☕️ OnlyFans's wild, wild FY2023 revenue and profit

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

2040 — the year Malaysia becomes an aged nation, according to the Department of Statistics Malaysia. This is sooner than previously expected. About 17.3% of the population, or 6.4 mil people, will be 60 years old or older out of a total of 37.1 mil people. The stat was revealed during the launch of MyAgeing Dashboard, which intends to show comprehensive data on Malaysia’s transition towards an ageing nation. This is rather comical, the government seems desperate enough to remind people to produce more that it launched a dashboard.

The Honey Deuce, the US Open’s tennis official cocktail since 2007, has become a fan favourite, with over 2.25 mil sold. Its popularity on social media, combined with its ingredients—vodka, lemonade, Chambord, and a honeydew-melon ball garnish resembling a tennis ball—have made it a tournament staple. Priced at USD22, the drink generated about USD9.9 mil in sales at the 2023 US Open, where 450,000 cocktails were sold. The Honey Deuce was created by Nick Mautone, a consultant for Grey Goose.

Snowflake, a data warehouse provider, has announced a USD2.5 bil share buyback program expiring in March 2027. However, the company's stock-based compensation over the past three years totalled around USD2.8 bil and has been more than 40% since going public in 2020. If this compensation continues at its current quarterly rate of USD373 mil, Snowflake is projected to issue over USD4 bil in new equity by 2027. While the buyback may seem positive, it may not sufficiently counterbalance the dilutive effects of the new equity issuances. It's a trick that companies love to announce — share buybacks to distract investors from high levels of stock-based compensation.

3. IN MALAYSIA 🇲🇾

Putrajaya listens — only after being blasted online for two days
When on the surface DNS redirecting may look like a good thing, but Malaysian techies highlighted that it is not and they stood up for us. After being pressured hard by the public via social media platforms, Communications Minister Fahmi Fadzil announced that he has instructed the Malaysian Communications and Multimedia Commission (MCMC) to do a U-turn and stopped the plan to require all internet service providers (ISPs) to implement public domain name service (DNS) redirection by month-end. Although the intention of DNS redirection is noble, to prevent access to gambling websites, prostitution, and pornography, DNS redirection is a powerful tool and if given to the wrong government hand, it can be manipulated into a China surveillance state-ish weapon against the public.

One thing we can agree that the people at MCMC are definitely high on its recent victory. After successfully winning a public PR battle against Asia Internet Coalition (AIC) last month in regard to the requirement that all social media companies need to apply for licenses by year-end, MCMC failed to repeat the same feat in justifying its move to enforce the DNS redirection. In MCMC’s statement defending the move, before it was halted by Fahmi Fadzil, MCMC stated that local DNS servers are more secure compared to third-party DNS servers such as Google DNS or Cloudflare. How could anyone in their right mind say that they are more secure than Google? Perhaps the same minds also the ones that decided that the country should implement the DNS redirection policy in the first place.

Malaysia 2 - 0 Sulu Sultanate
After failing to invade Sabah in 2013, the Sulu Sultanate again lost to Malaysia now in the legal space. Law Minister Azalina Othman said that Malaysia has obtained a final landmark victory at the Netherlands Supreme Court, bringing an end to the RM70.19 bil claim by the defunct Sulu Sultanate against Malaysia. Azalina added that the decision by the Dutch court is final and authoritative. Previously, the Sulu Sultanate demanded the money to be paid by Malaysia, considered as ‘cession money’ after claiming that Sabah was a territory of the Sultanate of Sulu.

Malaysia bagged another gold at the Paris Paralympics
The differently abled Malaysians have done more as national powerlifting star Bonnie Bunyau Gustin clinched the country’s second gold in Paris, after winning the men’s 72kg category. Bonnie did more than win as he also broke the world record, previously held by him, by successfully lifting 232kg. Malaysians at the Paralympics performed better compared to the Olympics, as in the latest three editions (Paris 2024, Tokyo 2020 and Rio 2016), our Paralympic athletes have bagged 8 golds, 4 silvers, 2 bronzes and consistently being ranked among the top 40 countries in the medal standings.

