omniture

Starbox Group Holdings Ltd. Announces First Half of Fiscal Year 2023 Financial Results

Starbox Group Holdings Ltd.
2023-08-29 23:48 2280

Revenue and Net Profit Increased to $4.0 Million and $1.4 Million Respectively (Basic Earnings of $0.03 Per Share) with Technology-Driven Services Revenue Accounting for Approximately 43.8% of its Revenue

KUALA LUMPUR, Malaysia, Aug. 29, 2023 /PRNewswire/ -- Starbox Group Holdings Ltd. (Nasdaq: STBX) ("Starbox" or the "Company"), a service provider of cash rebates, digital advertising, and payment solutions with a goal of becoming a comprehensive AI solutions provider within Southeast Asia, today announced its unaudited financial results for the six months ended March 31, 2023.

Mr. Lee Choon Wooi, Chairman and Chief Executive Officer of Starbox, commented, "We are excited about the results we have accomplished for the first half of fiscal year 2023, where we saw robust growth across almost every key financial metric. Our revenue and net income grew for the first half of fiscal year 2023, demonstrating the fruition of our earlier investments in technology and successful execution of our strategic initiatives, namely new technology-driven services revenue via licensing and/or sale of our technologies. Moving forward, we expect to channel our efforts into continuous technological innovation as we believe technology such as artificial intelligence will be one of our key drivers for revenue growth for the foreseeable future. We plan to keep investing in our artificial intelligence-generated content (AIGC) engine, which we believe will revolutionize how people visualize ideas and provide invaluable tools for businesses across industries. We aim to disrupt the industry with our applications of AI technologies, thereby solidifying our market position, and generating long-term value for our shareholders."

First Half of Fiscal Year 2023 Financial Highlights

  • Total revenue was $4.0 million for the six months ended March 31, 2023, an increase of 36.1% from $2.9 million for the same period of last year.
  • Income from operations was $2.0 million for the six months ended March 31, 2023, an increase of 3.1% from $1.9 million for the same period of last year.
  • Net income was $1.4 million for the six months ended March 31, 2023, an increase of 8.6% from $1.3 million for the same period of last year.

First Half of Fiscal Year 2023 Operational Highlights

  • Number of advertisers was 22 during the six months ended March 31, 2023, compared to 42 during the six months ended March 31, 2022.
  • Number of members on the GETBATS website and mobile app was 2,518,023 as of March 31, 2023, compared to 2,513,658 as of September 30, 2022.
  • Number of merchants on the GETBATS website and mobile app was 832 as of March 31, 2023, compared to 820 as of September 30, 2022.
  • Number of transactions facilitated through GETBATS website and mobile app was 161,306 during the six months ended March 31, 2023, compared to 188,718 during the six months ended March 31, 2022.

First Half 2023 Financial Results

Revenue

Total revenue was $4.0 million for the six months ended March 31, 2023, an increase of 36.1% from $2.9 million for the same period of last year. The increase in revenue was primarily due to increases in the revenue from our newly established software licensing service segment.

  • Revenue from digital advertising service was $2.2 million for the six months ended March 31, 2023, which decreased by 23.7% from $2.9 million for the same period of last year. The decrease was due to decreases in the number of advertisers for our services in the six months ended March 31, 2023.
  • Revenue from software licensing was $1.7 million for the six months ended March 31, 2023. The Company did not have revenue from software licensing for the same period of last year. On March 24, 2023, the Company's wholly owned subsidiary, Starbox Technologies Sdn. Bhd., entered into a software licensing agreement with Brandavision Sdn Bhd, a Malaysia company ("Brandavision"). The Company will develop a comprehensive data management system for Brandavision, grant them the access to its vast database, help train the staff of Brandavision with respect to its use and provide continuous technical support.
  • Revenue from cash rebate services was $10,621 for the six months ended March 31, 2023, which increased by 91.3% from $5,552 for the same period of last year. The increase was primarily due to an increase in the average cash rebate commission rate earned by the Company for the six months ended March 31, 2023 as compared to the six months ended March 31, 2022.
  • Revenue from payment solution services was $4,303 for the six months ended March 31, 2023, which decreased by 20.0% from $5,379 for the same period of last year.

