KUALA LUMPUR (Nov 25): Catcha Digital Bhd (KL:CATCHA), the digital media and technology group known for its portfolio of online media assets, does not expect to declare any dividend in the near term as it continues to channel capital into acquisitions and organic expansion.
Chief executive officer Eric Tan Leong Yit said the group sees “significant opportunities ahead” to acquire profitable digital businesses at attractive valuations, making reinvestment a more compelling option than returning cash to shareholders.
“We don’t plan to pay a dividend anytime soon. We see plenty of opportunity to reinvest our cash flow in great businesses,” Tan said at the group’s virtual results briefing for the third quarter ended Sept 30, 2025 (3QFY2025) on Tuesday. “We may start paying dividends when we stop finding good businesses to buy at a good price — and for now, we don’t see that happening anytime soon.”
Tan reiterated that Catcha Digital views itself primarily as a growth-focused and acquisition-led company that aims to build a permanent portfolio of sustainably profitable digital and technology companies.
“This is a growth stock. It’s going to compound over years,” he said. “Our strategy is to build a permanent home for strong cash-flow businesses — growing them organically, acquiring new ones, and applying best practices we’ve developed over the past years.”
Over the past 12 months, Catcha Digital has been one of the most active acquirers in the local digital media and technology services space. Its most recent confirmed and proposed transactions include the acquisition of a 51% stake in Nexible Solutions Sdn Bhd, a digital and tech solutions provider.
Meanwhile, several pending deals — including the acquisition of a 60% stake in Framemotion Studio Sdn Bhd (FMS), a digital content and production company, and 92.5% of Theta Service Partner Sdn Bhd, an IT and software services provider — are expected to complete by end-2025, allowing full consolidation from FY2026 onwards.
On funding, Tan emphasised that Catcha Digital remains “well-positioned to support its acquisition pipeline”. The renounceable rights issue with free detachable warrants proposed earlier this year is expected to meet the group’s acquisition financing needs for the next 18 to 24 months.
"Funding is the last thing I worry about. The bigger challenge is identifying the right companies and ensuring they can perform over the long haul,” he said.
Catcha Digital plans to continue expanding its portfolio beyond 2025, with targeted future acquisitions spread across 30% media-related businesses, 50% software and IT-related companies, and 20% in other digital or technology verticals.
The group is aiming for 10% to 20% organic revenue growth annually, supplemented by acquisition-driven expansion as it scales across regional digital sectors.
Shares in Catcha Digital currently traded one sen or 3.51% higher at 30 sen on Tuesday, valuing the company at RM126.42 million. Year-to-date, the counter has declined 18%.