Category: Stock Market

The Telstra Corporation Ltd (ASX: TLS) share price has come under pressure on Thursday.

At the time of writing, the telco giant’s shares are down over 3% to $3.94.

Why is the Telstra share price falling?

Investors have been selling down the Telstra share price following the release of its half year results.

In case you missed it, for the six months ended 31 December, Telstra reported a 4.4% decline in revenue to $10.5 billion but a 5.1% lift in underlying EBITDA to $3.5 billion. This reflects one-off benefits in the prior corresponding period, solid growth in the mobile business, and a 6.7% decline in operating expenses to $7.4 billion.

In respect to dividends, the telco has declared a fully franked interim dividend of 8 cents per share. This was flat compared to the prior corresponding period.

Looking ahead, management has reaffirmed its FY 2022 guidance. This includes full year underlying EBITDA of $7 billion to $7.3 billion and free cash flow after lease liabilities of $3.5 billion to $3.9 billion.

How does this compare?

The team at Goldman Sachs was pleased with the result and notes that its “strong mobile beat offsets fixed declines.” In fact, despite what the Telstra share price performance today might indicate, the company’s earnings actually came in ahead of the broker’s expectations.

Goldman commented: “Telstra has reported underlying 1H22 Income/EBITDA/NPAT of A$10.7bn/A$3.5bn/A$825mn, which was -2%/+2%/+16% vs. our estimates. Cash conversion was strong with GOCF = 97% of EBITDA. Balance sheet gearing decreased marginally to 1.9X ND/EBITDA at 1H22 (vs. 2X at FY21, comfort bands 1.5-2X). An interim dividend of 8¢ps was declared (GSe 8¢ps), comprising a 6¢ps ordinary and 2¢ps special.”

The broker was particularly pleased with the performance of the key mobile business.

It said: “Mobile again the standout, with EBITDA +8% vs. GSe on strong mobile service revenues (+1% vs. GSe). We note although postpaid ARPU growth and subscriber growth were largely in-line with GSe, TLS was also impacted by a $1.50 (3%) ARPU accounting impact which would have a stronger revenue outcome & hence explains the EBITDA beat.”

Goldman currently has a neutral rating and $4.40 price target on the Telstra share price. Though, that could change once it has fully digested the result.

Overall, a solid result from the telco giant but some investors appear to have been expecting even better.

The post Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend
• 5 things to watch on the ASX 200 on Thursday
• Own Telstra (ASX:TLS) shares? Here’s what to watch when the ASX 200 telco reports this week
• These are some of the top performing ASX 200 value shares of the past year

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on form again and pushing higher. The benchmark index is currently up 0.65% to 7,332.7 points.

Here’s what is happening on the ASX 200 today:

Telstra’s half year results

The Telstra Corporation Ltd (ASX: TLS) share price is sliding today despite delivering underlying earnings growth during the first half. Telstra posted a 4.4% decline in revenue to $10.5 billion but a 5.1% increase in underlying EBITDA to $3.5 billion. The latter was supported by growth in the key mobile business and a 6.7% reduction in operating expenses to $7.4 billion. Telstra maintained its interim dividend at 8 cents per share.

Wesfarmers half year update

The Wesfarmers Ltd (ASX: WES) share price is sinking today after its half year results disappointed. The conglomerate reported broadly flat revenue but a 14.2% decline in net profit after tax to $1.2 billion. This reflects the loss of ~34,000 store trading days due to closures during COVID-19 outbreaks.

Woodside triples its profits in FY 2021

The Woodside Petroleum Limited (ASX: WPL) share price hit a 52-week high this morning after more than tripling its profits in FY 2021. Thanks to a modest increase in sales volumes and a surge in realised prices per barrel, Woodside reported a 93% increase in operating revenue to US$6,962 million and a 262% jump in underlying net profit after tax to US$1,620 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the NRW Holdings Limited (ASX: NWH) share price with an 11% gain. This morning it reported a 26% increase in first half operating earnings. The worst performer has been the Wesfarmers share price with a 6% decline following its half year update.

The post ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report appeared first on The Motley Fool Australia.

