KUALA LUMPUR (Aug 21): Reach Ten Holdings Bhd's (KL:REACHTEN) net profit nearly doubled in the second quarter from a year earlier, mainly driven by an unrealised fair value gain on its investment in SpaceX.

Net profit for the quarter ended June 30, 2026 (2QFY2026) jumped to RM18.57 million from RM9.42 million, while revenue rose 2.2% year-on-year to RM27.38 million from RM26.77 million, according to the telecommunications infrastructure group's bourse filing on Friday.

The group said the stronger earnings were mainly driven by an unrealised fair value gain of RM10.3 million on its investment in SpaceX following the listing of the rocket and satellite company, which allowed the investment to be remeasured based on an observable market price.

Reach Ten's revenue growth was supported by stronger contributions from its telecommunications infrastructure and managed services business, as well as its fibre optic communication network segment.

This was partly offset by weaker revenue from its satellite-based communication business following the completion of a major project.

For the first half of FY2026, net profit rose 52.1% to RM26.79 million from RM17.62 million a year earlier, despite revenue declining 6.3% to RM51.68 million from RM55.16 million.

The lower half-year revenue was mainly due to reduced contribution from the satellite-based communication segment following the completion of a major project, partly cushioned by stronger fibre optic revenue.

No dividend was declared during the quarter.

Looking ahead, Reach Ten said it remains optimistic, supported by sustained demand for digital connectivity and ongoing digitalisation initiatives in Malaysia.

The group expects its satellite-based business to remain a key contributor on the back of newly secured contracts, while its fibre optic business is expected to benefit from network expansion and growing demand for high-speed broadband services.

Barring unforeseen circumstances, Reach Ten expects to deliver a satisfactory performance for FY2026.

Shares in Reach Ten closed half a sen or 1.3% lower at 37.5 sen on Friday, valuing the group at RM375 million.