Greetings, fellow investors and market watchers!
Today, we’re diving deep into the latest financial performance of ONLY WORLD GROUP HOLDINGS BERHAD, a company that has become synonymous with leisure and entertainment in Malaysia. The recent release of their unaudited condensed consolidated interim financial report for the fourth quarter and full financial year ended 30 June 2025 offers a comprehensive look at their journey through a dynamic market landscape. What immediately stands out is the company’s ability to navigate challenges while strategically positioning itself for future growth, evidenced by a return to profitability in the current quarter and an ambitious outlook on the thriving tourism sector.
A Quarter of Recovery Amidst Full-Year Challenges
ONLY WORLD GROUP HOLDINGS BERHAD concluded its financial year with a mixed bag of results, showcasing resilience in the fourth quarter (Q4 FY2025) despite a challenging full financial year. The company managed to reverse its previous quarter’s loss, posting a profit before tax of RM0.22 million in Q4 FY2025. This performance is particularly noteworthy given the broader economic currents and evolving consumer sentiments. However, the full financial year (FY2025) still reflects a loss before tax, highlighting the persistent operational pressures faced throughout the period.
Q4 FY2025 Performance: A Glimmer of Recovery
For the three months ended 30 June 2025, ONLY WORLD GROUP HOLDINGS BERHAD demonstrated a slight revenue increase and a significant turnaround in profit compared to the immediate preceding quarter. When compared against the same period last year, the picture is one of modest top-line growth but compressed profitability.
Q4 FY2025 (3 Months Ended 30 June 2025)
- Revenue: RM37,231,000
- Profit Before Taxation: RM216,000
- Profit After Taxation (Attributable to Owners): RM726,000
- Basic Earnings Per Share: 0.16 sen
Q4 FY2024 (3 Months Ended 30 June 2024)
- Revenue: RM36,851,000
- Profit Before Taxation: RM883,000
- Loss After Taxation (Attributable to Owners): (RM905,000)
- Basic Earnings Per Share: (0.20) sen
While revenue saw a marginal 1% increase, the profit before taxation for Q4 FY2025 was lower by 75% compared to the same period last year. This was primarily attributed to an increase in operating costs, including rental, staff, utilities, and depreciation, necessary to support the opening of new Jungle Gym playlands. Furthermore, a one-off impairment loss of trade receivables amounting to RM1.17 million also impacted the bottom line. Despite these challenges, the company successfully transitioned from a loss after taxation to a profit after taxation attributable to owners, a positive sign of operational recovery.
Full Financial Year FY2025: A Year of Investment and Headwinds
The cumulative performance for the 12 months ended 30 June 2025 tells a story of significant investment in expansion and facing broader economic headwinds.
FY2025 (12 Months Ended 30 June 2025)
- Revenue: RM139,499,000
- Loss Before Taxation: (RM73,000)
- Loss After Taxation (Attributable to Owners): (RM2,248,000)
- Basic Earnings Per Share: (0.49) sen
FY2024 (12 Months Ended 30 June 2024)
- Revenue: RM140,370,000
- Profit Before Taxation: RM9,078,000
- Profit After Taxation (Attributable to Owners): RM4,787,000
- Basic Earnings Per Share: 1.06 sen
For the full financial year, overall revenue saw a slight decrease of 1% compared to the previous financial year. More notably, the company reported a loss before taxation for FY2025, a significant shift from the profit recorded in FY2024. This decline was largely due to increased operating costs such as staff, utilities, and depreciation expenses incurred during the expansion of new Jungle Gym playlands, alongside higher lease liabilities and the aforementioned one-off impairment loss on trade receivables.
Performance Against Immediate Preceding Quarter (Q3 FY2025)
Looking at the sequential performance, the Group’s Q4 FY2025 showed a strong rebound from the immediate preceding quarter (Q3 FY2025).
Q4 FY2025 (3 Months Ended 30 June 2025)
- Revenue: RM37,231,000
- Profit Before Taxation: RM216,000
Q3 FY2025 (3 Months Ended 31 March 2025)
- Revenue: RM31,700,000
- Loss Before Taxation: (RM2,592,000)
Revenue increased by 17% (RM5.53 million) from the immediate preceding quarter. This growth was primarily fueled by additional sales from newly opened Jungle Gym Playlands and a surge in school trips during the school holiday seasons in both Malaysia and Singapore. This positive momentum allowed the Group to reverse the loss incurred in Q3 FY2025, achieving a profit in the current quarter.
