The Medibank Private Ltd (ASX: MPL) share price is slipping on Friday afternoon. This comes after the private health insurer announced its first-half results for financial year 2022.

At the time of writing, Medibank shares are swapping hands for $3.065, down 3.31%.

Medibank share price slides on mixed H1 FY22 results

The Medibank share price is heading south today following a softened performance by the company. Here are the key financial numbers for the six months ending 31 December 2021:

• Group revenue from external customers of $3.58 billion, up 4% on the prior corresponding period (H1 FY21 $3,442.2 million);
• Group net profit after tax (NPAT) of $220.2 million, down 2.7% (H1 FY21 $226.4 million);
• Earnings per share (EPS) of 7.7 cents, up 4.4% (H1 FY21 7.4 cents); and
• Fully franked interim dividend of 6.1 cents per share (cps), up 5.2% (H1 FY21 5.8 cps).

How did Medibank perform in H1 FY22?

Medibank recorded a relatively resilient financial performance against the backdrop of the COVID-19 pandemic.

Resident policyholders lifted by 1.5% or 28,100 over the six-month period. Management noted that much of this growth continues to be driven by younger people and those who haven’t held private health insurance previously.

In addition, Medibank reported high levels of customer advocacy, with Service NPS up for both Medibank (+8.9) and ahm (+2.2) compared to 30 June 2021. NPS is the net promoter score, used to measure customer loyalty and satisfaction.

The group achieved operating profit growth in both its Health Insurance and Medibank Health businesses. These numbers surged to $26.3 million (up 10.3%), and $6.9 million (up 36.7%), respectively.

While group operating profit was up 12.3%, this had been offset by a $40.9 million or 57% decrease in net investment income. This dragged down Medibank’s bottom line, with NPAT decreasing 2.7% to $220.2 million.

What did management say?

CEO David Koczkar touched on the results possibly impacting the Medibank share price today, saying:

Today we have delivered a strong result showing that our focus on our customers and our strategy to grow as a health company is working.

Health remains the key issue that concerns people in Australia. This focus has seen a positive shift in attitudes towards private health insurance and has seen continued policyholder growth across both the Medibank and ahm brands.

Koczkar also said elective surgery restrictions during the pandemic had taken a toll.

Now is the right time for governments to minimise future use of restrictions to elective surgery. These restrictions for surgeries have impacted the quality of life for our customers and increased the pressure in the health system.

While some surgeries may be called elective, for our customers they are anything but. The recent easing of restrictions on some surgeries is welcome but we believe a plan is needed to avoid these restrictions for patients in the future.

What’s the outlook for Medibank?

For the current second half, Medibank will continue to assess claims activity. Any permanent net claims savings due to COVID-19 will be given back to customers through additional support programs.

In terms of policyholder numbers, the company is striving to reach 3.1% to 3.3% policyholder growth in FY22.

Underlying average net claims expense per policy unit is forecast to be around 2.3% among resident policyholders.

Medibank stated that it remains on track to deliver $15 million in productivity savings in FY22. In total, management expenses are predicted to come in at roughly $530 million for the full year.

Medibank share price snapshot

It’s been a tough start to 2022 for the Medibank share price. It’s down 8% year to date and 4.5% over the past month. However, it is up 11% over the past year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 2.5% over the past 12 months but is down 6% this year to date.

The post Medibank (ASX:MPL) share price backtracks as profit slips appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• 5 things to watch on the ASX 200 on Friday
• Medibank (ASX:MPL) share price lifts despite rumours of failed hospital bid
• Sweet dreams: ASX 200 shares that have provided big returns without the worry
• Could this give Medibank (ASX:MPL) shares a boost during earnings season?

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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A shareholder of AGL Energy Ltd Ltd (ASX: AGL) has said the planned demerger would be “value destructive and environmentally disastrous”.

The ‘activist’ investor Snowcap based out of London published a letter to the leadership of AGL.

‘Value destructive’ demerger

Snowcap said that AGL shareholders are currently faced with two “suboptimal” options.

The current plan is the demerger, which Snapcap described as a value destructive and environmentally disastrous plan backed by management. It said that the takeover offer materially undervalued the AGL business.

The demerger plan is to split AGL into an energy retailing business and an energy generation business called Accel Energy. It’s Accel that will own the coal power plant assets.

