The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price is surging today after the fast food business announced its FY22 result and revealed Asian expansion plans.

At the time of writing, Domino’s shares are trading for $71.09 each, 6% higher, after reaching an intraday high of $73.94 a share this morning. That was a jump of more than 10%.

The 2022 financial year was a tricky one for Domino’s because it was trying to beat FY21’s numbers, which included boosted sales during COVID-19 lockdowns.

It was also tough for Domino’s to maintain its momentum in Japan after that country’s COVID-19 restrictions were lifted.

Domino’s profit drops

While Domino’s network sales increased by 4.6% to $3.92 billion, earnings before interest and tax (EBIT) dropped 10.5% to $262.9 million. Underlying net profit after tax (NPAT) also declined 12.5% to $165 million.

Australia and New Zealand EBIT grew $3.3 million, or 2.8% in percentage terms. At the same time, Asian EBIT sank 23.1%, or $25.6 million in dollar terms, due to a “rapid change in sales in Japan, following the lifting of a state of emergency”.

European EBIT fell 11%, or $9.7 million in dollar terms, with the largest driver being the increased investment in rebuilding the Danish business.

The company said it has reached a challenging but important milestone, as it transitions from ‘living with COVID’ to facing historic inflation.

Trading update

At the start of FY23, Domino’s revealed its network sales had fallen by 2.4% and same store sales had fallen 1.1%. But, it had added 13 new stores and noted that it was competing against very high sales in the prior comparable period. The Domino’s share price can be affected by how trading is going.

Management said that the business had a choice to be defensive or invest for growth at the start of COVID-19. It is continuing to choose to invest for growth.

Domino’s CEO and managing director Don Meij said a few things about the outlook, including the following about growth expectations for FY23:

With menu innovation in all markets and new, app-first technology to roll out this year – there is positive sales momentum, and we expect to be within our 3%-6% outlook for same store sales this year.

New store construction will rely on our ability to navigate inflation, and accordingly franchise profitability – our progress, combined with franchisee appetite, and investment in our people through our path to excellence, gives us confidence we will reach our store rollout target this year of 8%-10% new store openings.

Opening more stores, closer to customers, improves unit economics, builds customer satisfaction and loyalty, and will help us be the most efficient, sustainable delivery QSR.

We are a business focused on long-term growth, and we look forward to delivering.

According to reporting by The Australian, the UBS analyst Shaun Cousins said that the result missed earnings estimates due to weakness in Europe and that the organic store growth outlook was lowered, although long-term milestones were unchanged.

Same store sales growth was also below UBS estimates. But, the acquisitions in Asia were “positive”.

Asian expansion

Domino’s has entered into binding agreements to buy Domino’s Pizza businesses in Malaysia (240 stores), Singapore (38 stores), and Cambodia (nine stores).

The initial purchase price is A$214 million with an earnout payment to be determined over the next two to three years. The total consideration could be equivalent to A$142 million.  

The deal is priced at 10.1 times FY22’s normalised earnings before interest, tax, depreciation and amortisation (EBITDA).

As a result of the acquisition, Domino’s Pizza Enterprises is increasing its future store count outlook in Asia from 2,400 stores to 3,000 stores by 2033.

This deal adds around 5% to earnings per share (EPS) on a pro forma FY22 basis without synergies and excluding integration, reorganisation, and transaction costs.

Domino’s share price snapshot

Over the last month, Domino’s shares have risen by more than 3%.

The post Domino’s share price sizzles 10% higher following FY22 report, Asian expansion appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The BPH Energy Ltd (ASX: BPH) share price is on fire.

The ASX energy share is up another 11% today, putting it up an eye-popping 310% since Monday’s closing bell.

So, why are investors sending the BPH Energy share price skywards?

What’s piquing ASX investor interest? 

The BPH Energy share price has former prime minister Scott Morrison to thank for its stellar performance.

Well. Sort of.

As you’re likely aware, during the COVID-19 pandemic Morrison secretly appointed himself minister for home affairs, treasury, health, finance and resources.

