CTOS Digital posts higher third-quarter profit despite cybersecurity disruption

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CTOS Digital posts third-quarter 2026 profit

Highlights

CTOS's net profit for 3QFY2026 rose 11.5% to RM27.54 million, while revenue increased 5.5% to RM87.57 million, supported by higher revenue and lower financing costs.
The international segment recorded a 31.3% surge in revenue to RM40.84 million, while profit more than doubled to RM7.05 million, driven by customer growth in Indonesia and the Philippines.
The domestic business remained under pressure from rising operating costs and the suspension of some services following the cybersecurity incident, despite Malaysian operations recording revenue of RM215.18 million (+4%).

This article was translated from the original. Read the original version by our correspondent here.

Third-quarter performance and financial details

As reported by The Edge Malaysia, citing its bourse filing on Wednesday, CTOS's net profit for 3QFY2026 rose 11.5% 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 its third interim dividend of 0.7 sen per share for FY2026, payable on 27 Jan 2027, with an entitlement date of 29 Dec 2026. CTOS said its earnings performance was supported by higher revenue, increased contributions from associates and lower financing costs.

For the nine-month period ended 30 Sept 2026, 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. Quarter on quarter, revenue increased 0.8% from RM86.87 million in 2QFY2026, while profit before tax rose 15.9% to RM29.28 million.

The group also recognised a gain of RM2.03 million from the disposal of a 10% stake in Juris Technologies Sdn Bhd, or JurisTech, during the quarter, reducing its stake in the company to 39%.

Operational disruption and regional growth contributions

Growth over the nine-month period was driven by operations in Malaysia and international markets, although higher operating costs and the suspension of some credit reporting services weighed on the domestic business. Revenue from Malaysian operations rose 4% to RM215.18 million, but segment profit remained nearly unchanged at RM60.81 million.

CTOS attributed flat domestic profit to higher spending on cloud migration and technology infrastructure upgrades, as well as disruption to some of its credit reporting services. In the international segment, revenue surged 31.3% to RM40.84 million, driven by increased uptake among existing customers and the addition of new customers in Indonesia and the Philippines.

International segment profit more than doubled to RM7.05 million from RM2.75 million. Looking ahead, CTOS remains cautiously positive about the outlook for the remainder of 2026 despite the cybersecurity disruption, with some services suspended following the September breach scheduled to resume once recovery work and an independent review are completed.

In our earlier article on the impact of the CTOS cybersecurity incident Digital, we discussed how service disruptions and market concerns weighed on the stock and prompted a reassessment of forecasts. We also highlighted the company's expectation that the breach could reduce net profit by around RM12 million and revenue by approximately RM16 million if some services remained disrupted, with the risk of continued pressure if the disruption lasted longer.

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