More reading

• Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings
• Wesfarmers (ASX:WES) share price on watch after ‘most disrupted period’ since COVID onset
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend
• 2 ASX dividend shares that could provide steady passive income
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The metaverse is becoming a popular investment theme of late. Investors are scrambling for stock ideas to avoid missing out on what many are suggesting will be a huge trend.

While much about the metaverse is speculative right now and lots of new companies are coming to market with their ideas for capitalizing on it, investors do not have to buy in on unknown or unproven startups to benefit from the tailwind. There are well-established companies that investors can bet on to ride the metaverse story.

Let’s explore two of these metaverse stocks that might just be worth buying and holding for the next decade of development.

1. Meta Platforms: The social media-turned-metaverse contender

Meta Platforms (NASDAQ: FB), formerly known as Facebook, has been a social media platform for most of its existence. With more than 3 billion monthly active users, Meta is used by almost half of the global population who access at least one of its family of apps — Facebook, Facebook Messenger, Instagram, and WhatsApp.

While its social media apps generate most of the revenue — with income mainly from advertising — Meta made a strategic move last year to pivot the company’s focus toward the metaverse. In this new frontier, Meta aims to help users maintain a feeling of physical presence, beyond just text and video, when connecting with anyone, anywhere.

For example, today, we video call our family members who live in another location using Facebook Messenger, Whatsapp, or another video streaming program. But in the metaverse world, we can put on our VR headsets and be together with our family members in a virtual space. The experience will be similar to watching Avatar in a 3D cinema. The difference is that we can interact with the virtual avatars of our family members. Or imagine a world where we can attend any live concert, globally, without leaving the comfort of our homes. All we need is to put on Meta’s Oculus headset and our favorite artists appear in front of us (at least virtually). And while we are at the concert, we can make purchases in a virtual marketplace and the products we buy can be virtual as well (like dressing our avatar in a concert T-shirt) or real (like buying an actual concert T-shirt) and the products are then shipped to our homes. These are just some early and basic examples of what we can experience in a metaverse.

So what is Meta’s role in this gigantic shift? To start, the company wants to help develop the core technologies — like virtual reality (VR) and augmented reality (AR) — as well as the social platforms that will bring the metaverse to life. It will also focus on building a more inclusive community, ensuring that privacy and safety, open standards, and the appropriate governance are all there from the start.

While all these sound good and exciting, investors should note that the metaverse will take years, if not decades, to become mainstream. Along the way, Meta will need to invest heavily in technology, talent, and partnerships to pull this off. It helps that the tech company has an advertising business that generates billions in profit annually, billions of active users, thousands of world-class talents (developers), and a visionary founder who has significant skin in the game.

With these ingredients in place, Meta can take a long-term approach toward building its metaverse business.

2. Tencent Holdings: The leading technology conglomerate in China

Tencent Holdings (OTC: TCEHY) is one of the most valuable companies in China thanks to its wide-ranging business activities. It is the leading Chinese company in online games, social media, mobile messaging, fintech, and more. Think of it as the combination of Meta, Activision Blizzard, and PayPal Holdings. Besides its fully owned businesses, Tencent is also an investor in some of the best companies globally, including Meituan, Pinduoduo, Sea Limited, Spotify Technology, and Snap, just to mention a few.

Unlike Meta, which has shifted its whole company to focus on metaverse, Tencent has yet to make such a major change to its business model. Nevertheless, the latter’s exposure to the metaverse is in no way less significant.

To start, Tencent is already an active participant in metaverse via its exposure to video games. As the largest gaming company in China, the company is well-positioned to take the next step of making its games more interactive and immersive. To this end, Tencent has all the resources — cash, developers, and users — to pivot its gaming business toward that direction.

Besides, it has exposure to other leading gaming companies — such as Epic Games and Roblox — to help it ride the metaverse trend. For example, Tencent and Roblox have a joint venture that will distribute Roblox’s content in China. In other words, Tencent will benefit directly (from accessing Roblox’s content) and indirectly (from watching and learning Roblox’s moves) so long as it maintains its partnership with Roblox.

