KUALA LUMPUR (Oct 13): CTOS Digital Bhd (KL:CTOS), whose shares fell to a record low on Tuesday, expects its recent cybersecurity breach to reduce its financial year ending Dec 31, 2026 (FY2026) profit after tax and minority interests (Patami) by RM12 million and revenue by RM16 million.
In a bourse filing on Tuesday, the credit reporting agency said the estimates assume some services remain unavailable until the third week of October. CTOS Score and Central Credit Reference Information System (CCRIS)-related reports remain temporarily unavailable.
The impact is estimated at RM5 million in Patami and RM3 million in revenue for the third quarter ended Sept 30, 2026 (3QFY2026), followed by RM7 million in Patami and RM13 million in revenue for 4QFY2026.
Each additional week of disruption could further reduce Patami by RM1.3 million and revenue by RM2.5 million.
CTOS said the estimates are preliminary and may change as more information becomes available. The company has implemented security measures and is conducting independent reviews, targeted for completion in October. It aims to restore the affected services once remediation and independent validation are completed.
The estimated RM12 million profit impact represents about 11.5% of CTOS’s RM104.4 million net profit for FY2025, while the RM16 million revenue impact is equivalent to about 4.9% of its RM326.06 million revenue last year.
For the first half of FY2026, CTOS'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.
CTOS first disclosed the cybersecurity incident on Sept 23, saying unauthorised access had occurred in an environment supporting its consumer business. Some files containing a limited amount of consumer information were accessed, but the company did not specify what personal data was involved.
At the time, CTOS said the incident was not expected to have a material financial impact based on the information available.
CTOS shares fell to an intraday low of 45.5 sen on Tuesday before paring some of its losses to close down half a sen or 1.04% at a record low of 47.5 sen, valuing the group at RM1.05 billion. The last three weeks also have wiped out more than RM300 million of the company’s market capitalisation.
Year to date the stock is down 40.08%.
Despite the share price decline, analyst sentiment remains broadly positive. Bloomberg data showed seven analysts had “buy” ratings and two had “hold” calls, with a consensus 12-month target price of 89 sen.
Creador, through Jade Vine Sdn Bhd, is CTOS’s largest shareholder with a 20.87% stake, followed by the Employees Provident Fund (20.68%), Aberdeen Group plc (14.89%) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) (9.04%), according to Bloomberg.