XOX 0165 Share Price

The Group’s loss before tax improved by 24.43% from RM89.23 million to RM67.43 million for the current year, mainly due to lower non-operating losses of RM64.87 million (FY 2022: RM94.38 million) from investments. In addition to telecommunications industry, XOX has acquired Perak Football Club, leveraging on its expertise in brand strategy, digital marketing, and public relations. Live events during football matches serve as an effective channel to distribute XOX’s products and services. Despite challenges like market saturation and uncertain economic factors, XOX remains cautiously optimistic about its future. Key approaches encompass enhancing brand awareness, implementing subscriber retention initiatives, and expanding digital ecosystems to harness the potential of the 5G era.

The Group posted a loss before tax (“LBT”) of RM89.23 million for the financial year under review. The loss reported mainly arose from the impairment loss in investment in associates amounting to RM67.13 million and fair value loss adjustment in quoted shares investment of RM36.98 million, which was partly offset by the unrealised foreign exchange gain of RM17.34 million. Moving Forward, The Group will continue to invest in new technology, hire the best talent, develop strategic partnerships, deliver innovative products and services to serve our customers, and focus on curating an engaging and seamless digital journey to increase customer acquisition and retention rates.

The Group revenue was down by 12% quarter-on-quarter (“QoQ”) to RM66.95 million, largely attributed to weaker acquisition resulted from softer on-ground activities and lack of competitive product offering, coupled with softer commercial momentum. As a result of the lower revenue reported, a lower PAT of RM0.56 million & EBITDA of RM5.40 million were reported compared to the previous quarter of RM3.11 million and RM7.39 million respectively.

The Group revenue was down by 15% at RM82.69 million for the quarter as compared to RM97.77 million reported in the preceding quarter, as the previous quarter revenue included revenue generated from a one off entry-level phone bundling plans. Higher Loss after tax of RM75.96 million recorded for the reporting quarter compared to RM8.77 million reported in the previous quarter due to higher fair value changes in quoted shares investment in the current quarter under review.

The Group recorded a LAT of RM12.92 million as compared to PAT of RM5.25 million reported in the previous quarter. It was due to fair value loss of RM13.14 million after offsetting the gain on disposal of warrant, in relation to investment in quoted shares as compared to a fair value gain of RM14.67 million in the previous quarter.

Loss-making XOX Bhd has proposed to buy a 29.43% stake in sports apparel retailer Cheetah Holdings Bhd, from Chia Yoon Yuen Holdings Sdn Bhd, for RM44.62 million in cash. XOX said the purchase of the 33.8 million shares at RM1.32 per share would represent a premium of 37.03% to the five-day volume weighted average market price of Cheetah’s shares up to Feb 3 of 96.33 sen.