KUALA LUMPUR (Oct 28): CTOS Digital Bhd (KL:CTOS) reported a 11.5% year-on-year increase in net profit for the third quarter ended Sept 30, 2026 (3QFY2026), supported by higher revenue and contributions from associate companies, despite disruptions to some of its credit reporting services following a cybersecurity incident.
According to its bourse filing on Wednesday, net profit rose to RM27.54 million from RM24.69 million a year earlier, while quarterly revenue increased 5.5% to RM87.57 million from RM83.01 million.
The credit reporting agency declared a third interim dividend of 0.7 sen per share for FY2026, payable on Jan 27, 2027 with an entitlement date of Dec 29, 2026.
CTOS said earnings were supported by higher revenue, increased contributions from associates and lower financing costs.
For the cumulative nine months ended Sept 30, 2026 (9MFY2026), net profit rose 14% to RM68.71 million from RM60.29 million, while revenue grew 7.5% to RM256.02 million from RM238.08 million.
Growth was driven by its Malaysian and international operations, although higher operating costs and the suspension of certain credit reporting services weighed on its domestic business.
Revenue from Malaysian operations increased 4% to RM215.18 million for the nine-month period, while segment profit remained largely unchanged at RM60.81 million.
CTOS attributed the flat domestic profit to higher spending on cloud migration and technology infrastructure upgrades, alongside disruptions to some of its credit reporting services.
Meanwhile, international revenue jumped 31.3% to RM40.84 million, driven by increased usage among existing customers and the addition of new clients in Indonesia and the Philippines.
International segment profit more than doubled to RM7.05 million from RM2.75 million.
On a quarter-on-quarter basis, revenue edged up 0.8% from RM86.87 million in 2QFY2026, while pre-tax profit increased 15.9% to RM29.28 million.
The group also recognised a RM2.03 million gain from the disposal of a 10% stake in Juris Technologies Sdn Bhd (JurisTech) during the quarter, reducing its interest in the company to 39%.
Looking ahead, CTOS remains cautiously optimistic about its prospects for the rest of 2026 despite the cybersecurity disruption.
“The group continues to strengthen its cybersecurity, data governance and information security capabilities,” it said.
The company suspended certain credit reporting services following a cybersecurity breach in September, with services set to resume after remediation work and independent reviews are completed. It e
CTOS shares closed three sen or 7.14% lower at 39 sen on Wednesday, valuing the group at RM862.4 million. The counter has shed 37% of its value since CTOS disclosed the breach on Sept 23, when it closed at 62 sen.