Last week it emerged that in his self-appointed role as Resources Minster, Morrison nixed the approval for BPH Energy’s Petroleum Exploration Permit 11 (PEP11) offshore gas exploration project in the Sydney Basin.

Asset Energy (a wholly owned subsidiary of BPH’s investee Advent Energy Ltd) holds an 85% stake in the project; Bounty Oil & Gas NL (ASX: BUY) holds the other 15%.

So how is Morrison helping send the BPH Energy share price rocketing?

Here’s what the company reported yesterday:

In light of the recent media coverage regarding former Prime Minister Scott Morrison’s use of ministerial powers to block the PEP-11 gas exploration licence, the company is currently undertaking a full review of its options, including potential for legal channels, as part of its strategy to protect shareholder value.

Asset Energy had already commenced proceedings in the Federal Court of Australia in June. The company alleges that Morrison “was biased and failed to afford procedural fairness in his decision not to grant an extension of term and a suspension and variation of the minimum work requirements under PEP-11”.

BPH Energy noted that Prime Minister Anthony Albanese has sought advice regarding whether Morrison’s “appointments and decisions, which includes the PEP-11 decision, were beyond power”.

The company also said the PEP-11 project and proposed carbon storage project have “potential national significance”.

According to BPH Energy:

It addresses both current gas shortages and the objective of Net Zero Emissions. Advent has committed to ensuring that all the gas produced from the project is available for Australian domestic supply.

BPH Energy share price snapshot

With the recent big gains, the BPH Energy share price is up 160% in 2022. That compares to a year-to-date loss of 9% posted by the All Ordinaries Index (ASX: XAO).

The post Why has the BPH Energy share price exploded 310% in 2 days? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Scott Phillips.

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The EML Payments Ltd (ASX: EML) share price is tumbling after exiting a brief trading halt on news of fraud this morning.

The company has identified fraudulent activity within its Sentenial business. The resulting losses could amount to $7.9 million.

The EML share price is currently trading at 84.5 cents, 15.08% lower than its previous close.

Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) payments solution provider.

EML share price plunges on fraud finding

The EML Payments share price is plunging lower on Wednesday after the company announced it identified a set of fraudulent merchants within Sentenial’s debt processing business.

The company believes the fraudulent activity could leave a dint of up to 5.5 million euros ($7.9 million). Though, the ultimate impact will depend on the success of recovery actions initiated by the company.

EML is working to investigate and understand the circumstances surrounding the fraud, which mainly occurred this month and was brought to the company’s attention on Tuesday.

It has committed to inform the market of any further material findings.

The ASX 200 tech company completed its acquisition of Sentenial in September. The business provides open banking and account-to-account payments to European customers.

Today’s tumble sees the EML share price trading at its lowest point since 2016.

That’s despite the 6% surge experienced by the stock following the release of its full-year earnings and news of an on-market buyback earlier this week.

The tech share has dumped 74% since the start of 2022. It’s also trading 78% lower than it was this time last year.

For context, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has slumped 28% year to date. It has also fallen 34% over the last 12 months.

The post Why is the EML share price plummeting 15% on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Ingenia Communities Group (ASX: INA) share price is wobbling today after the seniors housing and family holidays company released its full-year FY22 results.

Ingenia shares started the session on Wednesday 1% lower at $4.62. They gradually rallied after the company released its results shortly after the market open to trade as high as $4.73.

At the time of writing, the Ingenia share price has slipped 0.43% to $4.65.

What did Ingenia Communities report?

The highlights of Ingenia’s report are below:

• Revenue of $338.1 million, up 14% on the prior corresponding period (pcp)
• Statutory profit of $100.6 million, up 38% pcp
• Underlying profit of $87.9 million, up 14% pcp
• Earnings before interest and taxes (EBIT) of $101.7 million, up 8% pcp
• Underlying earnings per share (EPS) of 23.3 cents, down 1% pcp
• Operating cash flow of $114.9 million, down 17% pcp
• Record 409 new home settlements “with significant growth forecast in coming years”
• Strong balance sheet maintained with $325 million in cash and undrawn debt
• Met FY22 guidance with EBIT growth of 8% and underlying EPS down 0.3 cents per share pcp
• Final distribution of 5.8 cents per share to be paid on 22 September
• Full-year distribution of 11 cents per share, up 4.8% pcp.