Management believe that each business being able to decide on the best decisions for long-term value creation will be more effective.

Snowcap said that the demerger is flawed and is a “half-baked” attempt by management to financially engineer its way around AGL’s problems rather than address the root cause. The investor believes that the demerger wouldn’t address environmental concerns and it would make coal closure much harder.

However, it must be said that AGL has stated that each of its businesses would be aiming to reduce their carbon emissions by around half over the next decade or so.

Snowcap throws shade at management’s performance

The investor said that AGL needs to pursue a third option: abandon the demerger and takeover talks, instead it should aggressively transition away from coal by 2030.

Mike Cannon-Brookes and Brookfield also want to accelerate the transition away from coal energy generation, but Snowcap argues that doing so within a combined, ASX-listed AGL “has the potential to unlock substantial value” for AGL shareholders, whilst delivering “huge” environmental and social benefits.

Snowcap said that the AGL share price has underperformed its peers and the wider Australian market and now trades at a “substantial” discount to the intrinsic value.

The investor said that AGL hasn’t adapted to the changing energy markets and a shift of investor attitudes about climate. It was pointed out that over the last decade, AGL has acquired nearly 7GW of coal power but “severely under-investing” in renewables.

Snowcap says AGL is now of the most carbon-intensive utilities on the planet and has refused to “meaningfully” bringing forward the retirement dates of the two largest coal plants – Loy Yang A and Bayswater, which are currently 2045 and 2033 respectively.

That compares to Origin Energy Ltd (ASX: ORG) which is closing the large coal power plant Eraring seven years early.

Up to 60% upside for the AGL share price?

Snowcap believes that by making the changes it has suggested – abandoning the demerger and closing the coal power plants early – could lead to an upside of between 30% to 60% for investors and avoid 385 million tonnes of future greenhouse gas emissions.

The commitment of an early coal closure can address the “core reason” for the current AGL discount and deliver huge maintenance capex savings over the coming decade.

Regarding the takeover bid, Snowcap said that it recognises the flaws of the demerger proposal and the strategic merits of an early transition. It noted there are advantages to managing the transition under the transparency and accountability of public ownership.

The post Shareholder calls out AGL (ASX:AGL) planned demerger as ‘value destructive’ appeared first on The Motley Fool Australia.

More reading

• These 5 ASX 200 shares are trading ex-dividend today
• Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL)
• AGL gets an offer and Australians return to the skies. Scott Phillips on Nine’s Late News
• ASX 200 shares stage comeback amid Russia optimism
• Here are the top 10 ASX shares today

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 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 Electro Optic Systems Holdings Ltd (ASX: EOS) are charging 10% higher in afternoon trade on Friday following the release of a company announcement.

At the time of writing, Electro Optic shares are fetching $2.04 apiece, after rallying as much as 18% and as low as 5% from yesterday’s close, before settling at its current levels.

Why’s the Electro Optic share price charging higher today?

Electro Optic operates in two divisions, namely defence systems and space systems. Within space systems, the defence and communications player operates as 3 entities.

Today the company advised that its wholly-owned subsidiary, SpaceLink, has achieved an upgraded communication satellite design with the aim of boosting profitability with significantly improved margins on cost.

According to Electro, the subsidiary is developing a constellation of Medium Earth Orbit satellites to create the ‘communications superhighway for the space economy’.

SpaceLink has made several purported breakthroughs in its satellites, like bettering the design by “integrating higher bandwidth communication terminals on both small and large satellites”, and reducing the cost of initial capability deployment from US$750million to US$240 million.

Electro Optic notes this cost decrease includes satellites, launch, ground-based infrastructure and operating expenses to achieve profitability.

Not only that, but Electro says it has also brought the date for initial operational capability (IOC) at SpaceLink forward from mid-2024 to early-2024.

What’s this mean for Electro Optic Systems?

Part of this decision hinged on the company’s allocated communication spectrum, which comprises 21 Ghz of radio frequency spectrum, per the release.

“SpaceLink is required under its [Federal Communication Commission] FCC licence to initiate use of the spectrum for space communications before mid-2024. Achieving this milestone secures SpaceLink’s rights to the spectrum”, the company said.

Consequently, this move will allow the company to meet customer requirements and lock in SpaceLink’s spectrum licenses by meeting the FCC regulatory milestone date in mid-2024.