On top of that, Tencent has recently acquired Chinese gaming-focused specialty smartphone maker Black Shark as a move into the AR/VR hardware business. This move completes the puzzle within Tencent’s metaverse plan since the company already has all the necessary pieces through its wide-ranging businesses.

In short, investors looking to ride the metaverse tailwind might want to keep Tencent on their radar. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 Metaverse stocks of the future appeared first on The Motley Fool Australia.

More reading

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• What exactly is the metaverse and how are investors making money from it?
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• Meta’s metaverse losses pour cold water on these 3 cryptocurrencies

Lawrence Nga owns Pinduoduo Inc. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Activision Blizzard, Meta Platforms, Inc., PayPal Holdings, Roblox Corporation, Sea Limited, Spotify Technology, and Tencent Holdings. The Motley Fool Australia has recommended Activision Blizzard, Meta Platforms, Inc., and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Tabcorp Holdings Ltd (ASX: TAH) share price is climbing today amid record growth in its lotteries business.

Tabcorp shares are swapping hands at $5.43 apiece, a 5.44% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is rising less than 1%.

Let’s take a look at what the gambling entertainment company reported today.

Tabcorp share price in the green on half-year results

Highlights of the company’s half-year (H1 FY22) results include:

• Group revenue of $2,934 million, up 2.2% on previous corresponding period (PCP) of H1 FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 5.5% on PCP to $529 million
• Statutory net profit after tax (NPAT) of $175 million, down 5.4%
• NPAT before significant items of $187 million, down 9.7%
• Interim dividend of 6.5 cents per share, down 13.3% on PCP. This is a payment ratio of 77% of NPAT before significant items.

What else happened in the half?

Lotteries and Keno revenue grew by 10.9% on the PCP to $1,784 million, while EBITDA grew 15.1% to $358 million. This was a record result for Tabcorp.

Active registered customers in this business grew by 5% to $3.88 million. The digital share of lotteries turnover grew to 36.7%, a 4.6% improvement on PCP. Saturday Lotto turnover also surged 16%. Keno revenue fell 9.8% due to the impact of COVID-19 lockdowns.

Wagering and Media revenue fell 9.8% to $1,073 million, while EBITDA dropped 34.8% to $148 million. Revenue was “heavily impacted” by retail shutdowns in NSW with 102 lost days in city venues and 74 lost days in regional NSW. Once venues reopened in 2022, growth and performance improved.

Active TAB users in Q2 FY22 grew 7,000 from the PCP to 641,000.

Finally, gaming services revenues surged 6.8% to $78 million, while EBITDA fell 4.5% to $21 million. Revenues were impacted by COVID-19 given the significant fee relief provided to customers. Gaming Services returned to a full fee model on 1 December.

Management commentary

Speaking on the results helping to fuel the Tabcorp share price today, managing director and CEO David Attenborough said:

The record result from the Lotteries and Keno business again showcased the broad appeal of the business’ much-loved products and brands, and the success of its omni-channel strategy.

While the wagering and media business was significantly impacted by the retail lockdowns imposed in NSW and Victoria, its performance across all channels improved once restrictions were lifted.

Gaming Services maintained its ethos of supporting its licensed venue partners in challenging times and provided significant fee relief to customers whose trade was impacted by COVID-19 restrictions.

As we have throughout the pandemic, our focus was on managing the operational and financial impacts on our businesses, as well as prioritising our people’s wellbeing and supporting the recovery of our business partners.

What’s next

Tabcorp is working on growth initiatives across the company. A new TAB app will be launched in 2022, while improvements to Oz Lotto are also on the way.

The demerger of the Lotteries and Keno business is on track to take place in June 2022 subject to approvals. This business would be known as The Lottery Corporation. Planning and execution on this demerger is making good progress.

Tabcorp is targeting $20 to $25 million in EBIT savings from its optimisation program in FY22.

Tabcorp share price summary

The Tabcorp share price has surged nearly 23% in the past year, while it is up around 8% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.

Tabcorp has a market capitalisation of roughly $12 billion based on today’s share price.

The post Winning ticket: Tabcorp (ASX:TAH) share price jumps 5% on record lotteries result appeared first on The Motley Fool Australia.