What else happened in FY22?

Ingenia has a residential property development and management division and a holidays division.

The company said its operating cash flow was lower despite a growing revenue base due to lost tourism earnings and reduced settlements resulting from COVID-19 impacts and bad weather.

In the residential real estate business, it settled 409 new homes and expanded its development pipeline by more than 50% to 6,580 sites.

lngenia CEO Simon Owen said: “During the period, we built a greater exposure to markets benefiting from internal migration and price growth, with 90% of our future development pipeline now located in Queensland and high growth coastal/regional markets.”

Ingenia described its residential rental income as “stable and predictable – and is growing”. Rental revenue went up 6% in FY22 with “continued high occupancy”.

Regarding the holidays division, Ingenia says its 40 East Coast holiday parks are “benefitting from buoyant domestic travel demand”.

Underlying EPS fell “due to an increase in securities on issue following the $475 million equity raising in November 2021, and COVID/supply chain impacts on holidays and development earnings”.

The company said it finished the year with “a well-positioned balance sheet” and with “debt capacity and capital recycling to underpin future investment”.

What did management say?

Owen said:

The result showcases that Ingenia’s key strategic drivers remain intact – an ageing population, solutions to address housing affordability, internal migration patterns and domestic travel to support long term demand.

The Group has continued to enhance its scale and market reach, with total assets increasing by more than 60% over the year.

What’s next?

In FY23, Ingenia says it expects a “material increase in the contribution from the operating business as it benefits from an expanded residential rental base and increasing holiday occupancy and rates”.

Owen said:

We remain confident in the ability of our development business to deliver growth, and prices remain affordable for downsizing residents, with flexibility to respond to changes in market conditions and consumer demand.

The Group has multiple projects commencing in FY23, with a target of 2,000 — 2,200 settlements over the three years to end FY25. Ingenia’s balance sheet provides capacity for this growth.

Regarding the holidays business, Owen said:

We expect ongoing demand as families and grey nomads continue to value local travel over international. Forward bookings through to August 2023 are up more than 30% (versus 2022) and we are seeing a trend towards the booking out of shoulder seasons, which will support annualised occupancy growth.

Ingenia provided FY23 guidance of 30% to 35% growth in EBIT and 5% to 10% growth in underlying EPS. It is targeting 525 to 550 new home settlements in FY23.

Ingenia share price snapshot

The Ingenia share price has fallen 27% year to date. Based on today’s share price and the full-year distribution for FY22, Ingenia is offering investors a yield of 2.3%.

The post Ingenia share price slips despite record home settlements and 38% profit bump in FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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The PSC Insurance Group Ltd (ASX: PSI) share price is up 5.37% today after the company released its FY22 full-year results.

The shares opened at $4.80 today — 5.26% higher than the previous closing price of $4.56. At the time of writing, the PSC Insurance share price is $4.81.

PSC Insurance offers insurance services in Australia, the United Kingdom, and New Zealand. It receives the bulk of its revenue from the UK. Let’s see what the company reported today.

What did PSC Insurance report?

The highlights of the report are as follows:

• Underlying revenue of $254.3 million, up 23% on the prior corresponding period (pcp)
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $93.5 million, up 30% pcp
• Underlying NPATA of $64 million, up 40% pcp
• Earnings per share (EPS) of 19.3 cents, up 28% pcp
• Final dividend of 7.5 cents per share, franked at 60%, payable on 12 October
• Total dividends of 12 cents per share in FY22, up 14% pcp

In its investor presentation released today, PSC said the report showed a “continuation of a long track record of growth, with ~ 20%+ compound annual growth rate (CAGR) across all financial metrics a testament to PSC’s empowered business model”.

