MyEG optimistic of another good year ahead
By Goh Thean Eu August 27, 2014
- Growth to be driven by rollout of new services, increasing awareness
- Full-year revenue up 43% to breach RM100mil mark for the first time
MY E.G. Services Bhd (MyEG), one of the biggest Internet services companies listed in Malaysia, is optimistic about its growth prospects for the financial year ahead ending June 30, 2015, after it delivered another good run with its recent full year financial results.
The e-government services provider, which saw full-year net profits jump 43% to RM50.11 million (US$15.82 million), expects growth next year to be driven by new services as well as expanding volume of its existing services, on the back of an extension of its concession period with the Malaysian Government.
It is also MyEG’s eighth consecutive year of growth in both the topline and bottomline since it was listed on the Malaysian stock exchange Bursa Malaysia in 2006.
“With our concession period extended for a further five years from May 23, 2015 to May 22, 2020, we are working closely with new and existing government agencies to introduce additional online services which are relevant to Malaysians,” MyEG said in its Aug 25 filing to Bursa Malaysia.
“Barring any unforeseen circumstances, the directors of MyEG are of the opinion that the results for the financial year ending June 30, 2015 will continue to be satisfactory as awareness of our existing services and brand name continues to increase while MyEG continues to roll out new services,” it added in the statement.
Currently, the MyEG portal allows users to perform various transactions including renewing road tax, foreign worker permits and insurance, as well as settling traffic summonses.
For the full year ended June 30, 2014, MyEG’s revenue breached the RM100-million (US$31.56-million) mark for its first time, after it went up 43% to RM109.87 million (US$34.68 million), versus RM76.48 million (US$24.14 million) a year ago.
The growth in full year revenue and earnings was partly driven by the increase in volume driven by its ongoing advertising and promotion campaigns to create and enhance brand awareness, the comoany said.
Meanwhile, for the fourth quarter alone, revenue and net profit gained 69% and 54% at RM35.37 million and RM16.63 million, respectively. [RM1 = US$0.32]
MyEG attributed the growth to higher transaction volumes from the online renewal of foreign workers’ permits and online transfer of vehicle ownership.
While its financial statement did not provide a breakdown on how much it spends on advertising, marketing and promotion, the company revealed that its full year operating expenses (which includes marketing, advertising and promotion expenses) increased by about 50% during the financial year, to RM45.41 million, against RM30.13 million a year ago.
The company, cofounded by Wong Thean Soon (aka T.S. Wong), has been consistently growing over the past several years.
* Unaudited numbers
Under his leadership since 2007, MyEG has seen net profits grow from RM7.1 million to RM50 million, and revenue from RM25.48 million to more than RM100 million. Wong (pic) has a 7.23% direct stake and a 33.6% indirect stake in the company.
In 2000, myEG signed a 15-year concession agreement with the Malaysian Government for the electronic delivery of driver and vehicle registration, licensing and summons services, utility bill payments and the Ministry of Health’s online information system.
The concession, which was initially supposed to expire on May 22, 2015, has been extended by another five years, after it obtained an extension letter from the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) last month.
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