Shorts

1. Inspector-General of Police Razarudin Husain said that the police investigation has concluded that former deputy minister Mashitah Ibrahim and her husband have no part in a Myanmmar-based human trafficking network. Razarudin added that the visits that Mashitah and her husband made to Myanmar was for real-estate investment matters.

2. Malaysians are spending more time exploring the country now as the number of domestic tourists recorded in 1Q2024 has increased by 19%, from 49.26 mil tourists in the same period last year to 58.6 mil domestic tourists this year. These domestic tourists are also spending more, having splurged RM24.1 bil (average of RM411.30 per person), a 25.3% increase compared to a year before. Selangor, Pahang and Melaka have been crowned as the most visited states.
   We are surprised not to see either Sabah or Sarawak in the mix, perhaps the expensive flight ticket is a demotivating factor for domestic tourists. One interesting fact that we want to mention is according to Tourism Malaysia, domestic tourists are defined as those who travel more than 25 kilometres and stay overnight. Those who do not stay overnight are considered regular visitors or business travellers.

3. MARA Chairperson Asyraf Wajdi Dusuki stated that MARA will terminate the contract of the Taiping Mara Junior Science College (MRSM) dining hall operator for negligence towards hygiene in food preparations after 62 students were reported with food poisoning last month. Apart from the un-cleanliness of the dining hall, Asyraf justified the contract termination by underlining that the operator did not hire enough workers (supposedly 19 workers) and the dishes served were not as promised on the menu. View here on the altercation between Asyraf and the dining hall operator after the former made a surprise spot check at the latter’s premise. There’s even a special appearance by Jerry halfway through the call.

4. Gamuda Berhad announced that all work at the construction site for the Sungai Rasau Water Supply Scheme (Stage 1) project, located at Taman Mas, Puchong will be put on hold, pending evaluation of the site. This measure was announced after the pond embankment near the work site collapsed (watch here), resulting in water coming into the construction area. Instead of building a new treatment plant, the construction has led to the accidental expansion of the pond. Sungai Rasau Water Supply Scheme (Stage 1) project is a RM1.97 bil project awarded to Gamuda by Pengurusan Air Selangor Sdn Bhd with the aim of producing more clean water supply to the Klang region, up to 700 mil litres daily. The project's initial completion date is December 2025.

4. AROUND THE WORLD 🌎

Palestine updates:

• A massive protest is erupting in Tel Aviv demanding Netanyahu strike a deal to free the remaining captives in Gaza, with an estimated number of 750 000 Israelis taking it onto the streets. It is the biggest protest by far, with family members of Israeli captives and groups representing them blaming Israeli Prime Minister Netanyahu and his government for failing to secure a truce deal that would secure their release. An increasing number of Israelis recognise that a lasting ceasefire is the only way that can be achieved, with groups of steadily increasing protesters calling for a ceasefire as early as November and December last year.

• Meanwhile, in Seattle, protesters are gathering to demand justice for the Turkish American activist Aysenur Eygi who has been shot dead by Israeli snipers in the West Bank during a protest against illegal Israeli settlements. 

• In the UK, a plastic surgeon who had just returned from her posting in hospitals in Gaza expressed her shock over the number of children that she had to operate on, 80% of them were children under 16, with a multitude of injuries from loss of limbs to third-degree burns. Israel still continues to bomb shelters, schools and hospitals at the time of writing.

When will this madness end?

China promises Africa millions of jobs and an astounding USD51 bil in funding
China’s eyes are set on a trans-regional relationship with Africa - President Xi Jinping has recently pledged to increase its support to the world’s fastest-growing continent with funding of approximately USD 51 bil (RM221 bil) and ready to deepen its cooperation with Africa in industry, agriculture, infrastructure, trade and investment.

They also promised to create at least 1 million jobs with backing for more infrastructure initiatives, including 30 infrastructure projects across the resource-rich continent. Xi announced that China is ready to launch 30 clean energy projects in Africa and even called for a China-Africa network featuring land-sea links and coordinated development.