The release also states that SpaceLink expects “planned 2024 capability will meet an increasingly urgent need for secure and resilient space communication services”.

As a result, the company reckons that customer revenue estimates for SpaceLink are hovering around US$240 million over the first 30 months of service.

However, the scale of these project changes means that the initial tranche of funding for SpaceLink’s ventures has been wound back and replaced by alternative funding sources.

From here, Electro Optic says it has received proposals for the new satellites and has vetted two vendors “with compliant solutions”.

“Final selection and contract award is expected in April 2022 with initial operational capability scheduled for Q2 2024”, the company remarked.

Electro Optic Systems share price snapshot

In the last 12 months, the Electro Optic share price has collapsed more than 58% and is down 13% this year to date. Over the previous month however, investors have shown support and shares have climbed 2% into the green.

The post Electro Optic (ASX:EOS) share price rockets 18% on ‘breakthrough’ satellite news appeared first on The Motley Fool Australia.

More reading

• Shareholder calls out AGL (ASX:AGL) planned demerger as ‘value destructive’
• Why Adbri, Appen, Block, and Life360 shares are storming higher
• How might the Ukraine crisis impact the Woodside (ASX:WPL) share price?
• Why Treasury (ASX:TWE) shares could be a hidden dividend trove
• Why is the Newcrest (ASX:NCM) share price sliding lower on Friday?

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. owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end a difficult week on a positive note. At the time of writing, the benchmark index is up 0.2% to 7,003.2 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Adbri Ltd (ASX: ABC)

The Adbri share price is up 9% to $3.29. This follows the release of the building materials company’s full year results. For the 12 months, Adbri reported an 8% increase in revenue to $1.56 billion and a 25% jump in net profit after tax to $116.7 million. This was despite the company battling COVID-19 impacts during the period.

Appen Ltd (ASX: APX)

The Appen share price has rebounded from yesterday’s selloff with an 11% gain to $6.78. Investors may have been buying the artificial intelligence data services company’s shares after the team at Jefferies suggested its shares were great value. This morning the broker retained its buy rating with a trimmed price target of $12.00. This is notably higher than where its shares trade at today.

Block Inc CDI (ASX: SQ2)

The Block share price has rocketed 33% higher to $154.70. This follows the release of the payment giant’s full year results. For the 12 months, Block reported a gross profit of US$4.42 billion, which was up 62% year on year. Things were even better for its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), which increased 114% year-on-year to US$1.01 billion.

Life360 Inc (ASX: 360)

The Life360 share price is also rebounding from a savage selloff yesterday with a gain of 21% to $5.67. This morning the team at Bell Potter retained its buy rating but trimmed its price target to $10.00. The broker continues to forecast strong revenue growth in the coming years and appears to see yesterday’s selloff as a buying opportunity.

The post Why Adbri, Appen, Block, and Life360 shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Adbri (ASX:ABC) share price soars 9% amid higher profit in full-year earnings
• Here’s why the Appen (ASX:APX) share price is racing 14% higher today
• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• Why is the Life360 (ASX:360) share price jumping 17% today?
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., and Life360, Inc. The Motley Fool Australia owns and has recommended Appen Ltd and Block, Inc. 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 slipping into the red as the end of the week draws near.

In afternoon trade, Woodside shares are down 1.3% to $27.72. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is shaking off the geopolitical uncertainty, moving 0.45% to the upside.

Woodside share price positioned for LNG rise

Oddly enough, the Woodside share price is not reacting positively to Brent crude oil hitting US$100 a barrel last night for the first time since 2014. This milestone was overshadowed by the ongoing attack launched by Russia on Ukraine.

As conflict ensues, Europe fears Russia could weaponise the energy market, cutting off supply to an already constricted market. This follows the scrapping of the 1,230 kilometre-long Nord Stream 2 natural gas pipeline between Russia and Germany.

With roughly 40% of Europe’s imported gas coming from Russia, a sudden halt in supply would create a massive shortfall. As such, some analysts believe more upside in liquified natural gas (LNG) prices could be a possibility.

Saul Kavonic, energy analyst at Credit Suisse, believes the Woodside share price could benefit from a supply shock. According to the analyst, there would be a US$940 million revenue boost for each US$10 per metric million British thermal unit (MMBtu) increase in LNG prices.

Furthermore, the local energy producer’s new policy to keep ~25% of its LNG on the table for the spot market will mean it has supply readily available to sell into the premium prices.

