LONDON: MobilityOne Limited (AIM: MBO), a leading provider of e-commerce infrastructure payment solutions and platforms, announced its audited financial results for the year ended December 31, 2024, revealing a decline in revenue and an increased net loss amid softening demand in its core Malaysian market.
The company reported a 4.74% drop in revenue to £230.23 million ($293 million) compared to £241.67 million ($307 million) in 2023. The decline was primarily attributed to weaker performance in mobile prepaid airtime reloads and bill payment services through banking channels, electronic data capture terminals, and third-party e-wallet applications in Malaysia. Major telecom operators Maxis and CelcomDigi also reported declines in prepaid revenues, reflecting broader sector challenges due to competitive pricing pressures.
MobilityOne’s operating loss widened to £2.6 million ($3.3 million) from £1.05 million ($1.33 million) in 2023, while its net loss surged to £3.45 million ($4.38 million), up from £1.41 million ($1.79 million) the previous year. The increased losses were driven by lower sales, higher administrative and marketing expenses, elevated finance costs, and losses from its 49%-owned associate company, Sincere Acres Sdn Bhd, and its healthcare subsidiary, Hati International Sdn Bhd.
Segment Performance and Strategic Initiatives
Despite the downturn in its core business, MobilityOne saw growth in its international remittance services, with higher transaction volumes fueled by increased demand for cross-border transfers. However, its electronic payment and e-money services in Malaysia remained modest, capturing only a small share of the rapidly growing e-payment market, where transactions rose 19% year-over-year.
In Brunei, the company secured regulatory approval to operate electronic payment and merchant acquiring services, though operations there remain minimal. Meanwhile, MobilityOne exited the Philippine market after discontinuing operations.
Expansion in Health Technology and Pending Deals
The company is making strides in health technology through its subsidiary MobilityOne Sdn Bhd and associated firm Hati, securing contracts with hospitals in Malaysia and Thailand to implement digital payment and hospital information systems. These projects align with Malaysia’s push to digitize half of its government health clinics by 2030.
Two major pending transactions could significantly impact MobilityOne’s future financial performance:
- Disposal of OneShop Retail and Joint Venture with Super Apps – A delayed merger involving U.S.-based TETE Technologies could unlock £10.26 million ($13 million) in payments to MobilityOne if completed by August 20, 2025.
- Acquisition of Hati via Sincere – The company has deferred a RM28 million ($5.9 million) payment to August 31, 2025, with potential interest charges if delayed further.
Outlook and Turnaround Strategy
Facing a challenging business environment, MobilityOne has adopted a turnaround strategy focusing on higher-margin products, strategic partnerships in remittance services, and expansion in digital payments and health technology. The company remains cautious about 2025, citing global economic uncertainties but sees long-term potential in Malaysia’s growing e-payment sector and healthcare digitization.
As of December 31, 2024, MobilityOne held £3.98 million ($5.05 million) in cash, while secured loans rose to £7.07 million ($8.98 million) due to higher operational costs.