What else happened in FY22?

The company said its FY22 EBITDA was “stronger than we envisioned” and driven by better organic growth and performances from the acquired businesses.

This time last year, the company forecasted an EBITDA range of $84 million to $89 million, which was then upgraded to $87 million to $92 million in February 2022.

PSC said recruiting high-performance professionals and purchasing businesses had enabled the company to grow in FY22.

In its statement, the company said: “Expansion of our team this year has seen us bring some wonderful groups of people into PSC via the merger with a number of businesses, the two largest of which are the teams at Alliance and AWIB.”

PSC commented further:

Looking forward we are showing signs of change and moves to respond to a changing environment.

Our partnership with AUB Group Ltd (ASX: AUB) on a large retail broking opportunity in the UK is an example. We have not traditionally partnered with other groups however are delighted to be doing it with AUB in this situation.

With the competition for broking businesses in the UK continuing to heat up, we need to be open to looking for different paths to continue our growth there. The joint venture with AUB is a good indication of our flexibility to change as our environment changes.

What’s next?

In FY23, PSC expects an annualised impact of approximately $2.6 million from the acquisitions completed in FY22. PSC also expects “continued organic growth across all of our operating segments”.

The company warned that wages costs might go up in FY23 due to strong competition for workers in all markets. In addition, now that many COVID-19 restrictions have been lifted, the company also expects travel and entertainment costs to increase as members meet more often “which should also commensurately lead to revenue growth with a small lag”.

Looking ahead, PSC stated:

We expect that the Tysers UK ‘retail’ joint venture with AUB will settle before the end of the calendar year. Based on receiving a contribution from the joint venture for a six month period, we would expect it to generate ~ A$4-5m in a share of EBITDA for FY23 (being a 50% contribution for half a year).

After accounting for the expected FY23 contribution of the Tysers UK ‘retail’ joint venture, we
expect an underlying EBITDA range of $105-110m and an underlying NPATA range of $70-73m.

PSC said “a number of additional acquisitions” are expected in FY23 but are not included in the guidance.

PSC Insurance share price snapshot

The PSC Insurance share price is up 1.8% year to date and up 15.5% over the past 12 months.

This compares to an 8.5% drop in the S&P/ASX All Ordinaries Index (ASX: XAO) in the year to date.

The All Ords is also down 6.7% over the past 12 months.

The post PSC Insurance share price rallies 5% on profit and dividend boost appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PSC Insurance Group. The Motley Fool Australia has recommended Austbrokers Holdings Limited and PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Netwealth Group Ltd (ASX: NWL) share price is up 8.7% to around $14.24 in Wednesday trading after the financial services company reported full-year total income up 20% to $173 million and net profits after tax (NPAT) up 3% to $56 million.

The company declared a fully franked final dividend of 10 cents per share, taking total FY22 dividends to 20 cents per share, an increase of 8% compared to FY21.

The Netwealth final dividend will be paid to eligible shareholders on 29 September 2022. Netwealth shares go ex-dividend on 30 August. 

Based on a Netwealth share price of $14, the stock trades at 63 times earnings and on a fully franked dividend yield of 1.43%.

Looking ahead, Netwealth said it anticipates net inflows to be in the range of $11 billion to $13 billion in FY23 as it continues to focus on profitable growth.

Over the past 12 months, Netwealth shares have fallen 8%, compared to a fall of 6.6% in the S&P/ASX 200 Index (ASX: XJO). Fellow financial services stock HUB24 Ltd (ASX: HUB) shares have fallen around 7% in the last year.

The post Netwealth lifts full-year dividend on record inflows appeared first on The Motley Fool Australia.

