KUALA LUMPUR: Sarawak-based telecommunications service provider Reach Ten Holdings Bhd remains optimistic on its FY26 outlook, driven by rising demand for satellite and fibre connectivity.
Managing director Leo Chin said expanding 5G backhaul needs nationwide are also expected to support growth.
“Malaysia’s telecommunications industry continues to undergo rapid digital transformation, supported by nationwide and state-level initiatives aimed at expanding connectivity and narrowing digital gaps.
“While our first quarter performance was affected by timing-related project factors, we remain encouraged by the opportunities ahead, particularly our Starlink solution continues to play an important role in serving underserved communities,” he said in a statement.
In the first quarter ended March 31, Reach Ten posted a net profit of RM8.2mil, up from RM8.2mil a year earlier, supported by lower tax expenses from tax-exempt income generated through money market investments.
Quarterly revenue was lower at RM24.3mil, compared with RM28.4mil in the corresponding quarter last year.
The lower revenue was mainly attributable to reduced contributions from its satellite-based communication networks and services segment following the completion of major projects.
Despite the decline, the segment remained Reach Ten’s largest revenue contributor, accounting for 61.27% of total revenue during the quarter.
Reach Ten declared a first interim dividend of 1.0 sen per share for FY26 with the entitlement date of 29 June, to be paid on 15 July 2026.
As at March 31, Reach Ten remained in a net cash position, supported by cash and bank balances of RM10.28mil, fixed deposits with licensed banks of RM5.12mil and short-term investments amounting to RM149.62mil.
Looking ahead, Reach Ten is focused on accelerating the commercialisation of its infrastructure assets in FY26, with strategic priorities centred on strengthening recurring income streams and improving infrastructure utilisation.
“Within the satellite-based segment, the company is actively pursuing opportunities under government-led digitalisation initiatives, leveraging its established infrastructure and technical expertise to deliver connectivity solutions in remote and underserved areas where satellite remains the most viable access technology.