ZO FUTURE GROUP issues a profit warning, expecting an annual loss attributable to shareholders of approximately HKD 320 million
ZO FUTURE GROUP issued a profit warning, expecting an annual loss attributable to shareholders of approximately HKD 320 million for the year ending June 30, 2025, a significant increase from the loss of HKD 182.8 million for the year ending June 30, 2024. The reasons for the increased loss include a decrease in broadcasting revenue due to the relegation of Birmingham City Football Club, increased loans raising financing costs, rising operating expenses of the club, increased amortization of intangible assets, and increased losses from joint ventures
According to the announcement from ZO FUTURE GROUP (02309), compared to the estimated loss attributable to the owners of approximately HKD 182.8 million for the fiscal year ending June 30, 2024, the group expects to incur a loss attributable to the owners of approximately HKD 320 million for the fiscal year ending June 30, 2025.
The increase in losses is mainly due to the following reasons during the review year: (i) Birmingham City Football Club was relegated to the English Football League One this season, resulting in a decrease in broadcasting revenue; (ii) an increase in loans has driven up financing costs; (iii) an increase in operating expenses for the club, mainly due to increased matchday expenses and higher depreciation of property, plant, and equipment after the completion of maintenance and upgrades; (iv) an increase in amortization of intangible assets due to the purchase of new players; (v) an increase in losses from joint ventures due to higher operating expenses of the joint ventures; (vi) an increase in sales and marketing expenses, R&D costs, and administrative expenses in the automotive business, although partially offset by (a) gains from changes in the fair value of financial assets obtained during the year; and (b) increased matchday and commercial revenues from the club
