|Revenue (mil)||Loss after tax (mil)|
Tuesday, 7 June 2011
XOX: Talk is cheap?
Despite making losses since 2007, XOX's IPO was oversubscribed by 13.2 times. This is sort of expected in any IPO. XOX is a mobile virtual network operator which rides on Celcom's network infrastructure, and it will launch a new service "e-wallet" this year.
According to XOX's CEO, the company "expects" revenue to surge to RM249.5mil in FY11 from a mere RM20.1 mil in FY10. He also "expects" a NET profit of RM19.7mil in FY11 compared to net LOSS of RM15.9mil in FY10.
This is XOX's financial highlights from its prospectus
The company lose more and more money year after year, and suddenly it expects to make RM19.7million a year. Is it due to the new service or the mobile prepaid service? Anyone knows how good is their mobile phone package & service?
Is the revenue & profit forecast a "scientific" expectation or a "fairy-tale" expectation? Or "Green Packet-like" expectation?