Hi folks,
Below is related post from the star online, posted yesterday on XOX, which they expect to return their profit this year..hmm..personally, it is really a big target to achieve as compared to previous year performance..well, nothing is impossible if they do the right thing..
So below for your perusal..happy reading!
KUALA LUMPUR: ACE Market-bound XOX Bhd expects to return to profitability this financial year ending Dec 31, 2011 (FY11) and grow its revenue more than 10 times on an increase in subscribers, higher average revenue per user (ARPU) and the launch of more services.
According to its prospectus, XOX, a full-fledged mobile virtual network operator (MVNO), expects a net profit of RM19.7mil for the current FY11 against a net loss of RM15.9mil posted a year ago. It also anticipates revenue to surge more than 10 times to RM249.5mil from RM20.1mil achieved in FY10.
“The industry is huge and it is still growing. We need to get the subscribers and will be launching more services going forward. Without the revenue, you can't get the net profit,” chief executive officer Ng Kok Heng said after launching its prospectus yesterday.
XOX, which is slated for a listing on June 10, currently has more than 400,000 subscribers and targets to hit one million subscribers this year.
The telco forecast that there would be 1.77 million starter packs sold to distributors at an average selling price of RM8.81 per starter pack for the current year.
“In the past three years, we have garnered a significant 20% market share in the MVNO space in the country and built a reputation for introducing innovative and customer-centric services with unbeatable value,” Ng said.
He said as an MVNO, XOX did not have to invest heavily in infrastructure. XOX currently rides on Celcom Axiata Bhd's network infrastructure.
On ARPU, Ng said XOX's average ARPU was about RM20 per month, comprising mostly pre-paid customers. However, he said with more services such e-wallet, an electronic payment service to be launched this year, its ARPU was set to increase. XOX expects the new services as well as wider availability of its products nationwide to help draw more subscribers to its stable.
“We believe that it (e-wallet) will be a lifestyle enhancer for our consumers by bringing additional convenience in making payments and various deals,” he said.
XOX's IPO entails the public issue of 46.8 million new ordinary shares at an initial public offering (IPO) price of 80 sen each, raising RM37.4mil in proceeds for the group. Of the 46.8 million public issue shares, 29.8 million shares will be allocated for private placement for eligible identified investors, 9.5 million shares to be allocated to eligible directors, employees and business associates of XOX and 7.5 million for the public.
Asked if the IPO shares of 10 sen par value to be issued at 80 sen were expensive, Ng said it was “relative”.
XOX plans to allocate RM23.2mil from the proceeds of its IPO for working capital, RM6.2mil for capital expenditure, RM5mil for payment to creditors and the balance RM3mil for listing expenses.
