14 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 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) YTD 2020 YTD 2021 % change Transaction Payment Value 15,226.9 18,337.3 20.4% Gross Revenue 74.7 95.1 27.3% Gross Revenue/Transaction Payment Value (Note 1) 0.49% 0.52% 5.7% Gross Profit 27.9 34.0 21.7% Gross Profit/Transaction Paymennt Value (Note 1) 0.18% 0.19% 1.0% Merchant Footprint - TPA Only (Thousands) 103.9 121.9 17.3% Note 1 – Gross Revenue or Gross Profit respectively divided by the Transaction Payment Value expressed as a % b) Shared Services Segment Shared Services segment revenue declined by 3.6% YoY to RM116.7 million (2020: RM121.1 million), due to lower EDC terminals sales and deployment as the result of movement control restrictions and cautious capital expenditure spending by the banking sector in light of the uncertainty of COVID-19 in 2021. The Shared Services segment was also impacted by lower rental and maintenance revenue due to terminal retrievals by banks from its merchants that were affected by the lockdowns. c) Solutions Services Segment Solutions Services revenue marginally declined by 2.7% to RM14.5 million (2020: RM14.9 million), due to slower investment spending by customers. 3.2 Performance by Geographical Location Group revenue for FY2021 was up 7.7% YoY to RM360.2 million (2020– RM334.5 million) with overall growth driven by TPA but tempered by minor YoY declines in Shared Services and Solution Services business pillars. Malaysia and Philippine markets registered growth during this period but Thailand continue to be impacted by lower TPA transactions and lower Solutions Services revenue in the comparative FY2020. Despite the improvement in top line group revenue, the group posted lower gross profit margins of 38.9% (2020 – 43.1%) due to changes in product and business division revenue mix. 2021 registered a pre-tax profit of RM40.7 million compared to RM21.3 million a year ago. In FY2020 however, there were two key non-cash items included in the financials, namely, fair value loss on the 2018 Paysys acquisition consideration shares (RM6.1million) and write-down of the group’s Cambodia investment (RM11.9 million). Malaysia’s operations, which is the largest in the group, contributed 81.2% (2020 – 79.6%) of group revenue and registered a 9.8% YoY growth due to improvements in TPA and Solutions Services with a slight decline of performance in Shared Services. Malaysia was driven by its TPA division as consumers continued to switch to cashless payments. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
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