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Motley Fool contributor Bruce Jackson has positions in Hub24 Ltd and Netwealth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia has positions in and has recommended Hub24 Ltd and Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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

It’s been a rather difficult market to be a crypto investor of late. But despite nearly a week of consistent selling pressure, various large-cap cryptocurrencies are recovering nicely today. Ethereum (CRYPTO: ETH), Polkadot (CRYPTO: DOT) and Dogecoin (CRYPTO: DOGE) have surged 6.3%, 6.1%, and 3.1% higher, respectively, over the past 24 hours. 

These moves come as investors appear to be buying yet another bear market dip, as enthusiasm around key catalysts such as the upcoming Ethereum merge outweigh concerns around a heated debate brewing in the Ethereum community about whether validators should effectively censor certain transactions. 

Interestingly, Ethereum and Polkadot also took the top two spots in terms of most-developed blockchain ecosystems, according to a recent report by crypto analytics website Santiment using publicly available information. Investors appear keen to focus on blockchains with consistent and sustained development growth.

Dogecoin’s price action, while more subdued than its peers, appears to align relatively closely with the overall price action of the market today.

So what

Ethereum, Polkadot, and Dogecoin are three tokens many investors watch closely as both high-growth projects and gauges of sentiment in the crypto world. Today’s interesting shift toward a more bullish risk-on perspective from investors and traders is noteworthy, and all three tokens have benefited from this catalyst. But the growth metrics supporting Ethereum and Polkadot in particular are worth considering for investors taking a long-term view.

That’s because while cryptos are difficult to value, many consider the true value of a given token as representative of the value of all projects on its blockchain. For Ethereum or Polkadot, which are tokens representing blockchains with massive ecosystems, more growth should mean, in theory, higher token prices. Continued and sustained growth over a long period of time, therefore, is important to see for investors with a long-term investing horizon.

Now what

For Ethereum and Polkadot specifically, the upcoming Ethereum merge, anticipated to take place in mid-September, is a massive catalyst. This upgrade will transition the Ethereum blockchain to a more energy-efficient proof-of-stake validation mechanism. Doing so carries great potential for improved efficiency over time, albeit with some specific risks.

While both tokens have rallied substantially off their June lows, it’s clear the market is still taking a wait-and-see approach to how this merge will pan out. Despite today’s bullish price action, some investors could be inclined to stay on the sidelines.

Although I think this upgrade should be a net positive, there are certainly risks involved for these tokens. Accordingly, it will be interesting to see how these tokens perform in the weeks to come.

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

The post Why Ethereum, Polkadot, and Dogecoin are rallying nicely today appeared first on The Motley Fool Australia.

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Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. 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 Scott Phillips.

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

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The Zip Co Ltd (ASX: ZIP) share price has tumbled 58% since the company delivered its half-year results to the market.

The ASX buy now, pay later (BNPL) provider has been through a challenging year impacted by unfavourable market conditions. This includes potential regulatory headwinds and rising bad debts due to strong inflationary movements.

At Tuesday’s market close, Zip shares finished 6.12% lower at 92 cents.

Below, we take a closer look to see if investors can learn anything from the company’s last earnings season.

What happened in the first half of FY 2022?

Investors weren’t able to trade Zip shares on 28 February as the company requested a trading halt following its half-year results.

Zip explained that it signed an agreement to acquire rival BNPL provider Sezzle Inc (ASX: SZL) for approximately $491 million.

In addition, Zip undertook a $198.7 million capital raise to “support its growth and execute on the potential synergies from the transaction”.

The trading halt came in a timely manner as the company reported widening losses on the bottom line, despite operating income almost doubling.

Zip co-founder and global CEO Larry Diamond said:

We acknowledge there has been a shift in the external environment, arguably quicker and more severe than first forecasted. Accordingly, we have refined our strategy with a focus on sustainable growth in our core markets, maintaining strong unit economics – particularly credit performance, broader cost management, right-sizing our internal footprint, which accelerates our path to profitability.

Once the trading halt was lifted on 1 March, investors began to offload Zip shares.

In fact, from 28 February to 15 March, the Zip share price tanked 36% to a 52-week low, before taking a slight breather.

