MyEG Q4 net profit doubles

PETALING JAYA: My E.G. Services Bhd’s (MyEG) net profit for the fourth quarter ended June 30, 2016 more than doubled to RM51.05 million from RM22.95 million a year ago due to higher transaction volumes from foreign workers services and newly acquired subsidiary Cardbiz Holding Sdn Bhd and its group of companies.
Notably in June, the Malaysia Competition Commission imposed a RM2.27 million financial penalty on MyEG Services Bhd for abusing its dominant position in the provision and management of online foreign workers permit renewals.
“While concession services continue to be our core business, non-concession related services, such as the road safety diagnostic services, sale of prepaid top-ups for Celcom mobile lines and provision of hostel accommodation to foreign workers, will be one of our main focus of growth for FY17,” MyEG said.
The directors of MyEG are cautiously optimistic that the results for FY17 will continue to be satisfactory as more Malaysians adopt online government services as a convenient and cheaper alternative to transact with the government.
For the full year period, its net profit doubled to RM142.97 million from RM68.15 million from the previous year due to higher transaction volumes from the online renewal of foreign workers’ permits and insurance and foreign worker rehiring programme services; the increase in revenue contribution from its Road Transport Department-related services; and contribution from its newly acquired subsidiary Cardbiz Holding and its group of companies.
Its revenue also almost doubled to RM281.62 million compared to RM141.52 million in the corresponding period last year.
For the financial year ending June 30, 2017 (FY17), MyEG said the continued growth in volume of its existing services, especially the online renewal of foreign workers’ insurance and foreign workers services, are expected to contribute to its group revenue and profit after tax.
Meanwhile, in a separate announcement with Bursa Malaysia the company announced a proposed bonus issue of up to 1.2 billion new ordinary shares of 10 sen each in MyEG, on the basis of one bonus share for every two existing MyEG shares.
The exercise is to be implemented by the first quarter of 2017.