XOX Networks Berhad Q1 2026 Financial Report: Key Details for Investors

Overview

XOX Networks Berhad has released its unaudited results for the first quarter ended 31 March 2026. The Group reported a challenging start to the year, with a significant drop in revenue and continued losses, raising concerns about its trajectory and outlook. Investors should pay close attention to several developments that could impact share value.

Financial Highlights

• Revenue: RM1.12 million for Q1 2026, a sharp decrease of 56% from RM2.56 million in the preceding quarter. This drop was mainly due to fewer projects secured in the event management segment.
• Loss Before Tax: RM1.05 million, an improvement from the previous quarter’s loss (RM4.99 million), but still a negative result.
• Loss After Tax: RM1.09 million.
• Basic Loss Per Share: (0.10 sen).
• Net Assets Per Share: RM0.03 at 31 March 2026, compared to RM1.13 as at 31 December 2025.
• Fair Value Loss on Other Investments: RM315,000 recognized in Q1 2026.
• Cash and Cash Equivalents: RM1.97 million, down from RM2.43 million at the start of the year.
• Accumulated Losses: RM11.80 million, up from RM10.71 million at end-2025.
• Investment in Quoted Shares: Market value RM4.72 million.
• No Dividend Proposed: No dividend has been declared for the quarter.

Segment Performance

The Group operates three main segments: Event Management, Digital & Media Management, and Financial Solutions. For Q1 2026:

• Event Management: Revenue RM250,000, Loss Before Tax RM662,000. This segment suffered due to limited projects.
• Digital & Media Management: Revenue RM85,000, Loss Before Tax RM23,000.
• Financial Solutions: Revenue RM630,000, Profit Before Tax RM536,000. This segment was the only one profitable in the quarter.
• Others: Revenue RM159,000, Loss Before Tax RM905,000.

Compared to Q1 2025, overall revenue and gross profit have dropped, with event management segment most affected.

Cash Flow and Asset Position

• Net Cash Generated from Operations: RM634,000.
• Net Cash Used in Investing Activities: RM1 million, mainly for purchase of property, plant and equipment.
• Net Cash Used in Financing Activities: RM96,000, mainly from lease repayments.
• Decrease in Cash and Cash Equivalents: RM462,000.
• No Bank Borrowings or Debt Securities: The Group has no outstanding borrowings or debt securities.

Corporate Actions & Material Events

• Private Placement: The Board approved an extension for the full utilisation of the balance proceeds raised from the Private Placement for another twelve months. No new corporate proposals have been announced.
• No Material Litigation: The Group is not currently involved in any material legal proceedings.
• No Dividend: No dividend has been proposed for this quarter.
• No Significant Changes: No changes in group composition, capital commitments, or contingent assets/liabilities.
• No Profit Forecast or Guarantee: The Group did not provide any profit forecast or guarantee for the period.

Future Prospects and Strategic Focus

The Group acknowledges ongoing challenges in the event industry, especially concert management, including:

• Sourcing sustainable business models.
• Securing funding and rebuilding audience trust.
• Artist availability and competition among venues.
• Compliance with evolving regulations and sustainability requirements.
• The Group intends to shift focus towards owning intellectual property associated with event concepts, brands, and content, and will explore more corporate events (e.g., product launches, appreciation events).
• Further expansion and innovation are planned for the Digital & Media Management and Financial Solutions segments.

Key Risks and Shareholder Concerns

• Continued Losses: The Group remains loss-making, with accumulated losses increasing. This may pressure the share price.
• Revenue Volatility: The sharp drop in revenue and reliance on event management projects highlight vulnerability to economic cycles and project pipeline.
• Asset Value Erosion: Fair value loss on quoted investments and decrease in net assets per share may concern investors.
• Cash Position: Decreasing cash reserves could impact future operations and investment ability.
• Strategic Shifts: The move towards IP ownership and corporate events is positive, but execution risks remain.
• No Dividend: Lack of dividend payout may affect investor sentiment.
• Price Sensitivity: Any further deterioration in financial performance, delays in strategic execution, or failure to secure new projects could negatively impact share prices.

Conclusion

The Q1 2026 results signal ongoing challenges for XOX Networks Berhad, with continued losses, declining revenue, and strategic uncertainty in its event management segment. Investors should monitor the Group’s efforts to diversify and innovate, as well as its cash position and asset values. The absence of dividends, coupled with the shrinking net assets per share, are critical factors that may influence share price movements in the near term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult financial professionals before making any investment decisions. The information is based on unaudited financial statements and may be subject to further revision.

Versi Bahasa Malaysia

Laporan Kewangan XOX Networks Berhad Q1 2026: Analisis Terperinci untuk Pelabur

Gambaran Keseluruhan

XOX Networks Berhad telah menerbitkan keputusan tidak diaudit bagi suku pertama berakhir 31 Mac 2026. Kumpulan mencatatkan permulaan tahun yang mencabar dengan penurunan pendapatan yang ketara dan kerugian berterusan, menimbulkan kebimbangan mengenai hala tuju dan prospek masa depan. Pelabur perlu memberi perhatian kepada beberapa perkembangan yang boleh memberi kesan kepada nilai saham.