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• Morgans names 4 more of the best ASX shares to buy in February

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in coal operator Whitehaven Coal Ltd (ASX:WHC) are falling this morning, down 6.5% to $2.87 following the release of the company’s half-yearly results.

Whitehaven share price softens despite record profitability

The six months ending 31 December 2021 were hallmarked by several investment highlights, including:

• Record first-half year EBITDA of $632.6 million and net profit after tax (NPAT) of $340.5 million
• Average achieved coal price for H1 FY22 of A$202/tonne
• Cash generated from operations of $567.4 million
• EBITDA margin of 55% on own coal sales (A$102/tonne versus A$5/tonne last year)
• Net debt of $403.4m as at 31 December 2021, which is 50% lower than at 30 June 2021
• Board has declared an interim unfranked dividend of 8 cents per share
• Board will undertake an on-market share buyback program of up to 10% of issued shares, capped at $400m
• FY22 guidance remains unchanged.

What else happened this half for Whitehaven?

It was an all-green year for Whitehaven and its profitability. Revenue grew 106% year on year (YoY) to $1.44 billion, and operating leverage enabled a record EBITDA of $632 million – up 1,600% YoY.

This carried through to another NPAT record and a 934% leap in cash from operations from the year prior.

Whitehaven notes it is on track to repay in full its senior bank facility shortly. It will be in a positive net cash position in March 2022 at its current run rate.

Gearing was subsequently reduced by 48% but this was offset by a 19% increase in the realised unit cost to $83/tonne.

Investors might recall the company agreed to acquire the 1% Private Royalty over the Narrabri Coal mine from Anglo Pacific Group plc.

Whitehaven said: “The consideration of US$26.6 million, plus contingent revenue participation payments, is payable over five years to 31 December 2026. During the half, the company made the first payment US$4.4 million”.

Management commentary

Speaking on the announcement, Whitehaven CEO Paul Flynn said:

High prices for thermal coal have driven record half year earnings and cash flows. Our rate of cash generation means debt is now all but paid down and affords considerable flexibility in regards to capital management. The Board’s decision to restart dividends and implement an on-market share buyback delivers value for our shareholders both today, and over the longer term. In a world where access to reliable and affordable energy is more important than ever, our investment thesis is a compelling one.

What’s next for Whitehaven?

According to Whitehaven: “The ongoing energy shortage is reflected in the prices being offered for spot physical gC NEWC coal deliveries where prices are approaching US$300/tonne in the first quarter of CY22”.

As such, the company expects demand for seaborne thermal coal to “remain strong in CY22 and the supply side response to those high prices to remain muted”.

“Coal prices are expected to be well supported over CY22”, Whitehaven concluded.

Whitehaven share price snapshot

In the last 12 months, the Whitehaven share price has jumped 90% and is up 8% this year to date.

The share price is gaining considerable support in February and is up 11.5% for the month already.

The post Another record: Whitehaven (ASX:WHC) share price sinks 6% despite NPAT soaring to new heights appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Data#3 Limited (ASX: DTL) share price is edging higher on Thursday. This comes after the company released its half-year results for the 2022 financial year.

At the time of writing, the business technology solutions company’s shares are fetching for $5.47, up 0.92%.

Data#3 share price advances on half-year result

The Data#3 share price is in the green today after the company delivered its result for the six months ending 31 December 2021. Here are some of the key highlights:

• Revenue of $999.3 million, up 16% (H1 FY21 $856.74 million)
• Earnings before interest, tax, depreciation and amortisation (EBITA) of $19.11 million, up 35% (H1 FY21 $14.06 million)
• Net profit after tax (NPAT) of $12.35 million, up 31.7% (H1 FY21 $9.38 million)
• Earnings Per Share (EPS) of 8.01 cents, up 31.5% (H1 FY21 6.09 per share)
• Fully franked interim dividend of 7.25 cents per share, up 31.8% (H1 FY21 5.50 cents).

What happened in FY22 for Data#3?

Data#3 highlighted that the growing demand for its solutions led to strong revenue and earnings growth. This included a surge in public cloud revenues, up 34.8% to $466.7 million, as major organisations and government departments transferred to a cloud-based infrastructure.

