Reach Ten posts 32% rise in 2Q profit

KUALA LUMPUR: Reach Ten Holdings Bhd is venturing into the maritime and oil and gas (O&G) sectors, where its Starlink satellite services are set to meet rising demand for reliable, wide-coverage connectivity.

“This strategic diversification represents a pivotal step in broadening our customer base, strengthening recurring revenue streams, and reinforcing long-term growth.

“With our robust infrastructure and clear strategy, we are confident of sustaining momentum and delivering greater value to our shareholders,” managing director Leo Chin said in a statement.

In the second quarter ended June 30 (2Q25), the Sarawak-based telecommunications service provider’s net profit rose 32.4% quarter-on-quarter (q-o-q) to RM9.4mil, or earnings per share of 0.94 sen, compared with RM7.1mil, or 0.89 sen in 1Q25.

Quarterly revenue increased 16.0% to RM26.8mil, driven mainly by its satellite-based communication networks and services, which contributed 63.0% of total turnover, followed by fibre optic communication networks and services (24.0%) and telecommunications infrastructure and managed services (13.0%).

There are no comparative figures for the previous corresponding quarter as this is the company’s third interim financial report issued in compliance with the Listing Requirements.

For the first half ended June 30 (1H25), Reach Ten achieved revenue of RM49.8mil, gross profit of RM24.5mil, and net profit of RM16.6mil, with a gross profit margin of 49.2% and a healthy net margin of 33.2%.

As at June 30, the group held RM172.6mil in cash, bank balances, fixed and short-term deposits. Net assets per share stood at 21 sen, reflecting a solid balance sheet to support its growth plans.

“We are encouraged by our strong second-quarter performance, which reflects the resilience of our business model and the growing demand for our communications infrastructure. The improvement in profitability demonstrates the effectiveness of our disciplined execution and cost management strategies,” Chin said.