Segmental Performance: A Tale of Two Operations
The Group’s performance is driven by two main segments: Amusement and Recreation Operations, and Food Service Operations.
| Segment (12 Months Ended 30 June) | FY2025 (RM’000) | FY2024 (RM’000) | Change (RM’000) | Percentage Change |
|---|---|---|---|---|
| Amusement and Recreation Operations (Revenue) | 64,846 | 54,009 | +10,837 | +20.06% |
| Food Service Operations (Revenue) | 65,201 | 72,903 | -7,702 | -10.56% |
The Amusement and Recreation Operations segment was a key growth driver, recording a significant increase in revenue of RM10.84 million (20.06%) for the full financial year. This robust growth was largely due to the addition of eight new Jungle Gym Playland outlets and the reopening of Pedas Adventure Park during the period, showcasing the success of the Group’s expansion strategy in this area.
Conversely, the Food Service Operations segment experienced a decrease in revenue of RM7.70 million (10.56%) for the full financial year. This was primarily attributed to lower footfall at the Group’s food and beverage outlets in Genting Highlands and a subdued sales momentum, even after festive seasons, reflecting more cautious consumer sentiments.
Financial Health and Cash Flow
From a balance sheet perspective, total assets for the Group remained relatively stable at RM418.34 million as at 30 June 2025, compared to RM420.07 million in the previous year. Total equity also saw a slight decrease from RM229.77 million to RM227.52 million.
A closer look at the cash flow statement reveals that net cash generated from operating activities for the full financial year decreased to RM28.16 million from RM40.41 million in the preceding year. Net cash used in investing activities increased due to higher purchases of property, plant, and equipment (RM22.74 million in FY2025 vs RM14.99 million in FY2024), indicating continued investment in their infrastructure and expansion. Overall, cash and cash equivalents at the end of the financial year decreased to RM57.41 million from RM66.47 million, reflecting the significant investments and operating costs incurred during the period.
Risks and Prospects: Riding the Tourism Wave
Looking ahead, ONLY WORLD GROUP HOLDINGS BERHAD is strategically poised to capitalize on the encouraging trends in Malaysia’s tourism sector. The “Visit Malaysia 2026” campaign, launched by Tourism Malaysia in January 2025, sets ambitious targets of 35.6 million tourists and RM147.1 billion in tourism receipts. This initiative provides a strong tailwind for the Group’s amusement and recreation businesses.
Recent data from Tourism Malaysia paints an optimistic picture, with international visitor arrivals increasing by approximately 20.40% from January to May 2025 compared to the same period in 2024. Domestic tourism is also thriving, with a 18.94% increase in domestic visitors in Q1 2025. These rising numbers are expected to directly benefit the Group’s diverse leisure offerings.
The company is committed to leveraging its extensive industry experience to seize these growth opportunities, safeguard its market position, and enhance business performance. Their strategy includes continued expansion of popular offerings like the Jungle Gym playlands and adapting to evolving consumer preferences.
However, the Group also acknowledges potential challenges. The increase in operating costs, coupled with higher lease liabilities and the occasional need for impairment provisions, could impact profitability. Maintaining cost efficiency while investing in growth will be crucial. Furthermore, the performance of their Food Service Operations remains susceptible to footfall variations at key locations and broader consumer sentiment, requiring agile management and innovative strategies to drive sales.
Summary and Investment Considerations
ONLY WORLD GROUP HOLDINGS BERHAD’s latest financial report reveals a company undergoing a period of strategic investment and adaptation. While the full financial year FY2025 saw a shift to a loss before tax, the recovery in the fourth quarter underscores the management’s ability to drive sequential improvements. The strong performance of the Amusement and Recreation segment, bolstered by expansion into new Jungle Gym playlands, demonstrates a clear growth driver. The challenges faced by the Food Service segment and the overall increase in operating expenses will require continued strategic focus.
The positive outlook for Malaysia’s tourism sector provides a robust foundation for future growth, and the Group appears committed to capitalizing on these opportunities. Their efforts to enhance business performance and expand their offerings align well with the anticipated surge in visitor arrivals.
- Increased operating costs (staff, utilities, rental, depreciation) are a persistent factor impacting profitability.
- The performance of the Food Service Operations segment remains sensitive to consumer footfall and sentiment.
- Higher lease liabilities and the potential for one-off impairment losses introduce financial volatility.
- The significant decrease in net cash generated from operations for the full year requires close monitoring despite the positive cash and bank balance at year-end.
From a blogger’s perspective, this report highlights the delicate balance between aggressive expansion and maintaining profitability in the leisure and entertainment sector. The Q4 turnaround is certainly a positive signal, but the full-year figures remind us of the significant costs associated with growth and operational challenges. Investors will likely be keen to see if the momentum from Q4 can be sustained and translate into consistent profitability in the upcoming financial year, especially with the “Visit Malaysia 2026” campaign on the horizon.
What are your thoughts on ONLY WORLD GROUP HOLDINGS BERHAD’s strategic direction? Do you believe the booming tourism sector will significantly offset the rising operational costs and lead to stronger financial performance in the coming quarters? Share your insights in the comments below!
