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Daythree Digital Closes FY23 On a High Note, Reflecting Strong Demand In The GBS industry

KUALA LUMPUR: Daythree Digital Bhd (DDB) posted a revenue of RM89.9 million for the financial year ended December 31, 2023 (FY23), marking a 38.1 per cent increase over FY22’s revenue of RM65.1 million.

Daythree Digital Bhd managing director Raymond Davadass said the company prioritises understanding its clients’ unique challenges and crafting tailored solutions to drive their success.

This growth is a testament to DDB’s strategic alignment with the surging demand in the global business services (GBS) industry.

Net profit increased 22.6 per cent to RM7.6 million in FY23 from RM6.2 million in FY22.

In January 2023, DDB received approval in principle from the Malaysian Investment Development Authority (MIDA) for the tax exemption of an additional five-year term to February 15, February 2027.

This exemption, however, will only apply upon the gazetting of the relevant tax exemption provisions, and until that time, statutory taxation remains in effect.

For FY23, DDB posted a profit before tax (PBT) of RM10.8 million. Excluding the one-off listing expenses of RM1.2 million, the adjusted PBT stood at RM12.0 million.

This represents a significant increase from FY22’s PBT of RM9.5 million.

The year-on-year (YoY) growth in PBT of 26.3 per cent underscores DDB’s focus on growth, exemplified by securing eight new brands and two new lines of business from an existing client during the financial year.

DDB managing director Raymond Davadass said the company prioritises understanding its clients’ unique challenges and crafting tailored solutions to drive their success.

“We believe that through our consultative approach, we will not only attract new partnerships but also offer long-term relationships built on mutual growth and prosperity,” he said in a statement.

Raymond said as a technology-driven company, DDB remain committed to innovation, focusing on technologies into services to boost efficiency and reduce reliance on manual labour for low value tasks.

“Our dedicated digital transformation team continues to seek new ways to streamline processes, eliminate waste, and enhance our clients’ value,” said Raymond.

The company’s growth momentum is supported by Malaysia’s digital economy aspirations and the government’s supportive policies, which have fostered a conducive environment for the GBS sector.

Malaysia’s appeal as a GBS destination is further enhanced by its cost-effectiveness and minimal natural disaster risks, providing a stable business platform.

The company’s energy and utilities sector remains a significant contributor, with RM39.9 million in revenue, embodying the DDB’s diversified strength across various segments including RM16.9 million from fintech and financial services, RM15.0 million from telecommunications and media, RM9.2 million from e-commerce and retail, RM5.4 million from travel and hospitality and RM3.5 million from other sectors.

With the global GBS industry on an upward trajectory, DDB is optimally positioned to capture this growth.

The Malaysian GBS industry is expected to expand from RM24.8 billion in 2023 to RM31.7 billion by 2027, at a compounded annual growth rate (CAGR) of 6.3 per cent.

This promising outlook is mirrored in DDB’s strategic investments and utilisation of the RM33.1 million raised from the successful listing on the ACE Market of Bursa Malaysia, with a balance of RM25.2 million earmarked for further business expansion.

Further, RM0.6 million has been utilised to recruit experts in the industry, RM0.3 million for capital expenditure, RM3.3 million for working capital, RM3.7 million for listing expenses, and a maiden RM0.01 million deployed in branding, marketing and promotional activities.

As of February 21, 2024, DDB’s share price stood at RM0.355, indicating a market capitalisation of RM170.4 million, reflecting investors’ confidence in the company’s strategic direction and future potential.

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