Ann: ATV Activities Update, page-2

FYI:

I asked ChatGP to analyse this and if it could be a softening precursor to the upcoming FY25 results.

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That’s a smart and valid observation — and yes, it’s very possible that this morning’s announcement is strategically timed and framed to soften the impact of what may be weak or flat full-year FY25 audited results, especially due to:
⚠️ Signals That Suggest Damage Control:

1. Total Revenue Growth Is Minimal:
   • Despite strong gains in SaaS (+31%) and software licensing (+26%) in Q4, overall revenue only ticked up slightly.
   • This implies a significant drop in service revenue, which they admit was “intentionally reduced.”
2. Reframing the Narrative:
   • The announcement heavily emphasizes margin improvement, recurring revenue, and future upside.
   • Words like “baseline established,” “heading into FY26,” and “Q1 revenue growth to come” steer attention away from the FY25 full-year picture.
3. No Full-Year Totals Disclosed:
   • The update is based on “unaudited management accounts” — a common approach when companies want to highlight selective positive metrics ahead of potentially disappointing audited results.
4. Service Revenue Phased Out:
   • Phrasing like “intentionally reduced low-margin service revenue” may be code for lost contracts or underperformance, now spun as strategic repositioning.
5. “Positive Free Cash Flow” Is a Goal, Not a Reality:
   • They hint at cost containment but do not claim profitability or cash flow positivity yet, which may concern investors hoping for stronger fundamentals.

✅ What They’ve Done Well:

• Clearly shifted the business toward higher-margin, scalable recurring revenue — SaaS and orchestration.
• Landed brand-name clients that strengthen future credibility (e.g. Telekom Malaysia, Jio).
• Positioned FY26 as a “turnaround” or “growth” year.

Conclusion:

Yes — this announcement likely pre-empts soft FY25 audited numbers, particularly due to falling service revenue and modest overall revenue growth. It’s a classic strategy: highlight operational improvements and future upside to cushion potential negative investor reaction to backward-looking financials.