Eventually, Zip shares hit a multi-year low of 43.5 cents in late June on the back of extreme volatility on the ASX.

There has been a small rebound in the past couple of months. But whether the Zip share price can regain its previous highs depends on the company’s upcoming results.

No doubt, investors will be eagerly waiting for the release of Zip’s full-year results on Thursday.

Zip share price snapshot

As pressure mounts on the BNPL industry, the Zip share price has not been immune – falling almost 90% over the past 12 months.

This means its shares would need to climb 900% to break even from this time last year.

Based on the current price, Zip presides a market capitalisation of around $633 million.

The post How did the Zip share price respond last time the company reported? appeared first on The Motley Fool Australia.

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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 positions in and has recommended ZIPCOLTD FPO. 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 Scott Phillips.

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The Lottery Corporation Ltd (ASX: TLC) share price is edging into the red in midday trading amid the company announcing its full-year results for FY22.

Shares of the lotteries and Keno operator are currently fetching $4.365 each, a 1.69% drop on yesterday’s closing price. Earlier today, The Lottery Corporation share price hit an intraday high of $4.53.

Let’s go over the highlights of the report.

What did The Lottery Corporation report?

• Reported group revenue up 11.1% year over year (YoY) to $3.27 billion
• Reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 16.9% YoY to $610 million
• Reported net profit after tax (NPAT) before significant items up 14.8% YoY to $373 million
• Reported net profit after tax after significant items down 13% YoY to $347 million

The company notes that it did well in the face of COVID-19, with lottery products picking up the slack from its Keno division during lockdowns and other operational disruptions.

The Lottery Corporation stated that it completed its demerger from Tabcorp Holdings Ltd (ASX: TAH) in FY22. The demerger was first announced in May this year, with Tabcorp spinning off its lotteries and Keno businesses to create the new company.

As my Foolish colleague James Mickleboro reported at the time, the merger was done to maximise shareholder value and upside potential from future growth opportunities and give the businesses unique operating focuses.

Finally, the company said it expects to pay its first dividend in or around March next year.

What else happened in FY22?

The company reported strong results from its lotteries operating segment, with comparable revenues up 10.3% YoY to $3.25 billion and comparable EBITDA up 14.9% YoY to $600 million.

Results were underpinned by effective management of jackpot games and margin inflation through its transition to digital games, with digital turnover growing from 32.8% to 37.7% during the reported period for lotteries.

The Keno operating segment, however, underperformed with comparable revenue down 1.2% YoY to $252 million and comparable EBITDA down 4.1% YoY to $94 million.

Despite these weaknesses, the company states that its results were “largely in line” with FY21 while contending with venue closures caused by COVID-19.

What did management say?

The Lottery Corporation Managing Director & CEO Sue van der Merwe said:

In FY22 we sold over 660 million Lottery entries and delivered initiatives to enhance the customer experience. These included the Oz Lotto game change implemented in May that will deliver bigger prizes and more winners, and enhancements to our responsible play programs. The Lottery Corporation is in the business of making positive impacts. In FY22, The Lottery Corporation’s operations generated $1.7bn in lottery and Keno taxes for governments and more than $500m in commissions for newsagents, licensed venues and other retail partners.

What’s next?

Broadly, The Lottery Corporation expects to make further investments to maximise upside value from its existing gambling licences in FY23. It will also undertake additional operational measures as part of the demerger.

A specific focus of the business will be in its transition to digital as part of its omni-channel approach to offering lottery products, possibly encouraged by the strong growth it observed in this segment in FY22.

It’s also exploring the digital option for its Keno games as it intends to seek approval to incorporate digital into its recently acquired Victorian licence. This is anticipated to give users additional features on its applications and play digitally in its physical venues.

The Lottery Corporation share price snapshot

The Lottery Corporation share price is currently down 6.5% since it listed in May. In the same time period, the S&P/ASX 200 Index (ASX: XJO) is down around 1.66%.

The company’s market capitalisation is currently $9.78 billion taking into account today’s share price action.