Last year, China approved loans worth USD4.61 bil to Africa, in the first annual increase since 2016. The president added that the 210 billion yuan of the financing pledge would be disbursed through credit lines and at least 70 billion in fresh investment by Chinese companies, with smaller amounts provided through military aid and other projects.

OnlyFans owner earns himself a USD631 mil paycheck
The adult-not-adult site continues to thrive post-pandemic. Traffic and subscriptions on OnlyFans, an online platform owned by Fenix International, have been increasing steadily since 2023, which enables its owner Leonid Radvinsky to pay himself a staggering amount of USD 631 mil over a period of almost 2 years (USD1.3 bil over the past 4 years). Forbes Magazine now estimates his net worth at USD3.8 bil.

The site is mainly used by sex workers, musicians and celebrities, and is also well known for sexual content, and other number of subjects, including fitness, music and comedy.

Here’s some mind-blowing statistics related to the platform:

• Pre-tax profits were USD 658 mil in the year to November 2023 

• Almost 1 mil new content creators and more than 50 mil new "fans" signed up to the platform during the year (29% increase)

• Content creators made USD6.6 bil in 2023, with OnlyFans taking a 20% fee from each creator's earnings

• The platform's extraordinary profit is generated with a staff of just 41 people, and 1 director

OnlyFans is now being investigated over whether it is doing enough to prevent children from accessing pornography through its site. Nevertheless, it's quite obvious how and why it makes such big money. View its latest financials here.

Shorts

1. An 'argument over notebooks' led to murder and violent racist protests in India
   An argument over notebooks in a classroom turned deadly when a 15 year-old Muslim boy allegedly stabbed a Hindu classmate to death in the city of Udaipur, Rajasthan. Although the state police denied any religious angle to the incident, a wave of religious violence occurred after the case became viral on WhatsApp, where right-wing Hindu groups torched vehicles and chanted anti-Muslim slogans, leading to a curfew and internet shutdown. In 2022, two Muslim men beheaded a Hindu man, filmed and posted it online in response to a politician’s divisive remarks about Prophet Muhammad, causing unrest in Udaipur ever since. Many now fear their once-integrated Hindu-Muslim neighbourhoods are now being torn apart along religious lines.

2. SpaceX to launch first uncrewed Starships to Mars in two years

   SpaceX CEO Elon Musk has posted a statement on X confirming that SpaceX will launch its first Starships to Mars in 2 years when the next Earth-Mars transfer window opens. The uncrewed ship's purpose is to test the reliability of landing intact on Mars, and if it is successful, SpaceX will launch its first crewed flights in 4 years. The goal is to build a self-sustaining city in about 20 years, which also depends on the success of Starship, which will help him fulfil his goal of producing a large, multipurpose next-generation spacecraft capable of sending people and cargo to the moon later this decade, and subsequently to Mars.
   Watch: What is Mars launch window?

3. Selena Gomez's Rare Beauty just made her a billionaire

   Her road to fame may have started with acting and singing, but today, 32-year old Selena Gomez is a billionaire thanks to her entrepreneurial venture, Rare Beauty. Gomez’s estimated net worth is now at USD1.3 bil, where her cosmetics company accounts for roughly USD1.1 bil. The company is said not to have any parent or corporate partner, which means that it’s solely owned by Gomez, with New Theory Ventures' Nikki Eslami and CEO Scott Friedman as investors. There were rumours saying that she is seeking to sell Rare Beauty at USD2 bil valuation, but Gomez denied that such a sale was imminent.

5. FOR YOUR EYES 📺

1. During the investiture ceremony, not only Sultan Ibrahim conferred award but also imparted some health advice.

2. A throwback clip of Apple CEO Tim Cook correcting the misconception of China having low labour costs. The nation is no longer a place for cheap labour but has now developed into a place with quantity and quality of technical expertise, which Cook described China as having deep vocational expertise. Take note Malaysia — it's time to move up the value chain — fast! Elon Musk, whose Tesla has a big presence in China, agreed to this tweet that went viral recently.