ZO Future Group warns of significant loss increase

ZO Future Group (HKEX:2309) issued a profit warning, projecting a loss to owners of approximately HK$120 million for the six months ended December 31, 2024. This is a substantial increase compared to the HK$36.9 million loss recorded during the same period last year. The anticipated increase in loss is attributed to several factors, including decreased broadcasting income due to the Birmingham City Football Club’s relegation to the EFL League One, a decline in profit on sales of player registrations, higher finance costs from increased borrowing, and a rise in operating expenses. Additionally, the automobile business saw increased selling and marketing expenses, only partly offset by gains on financial asset values. The interim results are expected to be announced by the end of February 2025.