Should a more severe gas supply shortage in Europe develop, amidst rising geopolitical tensions, Woodside could see a multi-billion-dollar windfall this year.

Saul Kavonic, Credit Suisse

An extra US$3 billion of revenue

In a statement sure to raise the hairs on the back of any Woodside shareholder’s neck in anticipation — Kavonic detailed a scenario that would see the company land US$3 billion in additional revenue.

Admittedly, the analyst says it would be unlikely. However, if LNG prices were to reach US$100 per MMBtu, it would provide a breathtaking result for Woodside.

For context, the company recently reported US$6.962 billion in revenue for FY21. The Woodside share price rallied to a new 52-week high on the news.

The post How might the Ukraine crisis impact the Woodside (ASX:WPL) share price? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX 200 value shares to buy for higher inflation: fundie

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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The Treasury Wine Estates Ltd (ASX: TWE) share price has been a bit of a muted performer of late. It’s lost close to 6.6% so far in 2022 but remains up 4.4% over the past 12 months. This ASX 200 share has escaped some of the volatility that the broader markets have seen this week, having lost 2.3% over the past five trading days. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down more than 3% over the same period.

Treasury reported its earnings for the half-year ending 31 December 2021 last week. While it contained a mixed bag of results, income investors were likely pleased that the company maintained its interim dividend at 15 cents per share, fully franked. That’s the same interim dividend that investors received last year.

Looking back at Treasury’s history of paying dividends, it arguably has a fairly strong record in this department. So let’s dig in.

What does the dividend history of Treasury shares look like?

This interim dividend brings the total amount paid out over the past year to 28 cents per share. As it happens, that was also the total amount that investors received in 2020.

However, unlike the 13 and 15 cents per share payouts that shareholders received in 2021, the 2020 payments consisted of an interim dividend of 20 cents and a final dividend of 8 cents.

But all of these 28 cent annual payments pale in comparison to what Treasury doled out in 2019.

In Treasury’s last pre-pandemic full year, investors received dividends worth 38 cents per share. That was the culmination of a streak of annual dividend increases that Treasury gave investors stretching back to 2014. Back then, the company’s annual dividend was worth just 13 cents per share. That means that, between 2014 and 2019, Treasury grew its annual dividend by almost 200%.

Now, obviously, things have gotten a little off track for the company since then. Treasury has not only had to navigate the effects of the pandemic but also the sharp deterioration in diplomatic relations between Australia and China.

China was a potent growth market for Treasury. Thus, the restrictions that the Chinese Communist Party has placed on Australian exports (including wine) have been hurting Treasury in recent years.

But it can’t be denied that this company’s long-term dividend history has been very kind to investors. No doubt Treasury shareholders will hope that the company’s final dividend later this year will restart Treasury’s dividend growth streak.

Treasury shares are swapping hands at $11.64 today, which gives Treasury a trailing dividend yield of 2.4%.

The post Why Treasury (ASX:TWE) shares could be a hidden dividend trove appeared first on The Motley Fool Australia.

More reading

• 3 of the best results on the ASX 200 last week
• Why CSL, Liontown, Nearmap, and Treasury Wine shares are storming higher
• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• Cheers! Treasury Wine (ASX:TWE) share price jumps 13% on half year results
• 2 of the ‘best’ ASX shares to buy right now

Motley Fool contributor Sebastian Bowen 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 Treasury Wine Estates 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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The S&P/ASX 200 Index (ASX: XJO) can’t seem to decide what to do with the week’s last trading day. The ASX 200 is currently down by a tentative 0.03%, but has been rather wild all day. That’s perhaps no surprise, given what is happening in the world right now. But in what may be a surprise, the Newcrest Mining Ltd (ASX: NCM) share price is underperforming the market so far today.  

Newcrest was one of the precious few ASX 200 shares not to be heavily sold off yesterday. In fact, this gold miner finished the day up a pleasing 4.15%. During times of geopolitical turmoil, investors often flock to gold, and by extension, the companies that mine it. This is probably what we saw occurring yesterday.

But today, the Newcrest share price is going backwards, giving up much of yesterday’s gains. Newcrest shares are presently trading at $24.98 each, down 2.52% so far. 

