KUALA LUMPUR: Revenue Group Bhd posted a lower net profit of RM566,000 for its fourth quarter (Q4) ended June 30, 2022 (FY22), down 55.9 per cent year-on-year (YoY) from RM1.28 million registered in Q4FY21.
The lower earnings were due to higher administrative expenses, which amounted to RM4.56 million, mainly due to higher staff costs by approximately RM1.90 million, provision for unrealised foreign exchange loss by about RM0.60 million, additional provision for doubtful debts of RM0.50 million, higher information technology (IT) infrastructure costs by approximately RM0.50 million and higher depreciation by about RM0.50 million.
Revenue for the quarter rose 62.6 per cent YoY to RM28.54 million from RM17.55 million in the same period last year, attributed to the increase in the revenue from the sale of electronic data capture (EDC) terminals by approximately RM8.52 million due to higher sales of EDC terminals.
The income from the electronic transaction processing segment increased by approximately RM1.83 million due to the strong performance of online merchants.
The revenue from the solutions and services segment increased by RM0.64 million due to higher revenue from the sales of digital payment solutions.
For the full year, the company's net profit rose 19.5 per cent YoY to RM13.44 million from RM11.25 million in FY21.
Revenue for the period increased 13.2 per cent YoY to RM97.7 million from RM86.3 million, mainly driven by the electronic transaction processing (ETP) segment stemming from higher transaction processing value due to the wider adoption of e-commerce transactions.
Revenue group chief executive officer Datuk Eddie Ng noted that the company had consistently achieved top-line growth since its listing in 2018.
"Our team has been kept busy on the mergers and acquisitions (M&A) front over the past financial years to cultivate the seeds of growth.
"Through these M&A activities, we have expanded our offerings and services.
"Recently, the Group also secured another bank of our major partner, who will be leveraging on our proprietary revPAY infrastructure for EDC machines and ETP," he said in a statement.
Ng said Revenue would continue to enhance its e-payment network by focusing on growing the ETP and digital payment services.
"At the same time, we will also continuously strengthen and upgrade our proprietary platform, revPAY, which is a single platform that facilitates the acceptance of payment transactions across various payment channels, to ensure its high scalability," he added.