Starbox Group Holdings Ltd. Announces Financial Results for Fiscal Year 2023
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Insights
The reported 63.2% increase in total revenue for Starbox Group Holdings Ltd. is a significant indicator of the company's growth trajectory, particularly when compared to the industry average for advertising and payment solutions providers. This surge likely reflects the successful integration of their technology-driven operations and strategic acquisitions. However, the substantial rise in revenue did not translate to an increase in net income, which declined from $3.6 million to $2.1 million. This discrepancy suggests increased operational costs or one-time expenses associated with the acquisitions.
Moreover, the decrease in the number of advertisers from 63 to 31 could signal a shift in market strategy or a consolidation of advertising clients, potentially impacting future revenue streams. The slight increase in the number of members and merchants on the GETBATS platform indicates steady but slow growth in market penetration. This slow growth should be monitored as it may not support the aggressive revenue growth in the long term.
From a financial perspective, the decline in income from operations is a key concern, dropping to $4.6 million from $5.0 million despite the revenue surge. This could be indicative of rising costs or inefficiencies that need to be addressed. Investors should analyze the company's margins and cost structures in detail to understand the underlying factors. The acquisition of One Eighty Holdings Ltd could be a strategic move to diversify and enhance service offerings, but the impact on the company's financial health will depend on how well the integration is managed and whether it can contribute positively to earnings before interest, taxes, depreciation and amortization (EBITDA).
The operational highlights reveal a mixed performance with a notable decrease in the number of transactions facilitated through the GETBATS platform. This should raise questions about the user engagement and transaction monetization strategies.
Starbox's focus on becoming a technology solutions provider in Southeast Asia is a strategic pivot that aligns with the global shift towards digital transformation. The company's revenue growth, driven by technology operations and recent acquisitions, positions it well in a competitive market. However, it is crucial to assess the sustainability of this growth, considering the operational challenges reflected in the declining net income. The technology sector is known for rapid innovation and disruption, so Starbox's ability to maintain its competitive edge through ongoing investment in R&D and adapting to market changes will be critical for its long-term success.
Additionally, the operational highlights suggest a need to focus on user engagement and conversion, as evidenced by the decline in the number of transactions. The company's strategy to enhance its platform capabilities will be key to retaining and growing its user base, which is essential for maintaining revenue growth.
Mr. Lee Choon Wooi, Chief Executive Officer and Chairman of the Board of Directors at Starbox, remarked, "As we reflect on fiscal year 2023, it becomes apparent that Starbox Group has solidified its position as a key player in advertising, cash rebates, and payment solutions, and become a technology solutions provider in
Fiscal Year 2023 Financial Highlights
- Total revenue was
$11.7 million 63.2% from$7.2 million - Income from operations was
$4.6 million $5.0 million - Net income was
$2.1 million $3.6 million
Fiscal Year 2023 Operational Highlights
- Number of advertisers was 31 as of September 30, 2023, compared to 63 as of September 30, 2022.
- Number of members on the GETBATS website and mobile app was 2,523,802 as of September 30, 2023, compared to 2,513,658 as of September 30, 2022.
- Number of merchants on the GETBATS website and mobile app was 841 as of September 30, 2023, compared to 820 as of September 30, 2022.
- Number of transactions facilitated through GETBATS website and mobile app was 264,600 as of September 30, 2023, compared to 338,940 as of September 30, 2022.
- Completed the acquisition of
51% equity interests in One Eighty Holdings Ltd on June 26, 2023.
About Starbox Group Holdings Ltd.
Headquartered in
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the
For more information, please contact:
Starbox Group Holdings Ltd.
