Privasia Technology Bhd has reported a net profit of RM2.36 million in the nine months ended Sept 30, 2023 (9MFY2023). This is a significant improvement compared to the losses of RM2.66 million in the previous corresponding period (9MFY2022). The company’s satellite-based network services (SAT) segment played a crucial role in this turnaround performance.

The SAT segment, which offers internet, broadband applications, and satellite IP virtual private network (VPN) solutions, saw a substantial increase in its contributions. The segment’s top-line contribution rose 16 times to RM56 million, thanks to progress billings of new projects. As a result, Privasia’s overall revenue for 9MFY2023 tripled to RM79.37 million, compared to RM26.15 million in the previous year.

Despite facing losses in its information technology (IT) and information and communications technology (ICT) segments, Privasia managed to stay profitable. This was due to higher operating expenditure and lower contract value in the respective segments. Privasia’s earnings per share for the period came in at 0.38 sen, a remarkable improvement compared to the losses per share of 0.43 sen.

In the third quarter of FY2023, Privasia’s net profit increased to RM843,000 or 0.14 sen per share, compared to RM66,000 or 0.01 sen per share in the same period last year. This growth was supported by a three-fold jump in quarterly revenue to RM31.75 million, from RM10.35 million.

Privasia attributed its improved financial performance to revenue growth and its focus on enhancing operational efficiency through technology and better resource management.

Looking ahead, Privasia stated that its balance order book stands at RM300.46 million. The company believes that the market sentiment for digitalization remains strong and it will continue to develop new opportunities and revenue streams while improving system-wide efficiency.

Privasia’s shares closed at 12 sen on Tuesday, giving the company a market capitalization of RM70.6 million.