driven by its products, services, and efforts to improve operational efficiency amid global and domestic uncertainties.

Outgoing GCEO Hamburger said in a statement that financial institutions are seeking more advanced data and tools for credit analysis, driving continued demand for our services.

He added that several product updates and new solutions are set for launch in 2025, reinforcing its commitment to continuous improvement.

Meanwhile, CTOS announced that Loh, who joined the board in July 2021, will be re-designated as an executive director with his appointment as interim GCEO.

CTOS said Loh’s appointment ensures a smooth transition, with no disruption to operations.

Shares of CTOS were unchanged at RM1.14 at Friday's noon break, valuing the company at RM2.63 billion.