Privasia records 11.3 per cent increase in satellite services revenue for the second quarter of 2016

KUCHING: Privasia Technology Berhad (Privasia), a leading player in Information Technology (IT) outsourcing and consulting in Malaysia, recorded a 11.3 per cent increase in revenue from its satellite-based network services (SAT) segment to RM2.8 million in its second quarter ended 30 June 2016 (2Q16) from RM2.5 million previously.

The IT and Information and Communications Technology (ICT) segments were impacted by the dampened market sentiment and project completion resulting in revenues of RM8.9 million and RM5.9 million respectively in 2Q16, versus RM11.3 million and RM6.1 million in 2Q15.

Overall, 2Q16 group revenue totalled RM17.7 million declining from RM19.9 million a year ago. 2Q16 net profit was at RM0.4 million versus RM0.9 million previously.

Puvanesan Subenthiran, chief executive officer and managing director said the unfavourable market sentiment had an adverse impact on the local economy, making it a challenging first half for local businesses, including Privasia.

“Besides strengthening our SAT segment, we are reinforcing our current forte in the intellectual property space, such as our eprocurement platform Procure,” he added in the statement.

“This, added with our current outsourcing orderbook of RM109 million lasting us till 2021, certainly paints a brighter picture for the Group in the future.”

For the first half ended June 30, 2016 (1H16), Privasia’s revenue dipped 13.4 per cent to RM35.7 million from RM41.2 million a year ago.

This was on the back of slower billings from the IT and ICT segments which generated revenue of RM18.2 million and RM11.4 million respectively in 1H16, versus RM22.4 million and RM13.5 million previously.

Revenue from the SAT business grew 13.5 per cent to RM6.0 million in 1H16 from RM5.3 million in 1H15.

The lower topline, coupled with higher tax, resulted in group net profit declining 52.2 per cent to RM1.0 million against RM2.2 million previously.