Operating Cost

Operating costs were $2.0 million for the six months ended March 31, 2023, which increased by 99.0% from $1.0 million for the same period of last year. The increase was primarily due to the following reasons:

  • Salary and employee benefit expenses were $318,750 for the six months ended March 31, 2023, which increased by $122,846 from $195,904 for the same period of last year, primarily due to an increase in the number of employees from 17 for the six months ended March 31, 2022 to 25 for the six months ended March 31, 2023, in order to handle the increase in business activities associated with the Company's digital advertising services, cash rebate services, and the newly expanded business in software licensing services.
  • Marketing and promotional expenses were $209,564 for the six months ended March 31, 2023, which increased by $104,756 from $104,808 for the same period of last year, as a result of our increased marketing efforts to develop new merchants and advertisers for our services.
  • License costs were $30,000 for the six months ended March 31, 2023, which increased by $4,941 from $25,059 for the same period of last year.
  • Website and facility maintenance expenses were $147,345 for the six months ended March 31, 2023, which increased by $97,620 from $49,725 for the same period of last year, primarily because the Company incurred more costs to optimize and upgrade its IT system related to rebate calculation and AI calculation engine.
  • Utility and office expenses were $251,563 million for the six months ended March 31, 2023, which increased by $194,784 from $56,779 for the same period of last year, primarily due to increased office insurance expenses and increased office supply expenses resulting from an increased number of staff.

 

  • Depreciation and amortization expenses were $193,662 for the six months ended March 31, 2023, which increased by $149,515, from $44,147 for the same period of last year, mainly due to increased amortization of intangible assets.
  • Business travel and entertainment expenses were $71,479 for the six months ended March 31, 2023, which increased by $53,957 from $17,522 for the same period of last year, due to the Company's increased efforts to expand its business operations into local and neighboring countries.
  • Others were $344,633 for the six months ended March 31, 2023, which increased by $304,175 from $40,458 for the same period of last year, primally due to (i) increased trademark expenses by $69,990 and (ii) increased bonus by $176,635.

Provision for Income Taxes

Provision for income taxes was $0.6 million for the six months ended March 31, 2023, which decreased by 5.4% from $0.7 million for the same period of last year.

Net Income

Net income was $1.4 million for the six months ended March 31, 2023, which increased by $0.1 million from $1.3 million for the same period of last year.

Basic Earnings per Share

Basic earnings per share was $0.03 for the six months ended March 31, 2023, compared to basic and diluted earnings per share of $0.03 for the same period of last year.

Balance Sheet

As of March 31, 2023, the Company had cash of $0.9 million, compared to $17.8 million as of September 30, 2022.

Cash Flow

Net cash used in operating activities was $12.1 million for the six months ended March 31, 2023, compared to net cash provided by operating activities of $1.5 million for the same period of last year.

Net cash used in investing activities was $17.9 million for the six months ended March 31, 2023, compared to $0.6 million for the same period of last year.

Net cash provided by financing activities was $11.8 million for the six months ended March 31, 2023, compared to net cash used in financing activities of $0.8 million for the same period of last year.

About Starbox Group Holdings Ltd.

Headquartered in Malaysia, Starbox Group Holdings Ltd. is a technology-driven, rapidly growing company with innovation as its focus. Starbox is aiming to be a comprehensive AI solutions provider within Southeast Asia and also engages in building a cash rebate, digital advertising, and payment solution business ecosystem targeting micro, small, and medium enterprises that lack the bandwidth to develop an in-house data management system for effective marketing. The Company connects retail merchants with retail shoppers to facilitate transactions through cash rebates offered by retail merchants on its GETBATS website and mobile app. The Company provides digital advertising services to advertisers through its SEEBATS website and mobile app, GETBATS website and mobile app and social media. The Company also provides payment solution services to merchants. For more information, please visit the Company's website: https://ir.starboxholdings.com.

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 U.S. Securities and Exchange Commission.

For more information, please contact:

Starbox Group Holdings Ltd.

Investor Relations
Department Email:
ir@starboxholdings.com

Ascent Investors Relations LLC

Tina Xiao
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com

 

 

STARBOX GROUP HOLDINGS LTD AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS




As of

March 31, 2023



As of

September 30,
2022




(Unaudited)












