GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 19 3. PERFORMANCE BY BUSINESS SEGMENT AND GEOGRAPHY (cont’d) 3.1 Performance By Business Segment (cont’d) a) Transaction Payment Acquisition (“TPA”) Segment (cont’d) (ii) GHL (electronic payment services) (cont’d) Table 2 GHL Electronic payments TPA (All stated in RM’millions unless stated otherwise) 2016 (Restated) 2017 % change Transaction Value Processed (Note 1) 2,692.3 4,038.7 50.0 Gross Revenue 32.2 42.9 33.3 Gross Revenue/Transaction Value (Note 2) 1.2% 1.1% -11.2 Gross Profit (Note 3) 19.9 24.2 21.6 Gross Profit/Transaction Value (Note 2) 0.7% 0.6% -19.0 Merchant Footprint - TPA Only (Thousands) (Note 4) 25.2 33.6 33.2 Note 1 – The 2016 figure has been restated to be consistent with re-classifications in 2017 Note 2 – Gross Revenue or Gross Profit respectively divided by the Transaction Value Processed expressed as a %. Note 3 – The 2016 gross profit has been restated to reflect certain processing and maintenance fees relating to the TPA business that were previously excluded and which have now been appropriately re-classified. Note 4 – This has been restated to reflect the absolute number of POS terminals deployed at merchant outlets contracted by GHL to accept card payment products and services. Previously, we reported the total number of acceptance points for each of the various payment products that GHL offers its merchants e.g. credit cards, MyDebit, etc. b) Shared Services Segment Shared services segment revenue grew marginally by +1.5% yoy to RM55.7 million (2016: RM54.9 million) primarily due to the decline in sales of EDC terminals in Malaysia. c) Solutions Services Segment Solutions services revenue grew +13.8% to RM15.7 million (2016: RM13.8 million) primarily due to software sales driven by the migration to PIN authentication in Malaysia. Thailand also saw an increase in this segment due to sales of Loyalty and Payment Network solutions. 3.2 Performance by Geography 210.4 211.0 8.1 12.7 26.4 29.1 1.0 0.9 245.9 253.7 Malaysia Thailand Philippines Australia Total Revenue by Country 2016 2017 0 50.0 100.0 150.0 200.0 250.0 MANAGEMENT DISCUSSION AND ANALYSIS CONT’D