MobilityOne (MBO) Trading update summary

Financial performance and key metrics

• Unaudited FY 2024 revenue was £230.2 million, down from £241.67 million in 2023, mainly due to softer demand in Malaysia's mobile prepaid and bill payment business.

• Loss after tax increased to £3.45 million from £1.41 million in 2023, driven by lower sales, higher administrative and marketing expenses, increased finance costs, and losses from the associated company Sincere Acres Sdn Bhd.

• Cash and cash equivalents rose to £3.98 million, while secured loans and borrowings increased to £7.07 million, reflecting higher costs and administrative expenses.

Sector trends and business environment

• Malaysian telecom sector saw a decline in mobile prepaid revenues, with Maxis and CelcomDigi reporting decreases of 2.1% and 3.5%, respectively.

• The business environment remains challenging, with intense competition and price pressures impacting revenue trends.

Strategic transactions and outlook

• Two major pending transactions: disposal of OneShop Retail Sdn Bhd and a proposed joint venture with Super Apps Holdings Sdn Bhd, and the acquisition of Hati via Sincere.

• Completion of the OneShop disposal and joint venture is now independent of the TETE merger, but future payments and share issues remain contingent on the merger's completion.

• The second tranche payment for the Hati acquisition has been extended to 31 August 2025, with a 10% annual interest on late payments.

• Delays or non-completion of the TETE merger could materially impact financial position and growth initiatives.