Sorotan Kewangan

• Pendapatan: RM1.12 juta untuk Q1 2026, penurunan mendadak sebanyak 56% dari RM2.56 juta pada suku sebelumnya.
• Kerugian Sebelum Cukai: RM1.05 juta, lebih baik daripada kerugian suku sebelumnya (RM4.99 juta), tetapi masih negatif.
• Kerugian Selepas Cukai: RM1.09 juta.
• Kerugian Asas Setiap Saham: (0.10 sen).
• Aset Bersih Setiap Saham: RM0.03 pada 31 Mac 2026, berbanding RM1.13 pada 31 Disember 2025.
• Kerugian Nilai Pasaran Pelaburan: RM315,000 diiktiraf pada Q1 2026.
• Tunai dan Setara Tunai: RM1.97 juta, turun dari RM2.43 juta pada awal tahun.
• Kerugian Terkumpul: RM11.80 juta, naik dari RM10.71 juta pada akhir 2025.
• Pelaburan dalam Saham Tersenarai: Nilai pasaran RM4.72 juta.
• Tiada Dividen Dicadangkan: Tiada dividen diumumkan untuk suku ini.

Prestasi Segmen

• Pengurusan Acara: Pendapatan RM250,000, Kerugian Sebelum Cukai RM662,000. Segmen ini terjejas akibat projek terhad.
• Pengurusan Digital & Media: Pendapatan RM85,000, Kerugian Sebelum Cukai RM23,000.
• Penyelesaian Kewangan: Pendapatan RM630,000, Untung Sebelum Cukai RM536,000. Segmen ini satu-satunya yang untung pada suku ini.
• Lain-lain: Pendapatan RM159,000, Kerugian Sebelum Cukai RM905,000.

Berbanding Q1 2025, pendapatan dan keuntungan kasar keseluruhan telah menurun, dengan segmen pengurusan acara paling terjejas.

Aliran Tunai dan Kedudukan Aset

• Tunai Bersih Dihasilkan dari Operasi: RM634,000.
• Tunai Bersih Digunakan untuk Pelaburan: RM1 juta, terutamanya untuk pembelian aset tetap.
• Tunai Bersih Digunakan untuk Kewangan: RM96,000, terutamanya bayaran sewa.
• Peningkatan Kerugian Tunai dan Setara Tunai: RM462,000.
• Tiada Pinjaman Bank atau Sekuriti Hutang: Kumpulan tidak mempunyai pinjaman atau sekuriti hutang tertunggak.

Tindakan Korporat & Peristiwa Penting

• Penempatan Swasta: Lembaga telah meluluskan lanjutan masa untuk penggunaan penuh baki hasil penempatan swasta selama dua belas bulan lagi. Tiada cadangan korporat baru diumumkan.
• Tiada Litigasi Material: Kumpulan tidak terlibat dalam sebarang prosiding undang-undang material.
• Tiada Dividen: Tiada dividen dicadangkan untuk suku ini.
• Tiada Perubahan Besar: Tiada perubahan dalam komposisi kumpulan, komitmen modal, atau aset/liabiliti kontingen.
• Tiada Ramalan Untung atau Jaminan: Kumpulan tidak mengemukakan sebarang ramalan untung atau jaminan untuk tempoh ini.

Prospek Masa Depan dan Fokus Strategik

• Mencari model perniagaan yang mampan.
• Mendapatkan pembiayaan dan membina semula kepercayaan penonton.
• Ketersediaan artis dan persaingan antara tempat acara.
• Pematuhan kepada peraturan dan keperluan kelestarian.
• Kumpulan akan beralih fokus kepada pemilikan harta intelek berkaitan konsep acara, jenama dan kandungan, serta meneroka lebih banyak acara korporat (cth: pelancaran produk, acara penghargaan).
• Pengembangan dan inovasi lebih lanjut dirancang untuk segmen Pengurusan Digital & Media serta Penyelesaian Kewangan.

Risiko Utama dan Kebimbangan Pemegang Saham

• Kerugian Berterusan: Kumpulan masih mencatat kerugian, dengan kerugian terkumpul meningkat, berpotensi menekan harga saham.
• Volatiliti Pendapatan: Penurunan mendadak pendapatan dan pergantungan kepada projek pengurusan acara menunjukkan kerentanan kepada kitaran ekonomi dan aliran projek.
• Pengurangan Nilai Aset: Kerugian nilai pasaran pelaburan dan pengurangan aset bersih setiap saham boleh menimbulkan kebimbangan pelabur.
• Kedudukan Tunai: Penurunan rizab tunai boleh menjejaskan operasi dan keupayaan pelaburan masa depan.
• Peralihan Strategik: Peralihan ke pemilikan IP dan acara korporat adalah positif, tetapi risiko pelaksanaan tetap ada.
• Tiada Dividen: Ketiadaan pembayaran dividen boleh menjejaskan sentimen pelabur.
• Sensitiviti Harga: Sebarang kemerosotan lanjut dalam prestasi kewangan, kelewatan pelaksanaan strategik atau kegagalan mendapatkan projek baru boleh menjejaskan harga saham.

Kesimpulan

Keputusan Q1 2026 menunjukkan cabaran yang berterusan bagi XOX Networks Berhad, dengan kerugian berterusan, penurunan pendapatan dan ketidakpastian strategik dalam segmen pengurusan acara. Pelabur perlu memantau usaha Kumpulan untuk mempelbagaikan dan berinovasi, serta kedudukan tunai dan nilai asetnya. Ketiadaan dividen dan pengurangan aset bersih setiap saham adalah faktor kritikal yang boleh mempengaruhi pergerakan harga saham dalam masa terdekat.

Penafian: Artikel ini adalah untuk tujuan maklumat sahaja dan tidak merupakan nasihat pelaburan. Pelabur harus menjalankan penyelidikan sendiri atau berunding dengan profesional kewangan sebelum membuat keputusan pelaburan. Maklumat adalah berdasarkan penyata kewangan tidak diaudit dan boleh tertakluk kepada semakan lanjut.

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