GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 15 3. PERFORMANCE BY BUSINESS SEGMENT AND GEOGRAPHY (cont’d) 3.1 Performance By Business Segment (cont’d) b) Shared Services Segment Shared services segment revenue grew strongly by +83.3% yoy to RM102.1 million (2017: RM55.7 million) primarily due to the increase in sales of EDC terminals in Malaysia and Thailand. c) Solutions Services Segment Solutions services revenue slightly declined -7.6% to RM14.5 million (2017: RM15.7 million) primarily due to lower software and Payment Network solutions sales. 3.2 Performance by Geography 2018 Group turnover grew +17.9% yoy to RM299.1 million (2017 – RM253.7m). Pre-tax profits was up +31.9% yoy to RM33.5 million compared to RM25.4 million a year ago and pre-tax margin increased to 11.2% (2017 - 10.0%). Malaysian operations contributed 76.4% (2017 – 83.2%) of group turnover and the decrease in weighting was due to a better performance from both Thailand and Philippines. EBITDA margin was 16.3% for 2018, a slight increase from 15.6% in 2017. Philippines’ turnover grew +16.8% yoy at RM34.0m (2017 – RM29.1m) with EBITDA margin slightly down at 36.9% from 37.9% over the corresponding period last year. Solutions Services registered yoy decline but Shared Services and TPA saw growth driven by higher rental fees and transaction fees collected. Thailand recorded a strong growth in topline revenue of +178.7% to RM35.4m (2017 – RM12.7m) due to strong EDC hardware sales from its Shared Services segment. TPA segment also saw strong growth in MDR transaction fee collected and contribution from hardware sales from a network project drove growth at its Solutions Services segment. EBITDA registered strong positive growth at RM6.0m compared to RM3.4m in 2017 with EBITDA margins at 17.2% vs 26.6% in 2017. Australia remains the smallest contributor to group operations at RM1.2 million compared to 2017 YTD turnover of RM0.9 million. Both years saw positive EBITDA contribution of RM0.5 million and RM97,000 for 2018 and 2017 respectively. Revenue by Country 2017 2018 300.0 250.0 211.0 12.7 35.4 34.0 29.1 0.9 1.2 253.7 299.1 228.5 200.0 150.0 100.0 50.0 - Malaysia Thailand Phillipines Australia Total MANAGEMENT D I SCUSS I ON AND ANA LYS I S C O N T ’ D