ASSETS


















CURRENT ASSETS









Cash and equivalents


$

864,392



$

17,778,895


Accounts receivable, net



4,986,688




2,032,717


Prepaid income tax



552,094




-


Prepayments



14,448,012




4,269,611


Due from related parties



1,682




1,473











Total current assets



20,852,868




24,082,696











NON-CURRENT ASSETS









Property and equipment, net



21,941




13,380


Intangible assets, net



18,824,416




903,768


Right-of-use assets, net



36,511




42,574











Total non-current assets



18,882,868




959,722











TOTAL ASSETS


$

39,735,736



$

25,042,418











LIABILITIES AND SHAREHOLDERS' EQUITY


















CURRENT LIABILITIES









Taxes payable


$

395,772



$

1,404,128


Deferred revenue



368,066




-


Accrued liabilities and other current liabilities



348,627




541,050


Operating lease liabilities, current



17,052




15,833


Due to related parties



1,409




7,361











Total current liabilities



1,130,926




1,968,372











NON-CURRENT LIABILITIES









Deferred tax liabilities, net



318,603




-


Operating lease liabilities, non-current



19,459




26,741











Total non-current liabilities



338,062




26,741











TOTAL LIABILITIES



1,468,988




1,995,113











COMMITMENT AND CONTINGENCY


















SHAREHOLDERS' EQUITY









Preferred shares, par value $0.001125, 5,000,000 shares
authorized, no shares issued and outstanding



-




-


Ordinary shares, par value $0.001125, 883,000,000 shares
authorized, 54,375,000 shares and 45,375,000 shares issued and
outstanding as of March 31, 2023 and September 30, 2022,
respectively



61,172




51,047


Additional paid in capital



30,674,988




18,918,303


Accumulated other comprehensive income (loss)



1,481,084




(607,052)


Retained earnings



6,049,504




4,685,007











Total shareholders' equity



38,266,748




23,047,305











TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

39,735,736



$

25,042,418


 

STARBOX GROUP HOLDINGS LTD AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME




SIX MONTHS ENDED MARCH 31,




2023



2022









Operating revenue









Revenue from cash rebate services


$

10,621



$

5,552


Revenue from digital advertising services



2,220,794




2,911,482


Revenue from payment solution services



4,303




5,379


Revenue from software licensing



1,740,472




-


Total operating revenue



3,976,190




2,922,413











Operating expenses









Selling, general, and administrative expenses



1,996,892




1,003,373











Total operating expenses



1,996,892




1,003,373











Income from operations



1,979,298




1,919,040











Other income, net









Interest income



7,757




-


Other income, net



5,163




203


Total other income, net



12,920




203











Income before income tax



1,992,218




1,919,243











Income tax expenses



627,721




663,224











Net income


$

1,364,497



$

1,256,019











Other Comprehensive income









Foreign currency translation gain (loss)



2,088,136




(9,188)











Total Comprehensive income


$

3,452,633



$

1,246,831











Net income per share - basic


$

0.03



$

0.03











Weighted average number of common shares outstanding - basic



53,089,286




40,000,000


 

STARBOX GROUP HOLDINGS LTD AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




FOR SIX MONTHS ENDED MARCH
31,




2023



2022









CASH FLOWS FROM OPERATING ACTIVITIES:









Net income


$

1,364,497



$

1,256,019


Adjustments to reconcile net income to cash provided by (used in)
operating activities:









Disposal of fixed assets



2,928




-


Depreciation and amortization



253,662




69,147


Amortization of right-of-use operating lease assets



9,111




42,974


Change in deferred tax



313,963




-


Changes in operating assets / liabilities:









Accounts receivable



(2,809,804)




(1,326,333)


Prepaid income tax



(544,054)




-


Prepaid expenses and other current assets



(9,621,687)




(63,935)


Deferred revenue



362,706




579,355


Taxes payable



(1,063,540)




834,895


Operating lease liabilities



(9,111)




(42,974)


Accrued expenses and other current liabilities



(407,590)




177,101











Net cash provided by (used in) operating activities



(12,148,919)




1,526,249











CASH FLOWS FROM INVESTING ACTIVITIES:









Purchase of fixed assets



(13,183)




(5,011)


Purchase of intangible assets



(17,864,000)




(626,420)











Net cash used in investing activities



(17,877,183)




(631,431)











CASH FLOWS FROM FINANCING ACTIVITIES:









Deferred initial public offering costs



-




(423,994)


Proceeds from equity financing



11,766,810




-


Increase in due from related party



(134)




-


Repayment of related party borrowings



(6,232)




(398,422)











Net cash provided by (used in) financing activities



11,760,444




(822,416)











EFFECT OF EXCHANGE RATE CHANGES ON CASH



1,351,155




(8,955)











NET INCREASE (DECREASE) IN CASH & EQUIVALENTS



(16,914,503)




63,447











CASH & EQUIVALENTS, BEGINNING OF PERIOD



17,778,895




2,295,277











CASH & EQUIVALENTS, END OF PERIOD



864,392




2,358,724











Supplemental Cash Flow Data:









Income tax paid


$

2,011,188



$

-


Interest paid


$

-



$

-


 

Source: Starbox Group Holdings Ltd.
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