WOLO Kuala Lumpur Shines as Bold Moves Set Stage for a Stellar Future
KUALA LUMPUR, 28 FEBRUARY 2025 – Magma Group Berhad (“Magma” or the “Company”), a dynamic hospitality and investment holding group, today announced its financial results for the fourth quarter of the fiscal year 2024 (“Q4 FY2024”). The Company delivered a robust 24.04% increase in total revenue, reaching RM17.818 million for the financial year ended 31 December 2024 (“FY2024”), propelled by exceptional performance in its Hotel Operation segment. This segment’s annual revenue soared to RM28.549 million from RM12.082 million in the previous financial year (“FY2023”) — a remarkable 136% increase — demonstrating Magma’s ability to capitalise on recovering travel demand and operational enhancements.
In Q4 FY2024, the Hotel Operation segment achieved RM8.291 million in revenue, reflecting a 143% increase from RM3.405 million in Q4 FY2023. This growth was fueled by higher occupancy rates, bolstered by special travel visas for Chinese visitors, and the successful integration of WOLO Kuala Lumpur under Magma Bintang Sdn Bhd (“MBSB”). For FY2024, the segment’s profit after tax climbed 59% to RM4.233 million from RM2.661 million in FY2023, underscoring Magma’s strong market position and operational excellence.
The Hotel Management segment also marked a positive shift, recording a profit after tax of RM0.632 million in Q4 FY2024, a significant turnaround from a loss of RM4.026 million in Q4 FY2023. For FY2024, the segment posted a profit of RM1.843 million, reversing a loss of RM2.398 million in FY2023. Despite a slight revenue dip to RM0.724 million in Q4 FY2024 from RM1.281 million, this profitability reflects effective cost management and operational improvements.
Despite the hospitality triumphs, Magma recorded a Loss After Tax (“LAT”) of RM35.120 million in Q4 FY2024, compared to a LAT of RM3.147 million in Q4 FY2023. This was largely due to impairment provisions and one-off costs tied to addressing legacy issues in the Property Development segment, which reported a LAT of RM10.773 million. Challenges included revised Sales and Purchase Agreements (SPA) and impairments of land discharge fees, alongside corporate exercise costs for the Redeemable Convertible Notes (RCN) issuance.
These decisive actions, while impacting short-term results, were critical to clearing historical hurdles and strengthening the Company’s foundation. Excluding these adjustments, Magma’s core operations demonstrated solid progress, paving the way for sustained growth.
Magma is pursuing several key initiatives to bolster its financial position and support long-term expansion:
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- Redeemable Convertible Notes (RCN): With shareholder approval, the Company will raise up to RM100 million, with RM35 million issued by February 2025. These funds will enhance hotel assets, bolster working capital, and support expansion plans.
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- Proposed Capital Reduction: A plan to cancel RM379.207 million of issued share capital will offset accumulated losses, streamlining the balance sheet without affecting share price or outstanding shares.
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- Proposed Land Acquisition: Magma Kiara Sdn Bhd’s acquisition of land valued at RM80 million, financed through cash, shares, and preference shares, reinforces confidence in the Company’s property development strategy
