Navigating the currents of a dynamic market, WATTA HOLDING BERHAD has just released its unaudited first-quarter results for the financial period ended 31 March 2025. This report offers a crucial glimpse into the company’s performance, revealing a mixed bag of continued challenges in its core business segments alongside a slight improvement in its overall loss before tax. While revenue saw a dip, the company managed to narrow its loss, signaling ongoing efforts to manage its financial health. Let’s dive into the details to understand the underlying trends and what the future might hold for WATTA.
Q1 2025 Financial Snapshot: A Closer Look at the Numbers
WATTA’s latest quarterly report provides a detailed breakdown of its financial performance. Here are the key figures for the first quarter of 2025, compared against the same period last year:
Q1 2025 (3 months ended 31 March)
- Revenue: RM1,187,000
- Loss Before Taxation (LBT): RM(505,000)
- Net Loss: RM(560,000)
- Basic Loss Per Share: (0.66) sen
Q1 2024 (3 months ended 31 March)
- Revenue: RM1,875,000
- Loss Before Taxation (LBT): RM(518,000)
- Net Loss: RM(573,000)
- Basic Loss Per Share: (0.68) sen
From these figures, we observe a
when comparing Q1 2025 to Q1 2024. This decline is primarily attributed to lower sales from the servicing and repairs of mobile telecommunication equipment products division. Despite this revenue contraction, the company managed to slightly improve its bottom line, recording a
. Similarly, the net loss narrowed from RM0.57 million to RM0.56 million, and basic loss per share improved slightly from (0.68) sen to (0.66) sen.
Segmental Performance: Where the Changes Are Happening
WATTA operates primarily in three segments: Trading/Property, Investment Services, and Investment Holding. Understanding their individual contributions helps explain the overall performance:
| Segment | Q1 2025 External Sales (RM’000) | Q1 2024 External Sales (RM’000) | Q1 2025 Segment Result (RM’000) | Q1 2024 Segment Result (RM’000) |
|---|---|---|---|---|
| Trading/Property | 334 | 317 | (127) | (184) |
| Investment Services | 853 | 1,558 | (271) | (197) |
| Investment Holding | – | – | (188) | (187) |
The most significant impact on revenue came from the
. This segment, which includes the servicing and repairs of mobile telecommunication equipment, faced a substantial decline. Conversely, the Trading/Property segment saw a slight increase in sales and a narrower loss. The Investment Holding segment remained consistent in its revenue and segment loss contributions.
Financial Health: Balance Sheet and Cash Flow
As of 31 March 2025, WATTA’s total assets stood at RM62.112 million, a slight decrease from RM62.925 million at the end of December 2024. Total equity also saw a minor reduction from RM50.990 million to RM50.430 million, maintaining a Net Assets Per Share of RM0.60. While these figures indicate a relatively stable financial position, the cash flow statement reveals a more dynamic picture.
The Group reported a
, compared to RM(424,000) in Q1 2024. This indicates a continued outflow of cash from core operations. More notably, there was a
during the quarter, largely influenced by a significant “placement of deposits not for short term funding” amounting to RM(1,800,000). This strategic decision to reallocate funds out of short-term liquidity significantly impacted the overall cash position at the end of the period.
Navigating Challenges and Charting Future Prospects
WATTA’s performance in Q1 2025 underscores the ongoing challenges faced by its mobile telecommunication equipment servicing and repair division. The report explicitly states that
This industry trend directly impacts the division’s revenue, and the company anticipates this business will continue to be challenging in the first half of FY 2025, with potential for a pickup in the second half.
In response to these headwinds, the Board of Directors is actively exploring new business and asset acquisition opportunities, as well as diversification strategies, to improve the Group’s financial performance. Furthermore, they are committed to active cost management to maintain current activity levels amidst an environment of escalating inflation. This proactive stance is crucial for the company’s long-term sustainability and growth.
Summary and
WATTA HOLDING BERHAD’s Q1 2025 results reflect a company in transition, grappling with the evolving landscape of its traditional mobile telecommunication services business. While revenue declined significantly, the slight narrowing of its loss before tax suggests some success in cost management and operational efficiency. The company’s balance sheet remains relatively stable, though the cash flow statement highlights strategic reallocations of funds.
The core challenge lies in the declining demand for mobile phone repairs due to improved product quality. WATTA’s strategic response involves actively seeking new ventures and diversifying its business portfolio. This forward-looking approach is vital for the company to adapt and find new growth engines.
Key points to consider:
- The significant revenue decline in the Investment Services segment due to technological advancements in mobile devices.
- The Board’s proactive strategy to explore new businesses/assets and diversify to improve financial performance.
- Continued focus on cost control measures to navigate the current economic environment.
- The expectation that the mobile telecommunication equipment servicing business will remain challenging in H1 FY2025.
From a professional standpoint, WATTA’s strategic pivot is commendable and necessary given the structural shifts in its traditional market. The success of their diversification efforts and their ability to identify profitable new ventures will be key determinants of their future trajectory. It’s a challenging path, but one that many companies in evolving industries must undertake.
What are your thoughts on WATTA’s Q1 2025 performance? Do you think the company can successfully pivot and find new growth avenues given the evolving tech landscape? Share your views in the comments below!