Recurring revenues grew to reach approximately 65% of total revenue, up from 62% in the previous corresponding period. Contracts with government and large corporate customers attributed to the positive result.

The consolidated net profit before tax (NPBT) increased by 33% to $18.5 million, slightly ahead of the guidance provided on 18 January 2022.

While the FY21 backlog caused by the global shortage of computer chips and integrated circuits provided a fast start to FY22, the group experienced a similar backlog at the end of December.

Data#3 advised that it has adapted to the continued supply chain shortages and delays, with early ordering and contingency planning now being widely adopted.

What did management say?

Data#3 CEO and managing director, Laurence Baynham touched on the result, saying:

We are very pleased with the strong first half performance, which reflects solid contributions from each of our business units and regions. This was underpinned by diligent execution of our strategy as we grew our software and services businesses and recurring revenue base.

We maintained strong levels of service to our large, long-term customer base while further strengthening key supplier relationships through our highly experienced and committed team.

What’s the outlook for Data#3?

Looking ahead, Data#3 revealed that it’s well-positioned to capitalise on large-scale digital transformation projects, particularly in software and services.

While the Australian IT market is predicted to grow at a record rate in 2022, the company will seek to expand its services businesses.

The ongoing supply constraints caused by the global shortage of computer chips and integrated circuits is expected to run into FY23. However, the industry has adapted to these longer lead times, thereby minimising the impact.

Data#3 stated that while the robust performance is continuing in the second-half, no guidance could be given for FY22. This is due to pandemic-related uncertainties which remain.

Nonetheless, the company did note that it is forecasting a sales peak in May and June, and a higher profit skew in the second half.

The post Interim dividend up 32%: Data#3 (ASX:DTL) share price edges higher on ‘strong first half performance’ appeared first on The Motley Fool Australia.

More reading

• Why Allkem, BrainChip, Data#3, and JB Hi-Fi shares are charging higher
• Why the Data#3 (ASX:DTL) share price is rocketing 11% today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside Petroleum Limited (ASX: WPL) share price is pushing higher on Thursday following the release of its full year results.

In early trade, the energy producer’s shares were up as much as 4% to a 52-week high of $27.66.

Woodside share price hits 52-week high amid strong profit growth

• Annual sales volume rose 4.5% to 111.6 MMboe
• Realised price surged 86% to US$60.30 per boe
• Operating revenue up 93% to US$6,962 million
• Operating cash flow jumped 105% to US$3,792 million
• Underlying net profit after tax jumped 262% to US$1,620 million
• Fully franked final dividend increased 255% to 105 US cents

What happened in FY 2021?

FY 2021 was all about rising oil and gas prices. Thanks to an 86% increase in its realised price to US$60.30 per boe and a modest 4.5% lift in annual sales volume, Woodside almost doubled its operating revenue to US$6,962 million.

And with the company’s unit production cost only rising 10% to US$5.30 per boe, Woodside’s profits grew at an even quicker rate over the period. The company reported a 262% jump in underlying net profit after tax to US$1,620 million.

This, and its strong cash flow generation, allowed the Woodside Board to declare a US$1.05 per share fully franked final dividend. This was up 255% over the prior corresponding period and brought its full year dividend to US$1.35 per share.

Management commentary

Woodside’s CEO, Meg O’Neill, was pleased with the year and is optimistic on the future. Particularly given the company’s merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

She said: “Woodside ended 2021 in a strong financial position. Our higher underlying full-year profit of $1,620 million and free cash flow of $851 million reflected our consistent operational performance, the improved price environment for our products and the proactive decisions made to manage our sales portfolio.”

“Our agreement to merge with BHP‘s petroleum business is expected to create a global energy company which would have the cash generation and balance sheet strength to deliver shareholder returns through economic cycles, opportunities to realise ongoing synergies and greater capacity to participate in the energy transition.”

Outlook

Management has provided guidance for FY 2022, which excludes the impacts of the impending BHP merger. It expects production in FY 2022 to increase 1% to 7.5% to between 92MMboe and 98MMboe.