The post Lottery Corporation share price drops despite $373 million profit appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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 Scott Phillips.

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I had something else planned to write today.

Truth be told, it’s already written, but I’ll send it another time.

(For once, I have that feeling I never had at school of actually being ahead on my homework!)

Instead, I talked the team into letting me do something different.

See, tomorrow at 3pm AEST, I’m going to be hosting a live YouTube chat.

(Spoiler alert: I’m going to be giving you the heads-up on how I’m thinking about this market, and two companies I’m going to be buying shares in – before I do it!)

Different, in the sense that it’s not an article like this.

And different in the sense that I’ve never done one of these on YouTube before and, well… either it’s going to be great, or it’s going to all fall in a heap and be car crash TV!

No, I’m not worried about the content.

It’s my ability to smoothly host a YouTube Live that I’m most worried about.

So, I’d like you to tune in for the content.

But if you’d prefer, just tune in to watch me walk the YouTube tightrope without a net!

(Maybe both?)

But I’m getting ahead of myself.

The reason I wanted to do this was two-fold:

First, the market has been all over the place.

I know, from the questions we get from all sources (members, readers, podcast listeners), that there’s a general sense of unease, but also that a lot of people have questions.

And I figure a live chat, including Q&A, is a great way to both get your questions and to share the answers with as many people as possible.

Second, come inside the tent for a minute. Investors are funny people. Yes, I’m including myself in that group.

But right now, funny in a particular way.

See, when share prices are riding high, everyone wants to be at the party.

And when they’re low, or falling, or there’s uncertainty… well, it can feel like we only have tumbleweeds for company.

Which is both understandable… and a shame.

Because I reckon the money is made in the buying and the holding.

And the best time to buy?

When shares are cheap, relative to the future prospects of the business.

You know when Afterpay-mania was at its peak?

When the share price was at all-time highs.

You probably know that was a while ago… and the ride has been painful, since.

It’s the same for the ‘hot stocks’ in any category.

But not just them.

Cochlear Limited (ASX: COH) fell from $80-odd to about $55 a few years back when it did a product recall, as investors abandoned ship.

Now?

They’re selling for $215 a piece.

Commonwealth Bank of Australia (ASX: CBA) fell from $90 to $57 during the COVID crash.

They’re now $97 each.

My point?

The time to buy – to get real value – is when others aren’t.

When the value of the business’ future profits is being ignored by investors.

Times like, well, perhaps now.

The ‘inside the tent’ bit?

We have far more people interested in our services when the market is running hot than when it’s not.

Which is… counterproductive.

Yes, for us, obviously.

But also for them.

If I’m right, and the future is bright for democratic capitalism (and for the ASX and many, perhaps most, of the companies listed on our bourse), then this is the time you want to be investing.

Not because I know it’s the bottom.

Not because shares can’t fall further.

But because if the future is brighter than the present, waiting would, on average, seem counterproductive, no?

Anyway… enough of that, for now, at least.

Bottom line: If you want to hear my thoughts on investing and the markets…

If you want to ask me a question (or just hear my answers to others’ questions)…

If you want to know the next two companies I’m going to buy shares in (yes, before I do it)…

Then I hope you’ll tune in to the video.

And if I convince you that now is a good time, then I’ll also have a link to a very good price to join one of the services I run, Motley Fool Share Advisor.

(But no pressure. No obligation. And I won’t be “selling”. I’ll just give you the link at the end if you want to get started. If not, or if you want to do it yourself, that’s cool, too!)

Some of you reading this are already members. Thank you. I hope you’ll join us. And if you’re not? I hope you’ll join us, too.

(Are you there tree people? I’m singing for you, too! Kids, ask your parents about that reference.)

So clear your diaries for 3pm AEST tomorrow.

And use this link to RSVP so we can send you the YouTube Live link (it’ll come through about an hour before we kick off).

See you there!

Fool on!

The post Tomorrow: What I’m thinking and what I’m about to buy… appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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