Why Did Xamble Group’s Revenue Plunge 39% Despite User Growth?
Xamble Group Limited reported a sharp 39% revenue decline and a doubling of losses in H1 FY2025, driven by strategic exit from Taiwan and increased technology spending. Despite financial setbacks, operational metrics show strong user and client growth, underpinning the company’s Southeast Asia-focused transformation.
- Revenue down 39% to A$3.15 million in H1 FY2025
- Loss after tax more than doubles to A$1.46 million
- Strategic exit from Taiwan operations impacts top line
- Technology investment rises 12%, supported by Malaysian government grant
- User engagement and brand partnerships surge amid transformation
Revenue and Losses Reflect Strategic Shift
Xamble Group Limited’s half-year results for the six months ended 30 June 2025 reveal a company in the midst of significant transformation. Revenue fell sharply by 39% to A$3.15 million, while losses after tax more than doubled to A$1.46 million compared to the same period last year. This deterioration largely stems from the Group’s deliberate exit from its Taiwan operations in late 2024, a move designed to sharpen focus on more scalable core markets in Southeast Asia.
The strategic restructuring has led to a reduction in business expenses by 13% compared to the previous half-year, but the financial impact of losing Taiwan’s revenue contribution remains evident in the headline numbers.
Investing Heavily in Technology and Growth
Despite the financial setbacks, Xamble Group has increased its technology investment by 12% to A$0.56 million in H1 FY2025. This investment is bolstered by a substantial Malaysia Digital Acceleration Grant (MDAG) worth approximately A$1.30 million over three years, with A$0.34 million already claimed. The grant underpins the Group’s ambition to position its platform as a leading influencer marketing and social commerce enabler in Southeast Asia.
The company’s operational metrics paint a more optimistic picture. App downloads surged 159% year-on-year to 9,075, while Monthly Active Users jumped 285% to 3,039. The influencer community nearly doubled to 3,452 members, and new brand partnerships doubled to 14 clients in the half-year. These figures indicate strong momentum in user adoption and commercial traction despite the revenue decline.
Capital Raising to Support Working Capital Needs
To bolster its financial position, Xamble Group announced a 1-for-3 entitlement offer priced at A$0.012 per CDI, aiming to raise up to A$1.35 million before costs. The offer includes free-attaching options exercisable at A$0.025 through August 2028. Notably, 85% of the targeted raise is underwritten or committed by Eli Capital Pty Ltd and certain company directors, providing a degree of certainty to the capital raise. The net proceeds, estimated at A$1.23 million, will primarily support short-term working capital requirements.
Outlook and Market Positioning
Xamble Group’s deliberate pivot away from less scalable markets and increased focus on technology innovation positions it for potential long-term growth in the fast-evolving Southeast Asian influencer marketing space. The company’s strengthened platform and expanding user base could unlock future revenue opportunities, although near-term profitability remains challenged. Investors will be watching closely how the company leverages its technology investments and government support to convert operational momentum into sustainable financial performance.
Bottom Line?
Xamble’s transformation is gaining operational traction, but the path to profitability hinges on execution and capital raise success.
Questions in the middle?
- Will the entitlement offer achieve full subscription and how will it impact share dilution?
- How effectively will increased technology investments translate into revenue growth?
- What are the longer-term implications of exiting Taiwan on regional market positioning?
