+ Project-related revenue increased 107% YoY. Software licensing revenue spiked more than 6-fold YoY to RM39mn. It was largely contributed to by the delivery of new software licensing contracts and banking deals secured in Indonesia and Thailand. However, this was offset by software project services revenue decreasing 31% YoY to RM14mn. A key new implementation project secured in Thailand has just commenced, and the revenue will be recognised progressively in the subsequent periods. There are also a few new project services which are at the final stage of contracting.
+ Order backlog healthy. Silverlake has a long track record and a proven client base in Southeast Asia. Three of the 5 largest Southeast Asia-based financial institutions uses its core banking platform, and it has largely retained all its clients since bringing them on board its platform. Silverlake’s project pipeline is healthy, at RM2.1bn (4Q22: RM1.9bn), with a healthy order backlog of RM400mn-450mn. Silverlake is beginning to close more deals and is witnessing an uptick in inquiries about its financial services market solutions and capabilities.
– Recurring revenue dipped 2% YoY. Maintenance and enhancement services fell 8% YoY to RM109mn as maintenance revenue was stable, while enhancement services revenue fell due to delays in work order signoffs or acceptance by the customers missed revenue recognition in 1Q23. Nonetheless, this was offset by insurance ecosystem transactions and services revenue increasing by 74% YoY as vehicle claims processing activities recovered, as well as increased revenue from new operations in Japan and UAE. Revenue from retail transactions processing also increased 229% YoY mainly due to higher subscriptions by pharmaceutical and retail customers in Malaysia and Singapore.