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

Revenue (mil) Loss after tax (mil)

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?


  1. u apply its IPO???

    don't know how they actually cook up the prospectus, how to attract ppl to buy without profit????

    Bursa Malaysia allow this to be listed?!!

    M'sia BOLEH!!!

  2. I didn't apply. May be it will be like MClean. Ppl lose confidence in IPO at the moment. UOA Dev I think should do well but end up like that also.

  3. Q12011 results Rev 12.7m, net loss 1.66m.

    On track to be better than 2010 but what about the "expected" 249.5m Rev & 19.7 net profit for FY2011? Fairy tale? Wonder at what price it will open tmr...

  4. IPO 0.80, Open with day high 0.73, Close with day low 0.52. Down 35% on its debut.