As for its investments, Woodside’s investment expenditure guidance is US$3,800 million to US$4,200 million. This excludes the benefit of Global Infrastructure Partners’ additional contribution of approximately $822 million for Pluto Train 2 and excludes any impact from the proposed merger.

The post Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
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• Here’s why the Woodside (ASX:WPL) share price just cracked a new 52-week high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Origin Energy Ltd (ASX: ORG) share price is in focus today following the release of the company’s half-year results for FY22.

Upon opening, the company’s shares have slipped 5.9% to $5.74.

Origin share price dips as losses continue through first half

• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $1,099 million, down 4.8%
• Free cash flow for the half fell 46% to $355 million
• Underlying net profit after tax (NPAT) up 18% on prior corresponding period to $268 million
• Statutory net loss after tax narrows to $131 million, up from $183 million loss
• Unfranked interim dividend of 12.5 cents per share, staying flat from HY2021
• Customer accounts up 47,000 to 4.313 million.

What else happened in the first half?

Origin had a mixed bag of events throughout the first half. However, a dominant force on the company’s results was continued economic disruptions from COVID-19. In addition, the energy market is being challenged by hindered demand and tariff pressure.

Meanwhile, Origin’s interest in Australia Pacific LNG (APLNG) performed solidly. During the half, APLNG achieved record revenue as commodity prices ran hot. In turn, the natural gas producer handed down a cash distribution of $555 million. However, this doesn’t appear to be enough to keep the Origin Energy share price out of the red today.

Furthermore, the company’s partial sale of APLNG weighed on Origin’s statutory results. According to the release, the $131 million loss reflects a one-off impairment and net capital gains tax expense. The energy giant agreed to sell the 10% stake for $2.12 billion in October 2021.

Another notable item in today’s announcement is Origin Energy’s proposed plans to accelerate its exit from coal-fired power generation. In a separate release, Origin informed shareholders it plans to retire Eraring Power Station early in August 2025. The company intends to replace the plant with a large-scale battery.

The company said the changing energy market means traditional baseload power stations are less viable.

What did management say?

Origin CEO, Frank Calabria, commented on the results, saying:

Superior field performance and an ability to keep costs low, has put the business in a strong position to benefit from the buoyant commodities market. Australia Pacific LNG is expected to distribute more than $1.1 billion in cash to Origin for the full-year, net of oil hedging.

With regard to the company’s investment in UK-based Octopus Energy, Calabria said:

More broadly, Origin’s strategic investment in Octopus continues to outperform, with a tripling in the company’s valuation to more than £3 billion. Octopus has now established a retail presence in seven of the world’s largest deregulated energy markets and has increased its UK energy customer numbers by 2.7 million in the past 15 months.

What’s next?

The future of the Origin Energy share price rests on what is next for the company. Fortunately for shareholders, Origin now expects its underlying EBITDA for FY22 to be higher than previously estimated. The latest forecast suggests EBITDA could be between $1,950 million to $2,250 million.

On the energy markets front, the company is sticking with FY22 guidance of $50 million to $600 million in underlying EBITDA. Meanwhile, the uplift is suspected to come from its integrated gas division, as oil prices remain elevated.

Finally, Origin shareholders can expect to receive their interim dividend on 25 March.

Origin share price recap

Origin Energy has been relishing higher oil prices this year. Thanks to its continued interest in APLNG, the company can capture the gains in multi-year high prices per barrel.

The Origin Energy share price is up 8.7% since the beginning of the year. This takes the company’s gain to 26.7% over the last 12 months. Compared to the S&P/ASX 200 Index (ASX: XJO), this represents an outperformance of 20.7% in a one-year timeframe.

The post Origin (ASX:ORG) share price slides 5% following another half of losses appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Meta Platforms (NASDAQ: FB) slid Wednesday morning after it was reported late Tuesday that the company is paying $90 million to settle a data-privacy-related class-action lawsuit. 

The tech stock was down by 2.9% as of 12:19 p.m. ET. 

So what 

For Meta, $90 million isn’t exactly a lot of money — its revenue in the fourth quarter alone was $33.7 billion. But the settlement is significant in that it adds one more dark spot to the company’s already tarnished reputation. 

This particular class-action lawsuit, which is a decade old, alleged that Facebook continued to track its users online even after they had logged out of the social media platform. 