Gold is money? Newcrest’s latest dividend leaves the ASX

Gold prices have slipped over the past few hours, as my Fool colleague James outlined this morning. So that is probably why we are seeing weakness across most of the ASX gold sector today. But in Newcrest’s case, something else is also at play. 

The miner has traded ex-dividend today. Yes, from today, new shareholders will not be entitled to receive Newcrest’s upcoming interim dividend payout. Thus, the value of this payment has left the Newcrest share price, as is typical when an ASX dividend share goes ‘ex-div’. 

It was only last week that Newcrest released its half-year earnings report to the markets. As we covered at the time, the gold miner reported an increase in its gold reserves, but a fall in revenues, profits and production. However, Newcrest did declare an interim dividend of 7.5 US cents per share, fully franked. That equates to 10.4 cents in our currency. This dividend will hit shareholders’ bank accounts on 31 March. 

Unfortunately for shareholders, this payment was a lot lower than either Newcrest’s prior interim dividend of 19.3 cents per share, or its previous final dividend of 55.2 cents per share. 

But this dividend is at least partially responsible for the falls we are seeing in Newcrest shares this Friday. 

At the current Newcrest share price, this ASX 200 gold miner has a dividend yield of 2.62%. 

The post Why is the Newcrest (ASX:NCM) share price sliding lower on Friday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 gold shares shining bright amid market selloff
• These are some of the only ASX shares in the green today. Here’s why
• Here’s why the Northern Star (ASX:NST) share price had such a stellar day
• Here’s why ASX 200 gold shares turned sharply lower mid-day today

Motley Fool contributor Sebastian Bowen owns Newcrest Mining Limited. 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 Wesfarmers Ltd (ASX: WES) share price is having a tough month.

Since the start of February, the conglomerate’s shares have lost 9% of their value.

The good news is that one leading broker believes this could be a buying opportunity.

Who is positive on the Wesfarmers share price?

A recent note out of Morgans reveals that its analysts are feeling bullish on the Wesfarmers share price.

According to the note, the broker has retained its add rating with a slightly trimmed price target of $58.50.

Based on the current Wesfarmers share price of $47.77, this implies potential upside of 22% for investors over the next 12 months.

And with Morgans forecasting a fully franked dividend of 162 cents per share in FY 2022, the total potential return on offer stretches to an even more attractive 25%.

What did the broker say?

While Wesfarmers delivered a half year result that was a touch short of its expectations earlier this month, the broker saw enough to remain positive on the future.

It commented: “Wesfarmers’ 1H22 result was largely in line at the underlying NPAT line (+1% vs MorgansF), which was not a surprise with guidance provided in January. However, the result was weaker (-5% vs MorgansF) at the underlying EBIT line.”

“Despite ongoing uncertainty in the operating environment, we think WES is well-placed to benefit when conditions improve and continue to view the stock as a core portfolio holding for long-term investors,” it added.

Overall, the broker believes Wesfarmers could be a great long term option for investors thanks to its “diversified group of retail and industrial brands, solid balance sheet and strong leadership team that will continue delivering value for shareholders.”

The post Top broker tips over 20% upside for Wesfarmers (ASX:WES) share price appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend giants to buy
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• Opportunity? 5 ASX 200 shares that traded at 52-week lows today
• The Wesfarmers (ASX:WES) share price just hit a new 52-week low. Is the smart money buying?
• Telstra, Wesfarmers, oil and unemployment: Scott Phillips on Nine’s Late News

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 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 year so far has been rough on the BetMakers Technology Group Ltd (ASX: BET) share price.

That’s despite multiple seemingly positive announcements hitting the market from the company.

At the time of writing, the BetMakers share price is 58 cents, 5.45% higher than its previous close. However, that’s also 30.12% lower than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.15% today and has fallen 8% year to date.

Let’s take a look at what’s been going on with BetMakers through 2022 so far and what could be weighing on its share price.

What’s dragging the BetMakers share price down in 2022?

The final week of January was a busy one for BetMakers. Over those 7 days, the company released 3 price-sensitive updates to the market.

First, it announced that its agreement to exclusively provide fixed odds betting for horse racing in New Jersey had been extended to cover 15 years. Additionally, under the new agreement, BetMakers would be able to sub-licence the betting product.

Next, the company released its results for the second quarter of financial year 2022, which saw it reporting its best quarter of revenue ever.

Over the 3 months ended 31 December, BetMakers recorded $24.6 million of cash receipts – a 17% increase on that of the September quarter and 521% more than the previous December quarter.

