CTOS Digital posts lower 1Q profit, announces interim CEO

KUALA LUMPUR: CTOS Digital Bhd recorded a net profit of RM14.44mil in the first-quarter ended March 31, 2025, a 30.64% decline from RM20.82mil in the year-ago quarter.

The bottomline translated to a decline in earnings per share to 0.6 sen from 0.9 sen in the comparative quarter.

However, the credit reporting firm reported a 6.3% year-on-year increase in revenue in 1QFY25 to RM76.1mil, with higher contributions from the group's direct-to-consumer and key account segments.

In a statement, CEO Erick Hamburger said the group continues to see an uptick in revenue amid abundant growth opportunities domestically and abroad.

"Financial institutions are increasingly seeking more sophisticated data and tools for credit analysis, underpinning sustained demand for the Group’s offerings.

"Innovation remains central to our strategy, and several product enhancements and new solutions are scheduled for launch in 2025, further reinforcing our commitment to continuous improvement and value creation," he added.

The group declared a first-interim dividend of 44 sen per share, which translates to a payout ratio of 70% for the quarter.

The entitlement date for the dividend is on June 25, 2025, and it is payable on July 23, 2025.

Meanwhile, CTOS Digital has appointed Loh Kok Leong as the interim group CEO from May 1, 2025, succeeding Hamburger in what it said is a carefully planned leadership transition.

Hamburger will go on leave for the remainder of his employment from May 1 until Sept 30, 2025.

A filing with the stock exchange announcing Hamburger's resignation from the board of directors said he was stepping down to "explore new career opportunities".

The new appointment comes as the credit reporting firm said it had embarked on a series of cost optimisation initiatives to enhance its operational efficiency and reallocate resources more effectively.

"While the benefits will be realised progressively, we expect to see improvements in our cost-to-income ratio over the coming quarters.

"These measures reflect the group’s commitment to maintaining financial discipline while continuing to invest in strategic growth areas," said Hamburger.