Another notable lawsuit the company put behind it last year was also focused on user privacy. That suit, which Meta agreed to pay $650 million to settle, alleged that Facebook’s tagging feature violated Illinois state law. 

Then, just two days ago, Texas Attorney General Ken Paxton said that his state was suing Meta, alleging that Facebook had collected biometric data about users without their consent.

Now what 

Back in November, Facebook shut down its facial-recognition system, which it had used to scan images and videos, and identify the people in them, saying that “… the many specific instances where facial recognition can be helpful need to be weighed against growing concerns about the use of this technology as a whole.”  

But based on the recent lawsuit settlements and the new lawsuit filings, it appears that Facebook’s parent company isn’t finished dealing with its troubles on the privacy front. Those could continue to weigh down Meta’s stock — at least in the short term — as the company tries to transition away from its social media roots and focus on its metaverse ambitions. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here’s why Meta Platforms stock is down today appeared first on The Motley Fool Australia.

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Chris Neiger has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Transurban Group (ASX: TCL) share price is edging higher in early trade, up 0.5%.

Transurban shares closed yesterday at $12.88 and are currently trading for $12.95 per share.

Below we take a look at the ASX toll road developer and operator’s financial results for the half year ending 31 December (1H22).

Transurban share price edges up despite earnings dip

• Total revenue (proportional) of $1.22 billion, down 0.4% year-on-year
• Proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) of $805 million, down 4.1% from 1H21
• Loss from continuing and discontinued operations of $106 million, down from $448 million loss in the prior corresponding half year.
• Free cash (including capital releases) declined 1.6% to $459 million
• Dividend of 15 cents per share (cps), unfranked, the same as in 1H21

What else happened during the financial half year?

A 4.8% drop in average daily traffic across its portfolio continued to throw up headwinds for the Transurban share price during the half year.

The company said COVID-19 restrictions put into place by governments reduced vehicle numbers on its roads. But numbers picked up in the second quarter as these restrictions eased.

Transurban increased its proportional ownership in WestConnex to 50% “alongside strategically aligned partners”. This extended the company’s weighted average concession life to roughly 30 years.

In other major developments during the half year, Transurban reached an agreement over “long standing disputes” surrounding Victoria’s West Gate Tunnel Project. Under the reworked agreement, the project is now expected to be completed towards the end of 2025. All parties will pitch in extra funding. Transurban reported that its contribution consists of a”$1.7 billion contribution to the cost of the D&C contract plus approximately $300 million in additional costs including insurance and project management costs”.

The company said its 15 cps dividend was entirely covered by its half year free cash. The dividend will be paid on 22 February and the Distribution Reinvestment Plan (DRP) is active.

What did management say?

Commenting on the results, Transurban CEO Scott Charlton said:

The progress we have made during the half allows us to commence 2022 with a focus on our operations and the delivery of the pipeline of development and enhancement projects across our markets…

We are investing in transportation networks that will be in operation for decades. In the past 10 years we have expanded from seven to 21 assets across five markets, resulting in an average concession life of around 30 years.

What’s next?

Transurban said it expects FY22 dividends to be in line with its free cash, excluding capital releases.

The company has a large pipeline of opportunities progressing in its core market of North America and Australia, which could be helping support the Transurban share price moves today.

Looking ahead, Charlton said, “We continue to manage our balance sheet to support our investment in future growth and distributions to our security holders.”

Atop the FY22 dividend payment, Charlton said, “We are likely to use a portion of the additional WestConnex Capital Releases resulting from the acquisition to minimise dilution associated with the equity raise.”

Transurban share price snapshot

The Transurban share price is down 8% so far in 2022, trailing the 3% year-to-date loss posted by the S&P/ASX 200 Index (ASX: XJO).

The post Earnings dip fails to derail Transurban (ASX:TCL) share price today appeared first on The Motley Fool Australia.

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• Own Transurban (ASX:TCL) shares? Here’s what to watch when the company reports this week
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• Here’s why Transurban (ASX:TCL) shares could be in for some investor TLC
• Morgans names 4 more of the best ASX shares to buy in February

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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