Finally, it announced that its commercial agreements with the Waterhouse Group brought in $8.2 million of revenue over the first half of this financial year.

As a result, BetMakers expects performance payments of around 14 million of options will be met in the second half – finalising all equity-based payments to the Waterhouse Group relating to its core products.

The BetMakers share price fell between 0.2% and 2.4% on all 3 announcements. There’s been no more price-sensitive news from the company in 2022.

However, there might be something else dragging its shares’ value down. BetMakers’ stock is still one of the most shorted shares on the ASX.

At the time of The Motley Fool Australia’s latest weekly short selling update, the company had a short interest of 11.3%.

That means many market participants are betting against its stock, which could be weighing on investors’ confidence.

The post Why has the BetMakers (ASX:BET) share price dumped 30% so far this year? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

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. owns and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. 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 share price of ASX communications company, Frontier Digital Ventures Ltd (ASX: FDV) has wobbled over the last 2 sessions after it announced that its profits more than doubled last year.

For those unfamiliar with the company, it specialises in providing online marketplaces and property and automotive verticals in emerging regions.

The Frontier Digital Ventures share price slumped after the company’s earnings for 2021 were released yesterday. It ended Thursday’s session 5.86% lower at $1.20.

However, it’s getting back on the horse today. At the time of writing, the Frontier Digital Ventures share price is $1.24, 2.49% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) tumbled 2.9% yesterday. It’s recovering slightly today, recording a 0.2% gain.

What’s driving this ASX communication share this lately?

The Frontier Digital Ventures share price has had a wobbly performance on the ASX after releasing its full year earnings for 2021. Here are its statutory results:

• Revenue of $51.4 million – 147% more than that of 2020
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of $5.6 million – down from last year’s loss of $3.8 million
• After tax loss of $15.1 million ­– down from last year’s approximately $13.2 million loss
• Earnings per share (EPS) came to a 4.4 cent loss – last year brough an EPS loss of 4.78 cents

On the company’s results, its founder and CEO Shaun Di Gregorio noted “the difficulties in interpreting [the company’s] statutory results given [its] mix of consolidated and equity accounted investments”.

He pointed investors to look at the company’s portfolio view of its results, instead.

They show revenue of $60.2 million – a 154% increase.

Additionally, the company’s portfolio EBITDA came to $1.9 million – an increase of $1.3 million on the prior year’s and a new record.

Over 2021, Frontier Digital Ventures recognised 383 million users across its portfolios and 1,253 million sessions.

The company also reported an unrealised currency exchange gain of $8.5 million for the period, compared to 2020’s unrealised currency exchange loss of $10.2 million.

What else happened during the half?

2021 was a busy period for the ASX communication share.

It acquired the remaining 43.7% interest in the Moroccan car marketplace, Moteur.ma in January and, in February, announced its acquisition of Chilean auto and real estate classifieds Yapo.cl.

Its acquisition of Yapo cost the company around $24 million.

It was a similar story in June and July when it fully acquired both Infocasas –  the leading property portal in Uruguay, Paraguay, and Bolivia – and Encuentra24 – a general marketplace in 5 Latin American markets.

Frontier Digital Ventures also underwent a capital raise last year, bringing in $53.9 million after offering new shares for $1.50 apiece.

The Frontier Digital Ventures share price gained 4.7% over 2021.

What did management say?

Gregorio commented on the company’s earnings for 2021, saying:

We are thrilled to report the ongoing growth of the portfolio across 2021 …

We are delighted with the performance of our key operating companies, as they leverage their market leadership positions to grow transaction revenues and enhance their long-term earnings profile.

In particular, the performance of Zameen and InfoCasas provide our other operating companies with the blueprint for high growth transactional marketplaces.

What’s next for the ASX communication share?

The company didn’t provide guidance for 2022.

However, it did say it’s continuing to explore ways to maximise value for shareholders.

Frontier Digital Ventures share price snapshot

The ASX communications company’s share price has struggled through 2022 so far.

It’s currently 20% lower than it was at the start of this year. It’s also 13% lower than it was this time last year.

The post This ASX communications share just grew revenue by 150% 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. owns and has recommended Frontier Digital Ventures Ltd. The Motley Fool Australia has recommended Frontier Digital Ventures Ltd. 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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