KUCHING: Reach Ten Holdings Bhd announced a RM10 million maiden dividend and RM23.1 million in revenue for its first two months of post-merger operations, marking a strong debut after its Main Market listing earlier this month.
The Sarawak-based telecommunications company, which was listed on the Main Market of Bursa Malaysia on May 2, declared its first interim single-tier dividend of 1.0 sen per share for the financial year ending December 31, 2025.
The payout, the company said, will be made on July 21, 2025 to shareholders whose names appear on the Record of Depositors by June 30, 2025.
Its Managing Director, Leo Chin, said the dividend reflects the company’s policy of distributing up to 30 per cent of net profit, and shows its commitment to creating shareholder value while maintaining financial discipline.
“With healthy cash and bank balances, as well as fixed deposits of RM63 million, Reach Ten aims to maintain a balanced approach between rewarding shareholders through dividend distributions and retaining sufficient capital to support future growth and strategic initiatives,” he said.
The company also reported its financial results for the first quarter ended March 31, 2025.
The figures cover only February and March, following the completion of the merger of its subsidiaries on February 5, in line with Malaysian Financial Reporting Standards for business combinations.
For the period, Reach Ten recorded a net profit of RM7.1 million, with earnings per share of 0.89 sen.
Gross profit came in at RM11.5 million, giving a gross profit margin of 49.7 per cent.
The margin was supported by the completion of service scopes under the VSAT broadband project in 2024 and the continuation of the project this year.
Revenue was mainly driven by its satellite-based communication networks and services segment, which contributed 63.2 per cent of the total.
Fibre optic communication networks and services made up 21.4 per cent, while telecommunications infrastructure and managed services accounted for the remaining 15.4 per cent.
As this is only the company’s second interim financial report, there are no comparative figures from the previous year’s corresponding quarter.
Chin noted that the revenue and profit figures represent just two months of post-merger performance.
On a full-quarter basis, he said, the company would have reported RM28.4 million in revenue and RM8.2 million in net profit.
He assured that the company remains optimistic about its business outlook, citing positive structural trends in Malaysia’s telecommunications sector.
“Nationwide broadband coverage in populated areas has reached 97.28 per cent, and Sarawak has shown consistent growth, reinforcing its long-term potential,” he added.
“As such, we remain confident in the Group’s growth trajectory, driven by rising demand for digital connectivity, supportive government policies, and ongoing infrastructure expansion.
“Our strategic focus on underserved markets, particularly in Sarawak, positions us well to capture emerging opportunities and deliver long-term value to our shareholders.”
