Ovanti’s FY25 Revenue Falls 2.4% While Losses Jump to $9.58M
Ovanti Limited’s FY2025 results reveal a modest revenue dip but a sharp 61% rise in net loss, driven by a significant impairment charge. The company’s capital base strengthened despite ongoing losses, with no dividends declared.
- Revenue declined 2.4% to $5.9 million
- Net loss after tax increased 61% to $9.58 million
- Impairment of $2 million on 1-Destinasi Sdn Bhd investment
- Issued capital rose substantially to $103.5 million
- No dividends declared for FY2025
Financial Performance Overview
Ovanti Limited has released its preliminary final report for the year ended 30 June 2025, revealing a challenging year marked by a slight revenue decline and a steep increase in net losses. Revenue from ordinary activities fell by 2.4% to just under $5.9 million, reflecting a modest contraction in the company’s core business operations.
More strikingly, the company’s loss after tax surged by 61% to $9.58 million, compared to $5.95 million the previous year. This significant deterioration was primarily driven by a $2 million impairment related to Ovanti’s investment in Malaysian associate 1-Destinasi Sdn Bhd, underscoring ongoing challenges in its international ventures.
Capital and Balance Sheet Strength
Despite the widening losses, Ovanti bolstered its financial position through a substantial increase in issued capital, which rose from $87.5 million to $103.5 million during the year. This capital raising effort helped lift net assets to $19.8 million, up from $11.3 million a year earlier, providing a stronger buffer to support ongoing operations and strategic initiatives.
The company’s balance sheet also reflects a positive foreign currency translation gain of $1.75 million, which partially offset some of the operational losses and highlights the impact of exchange rate movements on its international investments.
Operational and Market Implications
Ovanti’s core revenue streams, primarily from mobile services in Malaysia, showed resilience but were insufficient to counterbalance the impairment and other expenses. The company’s loss per share narrowed to 0.45 cents from 0.64 cents, reflecting the increased share base following capital raises.
No dividends were declared or paid during the year, consistent with the company’s focus on preserving cash and reinvesting in growth opportunities amid a challenging market environment.
Looking Ahead
While the preliminary report is unaudited and subject to final confirmation, Ovanti’s results highlight the pressures of managing international investments and the importance of capital adequacy. Investors will be watching closely for the audited accounts and any strategic updates on the company’s investment portfolio and operational outlook.
Bottom Line?
Ovanti’s FY25 results underscore the need for strategic clarity as losses deepen despite capital injections.
Questions in the middle?
- What are the underlying reasons for the $2 million impairment on 1-Destinasi Sdn Bhd?
- How will Ovanti leverage its strengthened capital base to return to profitability?
- What impact will foreign currency fluctuations have on future earnings?