KUALA LUMPUR (Nov 21): Privasia Technology Bhd extended its turnaround performance with a net profit of RM2.36 million in the nine months ended Sept 30, 2023 (9MFY2023), from losses of RM2.66 million in the previous corresponding period (9MFY2022), amid a strong jump in contribution from its satellite-based network services (SAT) segment.

The SAT segment, which provides solutions such as internet, broadband applications, and satellite IP (internet protocol) virtual private network (VPN), saw top-line contribution rise 16 times to RM56 million on progress billings of new projects.

The segment helped Privasia to triple its revenue in 9MFY2023 to RM79.37 million, from RM26.15 million. It also allowed Privasia to stay in the black, despite losses in its information technology (IT) and information and communications technology (ICT) segments, due to higher operating expenditure and lower contract value, respectively.

Earnings per share in the period came in at 0.38 sen, from losses per share of 0.43 sen. The profit recorded in 3QFY2023 brings the IT and infrastructure outfit closer toward its first full-year period of profitability in seven years.  

In 3QFY2023, Privasia’s net profit rose to RM843,000 or 0.14 sen per share, from RM66,000 or 0.01 sen per share. This was in line with the three-fold jump in quarterly revenue to RM31.75 million, from RM10.35 million.

“The improved financial performance is attributed to growth in revenue, as well as the group’s effort in focusing on enhancing operational efficiency through technology and better resource management,” it said.

On prospects, Privasia said its balance order book stood at RM300.46 million.

“We firmly believe that the market sentiment for digitalisation has not dwindled,” it said.

“While the immediate near-term industry challenges are expected to persist, the group will continue to work toward developing a business model that provides new opportunities and revenue streams, while enhancing system-wide efficiency,” it said.

Shares of Privasia closed one sen higher at 12 sen on Tuesday, giving it a market capitalisation of RM70.6 million.