MYEG net profit falls to RM120mil in 3Q on one-off recognition of fair value gain

KUALA LUMPUR: Barring any unforeseen circumstances, MYEG Services Bhd said it is cautiously optimistic of a positive outlook as it continues to introduce innovative services in Malaysia as well as globally.

The digital services provider said it continues to introduce innovative services by leveraging new technologies, specifically blockchain or Web 3.0 in Malaysia and internationally to drive organic growth.

“With its Layer 1 blockchain platform namely Zetrix coming online, there is a huge potential for MYEG to commercialise innovative services as Web 3.0 becomes widely adopted.

“Furthermore, Zetrix has also been integrated with China’s national blockchain platform, namely “Xing Huo” which will allow ease of cross border trade to take place and it will be the group’s foray into the global market,” it said in a bourse filing.

In the third quarter ended Sept 30, 2023, MYEG said net profit was lower year-on-year at RM120mil compared to RM150.71mil in 3QFY22, mainly owing to the one-off recognition of fair value gain in investment amount to RM61.89mil from the listing of its investment in Agmo Holdings Bhd.

“Without taking into consideration the one-off recognition of fair value gain, operating profit after tax increased by RM29.96mil (or 33.25%) which was attributable to the contribution from our Zetrix platform,” it said.

The group’s earnings per share fell to 1.6 sen from two sen in the same quarter in 2022.

Revenue, however, was higher at RM194.12mil from RM162.62mil in the comparative quarter due to the contribution from newly launched services from the Zetrix blockchain platform and the sale of Zetrix tokens.

Cumulatively, net profit for the three quarters of 2023 was RM337.49mil, up from RM323.97mil in 9MFY22.

Revenue for the period was RM552.22mil, an improvement from RM486.18mil in the same 2022 period.