Core Instructions: As a senior blogger, I will now directly output the content based on XOX Technology Berhad’s latest quarterly report, formatted for an English blog HTML writing.
XOX Technology Berhad’s Q3 2025: Navigating Headwinds with Strategic Diversification
Greetings, fellow investors and tech enthusiasts! Today, we’re diving into the latest financial performance of XOX Technology Berhad for the quarter ended 31 March 2025 (Q3 2025). This report offers a crucial glimpse into the Group’s operational health and strategic direction amidst a dynamic market landscape.
While the quarter saw a dip in revenue and profit compared to the immediate preceding quarter, XOX Technology Berhad is actively laying the groundwork for future growth, notably through its new E-Hailing application in Pakistan. It’s important to note upfront that due to a change in the financial year end from 31 March to 30 June, direct year-on-year comparative figures for the profit and loss statement are not available. Our analysis will therefore focus on quarter-on-quarter performance and the broader financial health and strategic outlook.
Core Data Highlights: A Closer Look at Performance
Let’s break down the key financial figures for XOX Technology Berhad’s Q3 2025 and see how they stack up against the immediate preceding quarter (Q2 2025).
Q3 2025 (Ended 31 March 2025)
Revenue: RM35.6 million
Profit Before Tax (PBT): RM5.6 million
Net Profit: RM3.0 million
Basic Earnings Per Share (EPS): 0.16 sen
Q2 2025 (Ended 31 December 2024)
Revenue: RM40.8 million
Profit Before Tax (PBT): RM7.7 million
Net Profit: RM5.2 million
Basic Earnings Per Share (EPS): 0.28 sen
As the comparison above shows, the Group experienced a decline in performance this quarter. Revenue decreased by approximately 13% from RM40.8 million in Q2 2025 to RM35.6 million in Q3 2025. This naturally led to a reduction in profitability, with Profit Before Tax falling from RM7.7 million to RM5.6 million.
Segmental Performance Breakdown
The report attributes this decline primarily to the performance of its core business segments:
| Segment | Q3 2025 Revenue (RM’000) | Q2 2025 Revenue (RM’000) | Revenue Change (%) | Q3 2025 PBT/LBT (RM’000) | Q2 2025 PBT/LBT (RM’000) | PBT/LBT Change (%) |
|---|---|---|---|---|---|---|
| Mobile Solution Services | 34,800 | 39,900 | -13% | 6,500 | 8,600 | -24% |
| Cloud Solution Services | 900 | 1,000 | -10% | (1,000) (Loss) | (900) (Loss) | +10% (Loss increased) |
The Mobile Solution segment, which contributes a significant 98% of the Group’s revenue, saw its revenue decrease from RM39.9 million to RM34.8 million. This was mainly due to a decrease in SMS broadcast volume from banking and corporate clients in Pakistan. Consequently, its Profit Before Tax also reduced by 24%. The Cloud Solution segment experienced a modest revenue decrease and an increase in its loss before tax, attributed to a “slower market.”
Financial Status: A Glimpse at the Balance Sheet
Despite the quarter’s operational challenges, the Group’s cash and cash equivalents have shown a healthy increase. As at 31 March 2025, total cash and cash equivalents stood at RM28.3 million, up from RM19.9 million as at 30 June 2024. This improvement in liquidity provides the Group with a stronger financial buffer.
Lease liabilities, categorized as borrowings, saw a slight decrease from RM873k as at 30 June 2024 to RM850k as at 31 March 2025, comprising RM248k in current liabilities and RM602k in non-current liabilities.
Risks and Strategic Prospects
While the recent performance indicates some headwinds, XOX Technology Berhad is not standing still. The management remains focused on capital efficiency and sustainable growth, with strategic investments aimed at scaling its mobile platform, penetrating new markets, and enhancing customer experience.
A New Frontier: E-Hailing in Pakistan
A significant development highlighted in the report is the successful development and launch of a new software application for the intermediation business, specifically in the E-Hailing sector in Pakistan. This initiative is designed to enable users to book public transportation services through electronic platforms, aligning with global digital mobility trends. This move is expected to not only enhance the financial performance of its Pakistan operations by tapping into a growing demand but also contribute to the Group’s broader strategic objectives by expanding revenue streams and reducing reliance on existing business segments, thereby strengthening business resilience and diversification.
However, potential investors should also be aware of the Group’s ongoing legal challenges. These include a dispute regarding copyright infringement in Pakistan, a matter concerning the Sindh Workers’ Welfare Fund, and a civil suit filed by the Company against former directors and employees involving allegations of misuse of software products and breach of fiduciary duties.
Summary and Outlook
Summary and
XOX Technology Berhad’s Q3 2025 results reflect a challenging quarter, primarily influenced by a slowdown in its core mobile solution services in Pakistan. However, the Group’s improved cash position and, more importantly, its proactive strategic shift towards diversification, particularly with the launch of the E-Hailing application in Pakistan, signal a forward-looking approach. This diversification effort could be a key driver for future growth, aiming to reduce dependence on existing segments and tap into new, high-growth markets.
Key risk points to observe include:
- The Group’s significant reliance on its mobile solution segment (98% of revenue), making it susceptible to market fluctuations in that area.
- The ongoing legal litigations, which could incur further costs or impact operational focus.
- The ability of the new E-Hailing venture to gain significant market traction and contribute meaningfully to the Group’s financial performance.
Looking ahead, the success of XOX Technology Berhad will likely hinge on its ability to effectively execute its diversification strategies and navigate the competitive landscape of new markets, while simultaneously managing its core business and existing legal challenges. The Group’s commitment to strategic investments and enhancing customer experience suggests a path towards long-term shareholder value.
Final Thoughts
From my perspective, XOX Technology Berhad is at an interesting juncture. The Q3 dip is a reminder of market volatilities, but the strategic pivot towards new ventures like the E-Hailing service in Pakistan demonstrates a commendable effort to adapt and seek new avenues for growth. This is a crucial step for any technology company in today’s fast-evolving digital economy.
What do you think? Can XOX Technology Berhad’s strategic diversification efforts successfully offset current headwinds and drive sustainable growth in the coming quarters? Share your thoughts and insights in the comments section below!
