“SABUY” reported total revenue of 9.6 billion baht in 2023, achieving an 80% growth. Plan for major group restructuring and investment in new businesses are underway.

“SABUY” reported total revenue of 9.6 billion baht in 2023, achieving an 80% growth. Plan for major group restructuring and investment in new businesses are underway.

SABUY Technology Public Company Limited announced plans for a major business restructuring strategy along with unveiling their expansion plans for new investments, aiming to reinforce a strong portfolio. The company is confident in bolstering their 5 main business groups; SABUY, SBNEXT, PTECH, SABUY SPEED (Drop-Off business group), and ASPHERE.

Khun Chookiat  Rujanapornpaje,  Group CEO of SABUY Technology PLC, revealed that the group of companies achieved a total revenue of 9.6 billion baht, representing an 80% increase from the previous year. This revenues consists of :Top of Form

• Revenue from Services Business amounting to 2.7 billion baht, reflecting a 35% increase from SABUY SPEED, SABUY Alliance, BzB, iSoftel, and Marketing Oops. Meanwhile, traditional businesses like top-up machines have remained relatively stable, with revenue coming mainly from banking agents, resulting in a reasonable increase in revenue for SABUY Money.
• Revenue from Sales amounting to 6.2 billion baht, marking a 131% increase from SBNEXT, VDP, SABUY Market & Food, Plastic Cards (PTECH), BzB, and LOVLS.
• Revenue from Contract Services and Interests Income amounting to 577 million baht, showing a 59% increase, primarily driven by the significant growth of LOVLS business and a threefold increase in SBNEXT, while SBT saw a slight decrease.

The loss of 574 million baht in the fourth quarter resulted in a loss for the fiscal year 2024 of 190 million baht.  This was primarily due to the liquidity situation of several registered companies in the Stock Exchange of Thailand (SET). This, in turn, affected the money market and stock market conditions, with many companies unable to make repayments or delaying them, exacerbated by strict control by commercial banks on lending. Consequently, SABUY chose to divest non-core investments and assets that might require time to generate value. In the fourth quarter of 2024, SABUY sold 12% of its investment in TKC and a further 4% in the first quarter of 2024, focusing on maintaining liquidity within the group as a top priority. This resulted in a loss of approximately 640 million baht from these investments, which was recorded in the fourth quarter of 2024.

For SBNEXT, including companies within the group such as Alpine, SAFE Trade, and Thiensurat Leasing (TSRL), the Company decided to increase  caution in providing loans to retail borrowers, resulting in provisions for doubtful debts of 140 million baht in the fiscal year 2023.

In the case of SBNEXT, there was a change in the method of recording land values from cost to newly appraised value in the third quarter of 2023,  resulting in recognizing losses from the revaluation of land values in the fourth quarter of 2023, amounting to 43 million baht. SBNEXT is currently planning land utilization (expected to be completed in the first quarter of 2024). The Company expects to return to profitability in 2024.

Furthermore, the group of companies has invested in developing various systems to reduce dependency and increase efficiency in operations, leading to an increase in expenditure on personnelThese investments can enable the group of companies to sustainably grow in the future. The aforementioned expenses primarily relate to IT system development, with investment values ranging from approximately 150-200 million baht. These investments have been gradually made from the fourth quarter of 2023 and onward.

For 2024, the company aims to focus on enhancing organizational efficiency, reducing expenses, and minimizing redundancy. The group intends to implement rigorous management and make significant structural adjustments, focusing on its five core businesses: SABUY, SBNEXT, PTECH, SABUY SPEED (Drop-Off business group), and ASPHERE. We plan to expand into other market segments, diversify products, and increase cross-selling within the group to better meet consumer needs. This strategy aims to ensure a more stable revenue momentum for the company in the future. Additionally, the company aims to reduce employee-related expenses by approximately 200-250 million baht in 2024  and building facilities, with an estimated expense of around 35 million baht.

In the company’s board of directors meeting No. 5/2024 held on February 29, 2024, the board resolved to approve the retention of net profits as legal reserves and to suspend the distribution of dividends for the fiscal year 2023.