A Deep Dive into Parlo’s Q2 2025 Results: Travel Rebounds but Investments Weigh Down Profits
Parlo Berhad, a veteran in Malaysia’s travel industry, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a complex picture: while the core travel business shows signs of a sequential rebound, the company’s overall financial performance was significantly impacted by external market forces, particularly its investments in quoted shares. Let’s break down the key figures and what they mean for the company moving forward.
Core Data Highlights
A Tale of Two Quarters: Revenue and Profitability
When comparing this quarter to the same period last year, Parlo faced some headwinds. Revenue saw a slight dip, but the more significant story is the widening of losses. However, it’s crucial to understand the ‘why’ behind these numbers.
For Q2 2025, Parlo reported a revenue of RM18.70 million and a loss before tax of RM3.19 million. The report explicitly states that this loss includes a substantial unrealised loss of RM2.37 million from its investments in quoted shares, which heavily skewed the bottom line.
Q2 2025 Results
- Revenue: RM 18.70 million
- Loss Before Tax (LBT): (RM 3.19 million)
- Loss Attributable to Owners: (RM 3.27 million)
- Basic Loss Per Share (LPS): (0.54 sen)
Q2 2024 Results (Comparison)
- Revenue: RM 20.92 million
- Loss Before Tax (LBT): (RM 1.09 million)
- Loss Attributable to Owners: (RM 1.16 million)
- Basic Loss Per Share (LPS): (0.19 sen)
While the year-over-year comparison shows a 10.61% decrease in revenue and a significant increase in losses, a different story emerges when we look at the performance against the immediate preceding quarter (Q1 2025). Revenue actually grew by 16.09% from RM16.11 million in Q1 2025, driven by a higher number of tour departures. This indicates that the core travel operations are gaining momentum.
Segment Breakdown: Travel Takes Center Stage
The latest report clarifies the Group’s operational focus. The Travel and Tours segment is now the sole revenue generator, while the Trading segment, which previously contributed, recorded zero revenue this quarter. This sharpens the focus on the performance of its core travel business.
| Business Segment | Revenue (Q2 2025) | Revenue (Q2 2024) |
|---|---|---|
| Travel and Tours | RM 18,701,000 | RM 19,175,000 |
| Trading | RM 0 | RM 1,746,000 |
A Look at Financial Health
The company’s balance sheet reflects the recent challenges. Total assets decreased to RM25.61 million from RM36.50 million at the end of 2024, largely due to a reduction in trade receivables and the value of its quoted share investments. Consequently, net assets per share have slightly decreased from RM0.04 to RM0.03. On a positive note, net cash from operating activities for the year-to-date turned positive at RM133,000, a significant improvement from a negative RM2.03 million in the same period last year, suggesting better management of working capital.
Charting the Course Ahead: Risks and Strategic Focus
Despite the current financial results, Parlo’s management has laid out a clear strategy for the future, leveraging its 50 years of experience in the industry. The company is optimistic about the market outlook and is focusing on two key areas for growth.
First, it aims to optimize its leisure travel offerings by introducing a wider range of products across multiple distribution channels to meet evolving consumer preferences. Second, and more importantly, the Group is positioning its corporate travel segment as a key future growth driver. By targeting a diverse range of clients from dynamic SMEs to large multinational corporations, Parlo intends to provide efficient, cost-effective, and integrated travel solutions. This strategic pivot aims to transform the corporate travel segment into a cornerstone of the business.
However, the path forward is not without risks. The significant impact of unrealised investment losses highlights the company’s vulnerability to stock market volatility, which is outside its core operational control. The travel industry also remains highly competitive, and the success of its strategic initiatives will depend heavily on flawless execution.
Summary and Investment Recommendations
Parlo’s Q2 2025 report presents a nuanced view. The headline figures show widening losses, but this is primarily due to non-operational, unrealised losses on investments. Beneath the surface, the core travel business demonstrates operational resilience with a healthy quarter-on-quarter revenue increase. The company’s clear strategic direction to build its corporate travel segment is a promising development for long-term growth. As an investor, it is essential to look beyond the bottom-line loss and evaluate the health of the underlying business and the viability of its future strategy.
- Impact of Non-Core Investments: The significant unrealised losses from quoted shares highlight a key risk to profitability that is tied to market sentiment rather than operational performance.
- Execution of Corporate Travel Strategy: The success of the pivot towards the corporate travel segment will be crucial for driving future revenue and profitability.
- Core Business Recovery: Monitor the revenue and operational profitability of the Travel and Tours segment in coming quarters to gauge the strength of the post-pandemic travel recovery.
- Upcoming Corporate Exercises: The proposed share consolidation and rights issue will impact the company’s capital structure and are important events for shareholders to watch.
Final Thoughts
From my perspective, this report paints a mixed picture. The operational resilience in the travel segment, especially the quarter-on-quarter revenue growth, is encouraging. However, the substantial impact of investment losses on the bottom line is a concern. The company’s strategic clarity in focusing on the high-potential corporate travel market is a positive step, but execution will be paramount.
What are your thoughts on Parlo’s strategic focus on corporate travel? Do you believe it can offset the volatility from their investment activities? Share your views in the comments below!