Investor Relations Department
Email: ir@starboxholdings.com
Ascent Investors Relations LLC
Tina Xiao
Phone: +1 646-932-7242
Email: investors@ascent-ir.com
STARBOX GROUP HOLDINGS LTD. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of September 30, 2023 | As of September 30, 2022 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and equivalents | $ | 2,524,957 | $ | 17,778,895 | ||||
Accounts receivable, net | 9,405,155 | 2,032,717 | ||||||
Prepaid expenses and other current assets | 16,067,467 | 4,269,611 | ||||||
Short-term deposits | 125,298 | - | ||||||
Due from related parties | 112,281 | 1,473 | ||||||
Total current assets | 28,235,158 | 24,082,696 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment, net | 2,523,181 | 13,380 | ||||||
Intangible assets, net | 39,666,050 | 903,768 | ||||||
Right-of-use assets, net | 144,901 | 42,574 | ||||||
Long-term deposits | 213,047 | - | ||||||
Goodwill | 82,244,248 | - | ||||||
Total non-current assets | 124,791,427 | 959,722 | ||||||
TOTAL ASSETS | $ | 153,026,585 | $ | 25,042,418 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 1,088,982 | $ | - | ||||
Taxes payable | 339,350 | 1,404,128 | ||||||
Deferred revenue | 393,615 | - | ||||||
Accrued liabilities and other current liabilities | 1,271,087 | 541,050 | ||||||
Operating lease liabilities, current | 47,537 | 15,833 | ||||||
Due to related parties | 246,836 | 7,361 | ||||||
Total current liabilities | 3,387,407 | 1,968,372 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Deferred tax liabilities, net | 6,412,919 | - | ||||||
Operating lease liabilities, non-current | 97,364 | 26,741 | ||||||
Loans payable | 2,070,563 | - | ||||||
Total non-current liabilities | 8,580,846 | 26,741 | ||||||
TOTAL LIABILITIES | 11,968,253 | 1,995,113 | ||||||
COMMITMENT AND CONTINGENCY | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred shares, par value | - | - | ||||||
Ordinary shares, par value | 80,871 | 51,047 | ||||||
Additional paid in capital | 81,902,805 | 18,918,303 | ||||||
Accumulated other comprehensive loss | (1,061,958) | (607,052) | ||||||
Retained earnings | 8,872,207 | 4,685,007 | ||||||
Total shareholders' equity attributable to the Company | 89,793,925 | 23,047,305 | ||||||
Noncontrolling interest | 51,264,407 | - | ||||||
TOTAL EQUITY | 141,058,332 | 23,047,305 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 153,026,585 | $ | 25,042,418 | ||||
STARBOX GROUP HOLDINGS LTD. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSHIVE INCOME | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
FISCAL YEARS ENDED SEPTEMBER 30, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Operating revenue | ||||||||||||
Advertising services | 5,307,280 | 7,174,050 | 3,158,520 | |||||||||
Cash rebate and payment solution services and | 84,592 | 20,137 | 7,708 | |||||||||
Software licensing | 5,715,333 | - | - | |||||||||
Production income | 362,040 | - | - | |||||||||
Marketing and promotional campaign service | 271,607 | - | - | |||||||||
Total operating revenue | 11,740,852 | 7,194,187 | 3,166,228 | |||||||||
Cost of revenue | 834,614 | 6,383 | 19,874 | |||||||||
Gross profit | 10,906,238 | 7,187,804 | 3,146,354 | |||||||||
Operating expenses | ||||||||||||
Selling expenses | 376,899 | 97,939 | 120,515 | |||||||||
General and administrative expenses | 5,931,350 | 2,139,428 | 885,950 | |||||||||
Total operating expenses | 6,308,249 | 2,237,367 | 1,006,465 | |||||||||
Income from operations | 4,597,989 | 4,950,437 | 2,139,889 | |||||||||
Other income, net | ||||||||||||
Interest income, net | 750 | - | - | |||||||||
Other income (expenses), net | (4,924) | 59,377 | 166 | |||||||||
Total other income (expenses), net | (4,174) | 59,377 | 166 | |||||||||
Income before income tax | 4,593,815 | 5,009,814 | 2,140,055 | |||||||||
Income tax expense | 2,134,082 | 1,407,449 | 692,405 | |||||||||
Income before noncontrolling interest | 2,459,733 | 3,602,365 | 1,447,650 | |||||||||
