KUALA LUMPUR (July 22): CTOS Digital Bhd (KL:CTOS) posted a 7% increase in its second-quarter net profit from the same quarter a year ago, as revenue grew.

The group's net profit rose to RM22.65 million for the three months ended June 30, 2026 (2QFY2026), from RM21.16 million in 2QFY2025, the credit information provider's bourse filing on Wednesday showed. Quarterly revenue climbed 9.96% to RM86.87 million from RM79 million.

A second interim dividend of 0.70 sen per share was declared with the latest results, to be paid on Aug 28.

For the first half of FY2026 (1HFY2026), CTOS Digital’s net profit increased by 15.63% to RM41.16 million from RM35.6 million a year earlier, as revenue grew 8.63% to RM168.46 million from RM155.07 million on the back of continuous growth in both its domestic and international operations.

Revenue from Malaysian operations rose 4.9% to RM141.49 million, though segment profit saw a slight dip to RM36.3 million from RM36.8 million in 1HFY2025 due to operational expenditures incurred for cloud migration and infrastructure modernisation.

Its international operations, comprising alternative data credit score businesses in Indonesia and the Philippines, recorded an almost four-fold increase in segment profit to RM5.79 million from RM1.49 million, as revenue jumped 33.6% to RM26.97 million from RM20.19 million.

Looking ahead, CTOS said it remains cautiously optimistic about its growth prospects in 2026 despite ongoing macroeconomic and geopolitical uncertainties across the region.

The group also noted that it committed to making continued investments in digital products, artificial intelligence (AI) solutions, alternative data and analytics intelligence to drive sustainable revenue growth and margin expansion supported through automation and cost optimisation.

Separately, CTOS said it is trimming its 49% stake in software developer Juris Technologies Sdn Bhd by selling 10% of the stake to Juris' founder and majority shareholder, Natsoft (M) Sdn Bhd, for RM50 million. The move is part of a phased monetisation strategy for its non-core assets, the group said.

Natsoft, which is involved in information technology, software development and consultancy, currently holds 51% in Juris.  CTOS originally acquired the 49% stake in March 2022 for RM205.8 million.

The 10% stake sale is expected to result in a one-off gain of RM1.6 million for CTOS, which it said will help mitigate an estimated RM3 million annualised loss in share of profits from the reduced stake. Juris made a net profit of nearly RM30 million in the financial year ended Dec 31, 2025, and had net assets of RM69.59 million, CTOS noted.

CTOS plans to return a portion of the proceeds directly to shareholders, with RM24.5 million planned for a special cash dividend — estimated at 1.07 sen per share, to be paid within three months of the expected transaction completion by the end of July. It plans to use another RM24.5 million for share buybacks over the next 12 months and the remaining RM1 million for estimated tax and disposal expenses.

CTOS Digital shares slipped half a sen or 0.78% to close at 63.5 sen on Wednesday, valuing the company at RM1.44 billion.