Less: Income attributable to noncontrolling interest | 311,497 | - | - | |||||||||
Net income attributable to the Company | $ | 2,148,236 | $ | 3,602,365 | $ | 1,447,650 | ||||||
Other Comprehensive income | ||||||||||||
Foreign currency translation loss attributable to the | (223,726) | (585,619) | (19,063) | |||||||||
Foreign currency translation loss attributable to | (21,790) | - | - | |||||||||
Comprehensive income attributable to the | $ | 1,924,510 | $ | 3,016,746 | $ | 1,428,587 | ||||||
Comprehensive income attributable to | $ | 289,707 | $ | - | $ | - | ||||||
Net income per share - basic and diluted | $ | 0.04 | $ | 0.09 | $ | 0.04 | ||||||
Weighted average number of ordinary shares | $ | 56,469,014 | $ | 40,544,863 | $ | 40,000,000 | ||||||
STARBOX GROUP HOLDINGS LTD. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
FISCAL YEARS ENDED SEPTEMBER 30, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 2,459,733 | $ | 3,602,365 | $ | 1,447,650 | ||||||
Adjustments to reconcile net income to net cash | ||||||||||||
Depreciation and amortization | 1,840,302 | 161,267 | 2,568 | |||||||||
Amortization of right-of-use assets | 41,090 | 56,690 | 7,274 | |||||||||
Changes in deferred tax | 857,381 | - | - | |||||||||
Changes in operating assets / liabilities: | ||||||||||||
Accounts receivable | (5,124,396) | (864,099) | (1,100,053) | |||||||||
Prepaid expenses and other current assets | (11,265,056) | (4,754,970) | (39,190) | |||||||||
Customer deposit | (217,878) | - | - | |||||||||
Deferred revenue | (217,533) | (778,701) | 688,979 | |||||||||
Taxes payable | (545,753) | 661,359 | 870,528 | |||||||||
Operating lease liabilities | (41,090) | (56,690) | (7,274) | |||||||||
Accrued expenses and other current liabilities | 467,154 | 740,415 | 13,413 | |||||||||
Net cash (used in) provided by operating | (11,528,168) | (1,232,364) | 1,883,895 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Cash acquired from acquisition of subsidiaries | 932,893 | - | - | |||||||||
Purchase of fixed assets | (14,864) | (6,669) | (5,203) | |||||||||
Purchase of intangible assets | (17,679,247) | (1,129,260) | - | |||||||||
Cash advances to a related party | - | - | (387,945) | |||||||||
Collection of cash advances from a related party | - | - | 387,945 | |||||||||
Net cash used in investing activities | (16,761,218) | (1,135,929) | (5,203) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Capital contribution by shareholders | - | - | 200,000 | |||||||||
Proceeds from equity financing | 11,766,810 | 18,769,326 | - | |||||||||
Increase in due from related parties | 10,713 | - | - | |||||||||
Repayment of loans | (32,331) | - | - | |||||||||
Borrowing from (repayment to) related parties | 328,546 | (729,521) | (125,875) | |||||||||
Net cash provided by financing activities | 12,063,025 | 18,039,805 | 74,125 | |||||||||
EFFECT OF EXCHANGE RATE CHANGES ON | 972,423 | (187,894) | (28,792) | |||||||||
NET INCREASE (DECREASE) IN CASH & | (15,253,938) | 15,483,618 | 1,924,025 | |||||||||
CASH & EQUIVALENTS, BEGINNING OF | 17,778,895 | 2,295,277 | 371,252 | |||||||||
CASH & EQUIVALENTS, END OF FISCAL | 2,524,957 | 17,778,895 | 2,295,277 | |||||||||
Supplemental Cash Flow Data: | ||||||||||||
Income tax paid | $ | 2,382,705 | $ | 934,910 | $ | 15,747 | ||||||
Interest paid | $ | 26,454 | $ | - | $ | - | ||||||
Supplemental disclosure of non-cash investing and | ||||||||||||
Right-of-use assets obtained in exchange for | $ | 167,667 | $ | 52,934 | $ | 317,170 | ||||||
Shares issued for acquisition of One Eighty Ltd | $ | 53,055,300 | $ | - | $ | - | ||||||
Goodwill acquired in business acquisition | $ | 82,244,248 | $ | - | $ | - | ||||||
Identifiable intangible assets acquired in business | $ | 23,500,000 | $ | - | $ | - | ||||||
Net assets acquired in business acquisition | $ | 21,785,752 | $ | - | $ | - | ||||||
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SOURCE Starbox Group Holdings Ltd.
FAQ
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