The Bega Cheese Ltd (ASX: BGA) share price is dropping following the release of the company’s half-year earnings. Bega revealed a large increase in company revenue and a 10% boost to the interim dividend as a result.

So, why has the Bega share price dropped 7.75% to $4.88 (at the time of writing)? Let’s dive in…

What did Bega Cheese report?

For the first half of the 2022 financial year (ending 26 December 2021), Bega Cheese reported the following financials:

• Revenue up 113% to $1.5 billion against the prior corresponding period (pcp)
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) up 48% to $97.2 million
• Profit after tax up 29% at $28 million
• Earnings per share (EPS) down 3% at 9.3 cents per share.

Bega Cheese is continuing to reap the benefits from its Lion Dairy & Drinks acquisition announced back in November 2020. This accounted for $787 million of revenue for the half, with the integration of the business progressing well.

What else did Bega tell the market?

COVID-19 remained a challenge for Bega Cheese throughout the first half, creating a financial impact of $20 million.

It wasn’t only the workforce affected but supply chains, too. In a statement, Bega said this impacted “prices for direct and indirect internationally sourced materials such as fuel, packaging, resin and coffee”.

“Many suppliers of these products were unable to meet delivery windows creating interrupting to manufacturing schedules resulting in increased operational costs,” it said.

Net debt increased by $3.7 million (against the previous half ending 30 June 2021) to a total of $328.6 million.

The company declared a fully-franked dividend today of 5.5 cents per share to be paid on 24 March. This is a 10% increase on the FY21 interim dividend of 5 cents and represents a distribution of $16.7 million.

Bega said the boosted dividend “reflects the growth in total earnings…which has strengthened following the acquisition of Bega Dairy and Drinks”.

Why is the Bega share price falling when profits are up?

The broader market sell-off today might be part of the reason why the Bega share price has fallen despite the company reporting increased profits. The S&P/ASX 200 Index (ASX: XJO) is down 2.5% at the time of writing.

Looking forward, Bega is focused on managing COVID-19 challenges. It also intends to further capitalise on the opportunities created through its acquisition of Lion Dairy & Drinks.

It also has more products to focus on in the next financial year, including “yoghurt, nutritionals and white milk”.

Bega Cheese share price snapshot

Over the past 12 months, the Bega share price has dropped by 20%. It sunk to a 52-week low of $4.84 on 23 December following a performance update for FY22.

A week later, the share price jumped when Andrew Forrest bought a 6.61% interest in Bega for $108 million.

The company has a market capitalisation of $1.6 billion.

The post Bega Cheese (ASX:BGA) share price sinks 7% despite high half-year revenues appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares for the win in 2022
• Is now the time to rid your ASX share portfolio of COVID losers?

Motley Fool contributor Alice de Bruin 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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As most ASX investors would be aware of by now, the S&P/ASX 200 Index (ASX: XJO) is currently enduring a pretty nasty sell-off so far this Thursday. At the time of writing, the ASX 200 has lost a sobering 2.94%, putting it at a 3-week low. But it’s ASX tech shares that have arguably taken the brunt of the fear that has entered the market.

ASX 200 mining, energy, and materials shares are also in the firing line. But the S&P/ASX 200 Information Technology Index (ASX: XIJ) is leading the ASX 200’s losses, with the index down almost 5%.

So let’s dig a little deeper and see which ASX tech shares are getting the royal treatment from investors.

Tech shares take the brunt of ASX 200’s losses

ASX buy now, pay later (BNPL) leader Zip Co Ltd (ASX: Z1P) is currently down 8.6%. The new owner of Zip’s old rival Afterpay, Block Inc (ASX: SQ2), is faring even worse. Its shares are down 10.3% at $19.52. Block is now down more than 32% since its ASX debut only last month.

Life360 Inc (ASX: 360) reported its earnings this morning. Investors have clearly been spooked by what they saw as the company is down a devastating 30% at $4.60 a share.

Likewise with Appen Ltd (ASX: APX). Appen also reported this morning, and investors have arguably given its report card another decisive ‘F’, seeing as this company is down 25.7% at $6.36 a share. Appen hasn’t seen that kind of share price since at least 2017. Ouch.

Even beloved ASX 200 tech shares WiseTech Global Ltd (ASX: WTC) and Xero Limited (ASX: XRO) haven’t escaped the onslaught. Both are down 5.5%.

You get the idea.

So why are ASX tech shares getting such a hammering from investors today? Well, in many cases, it appears to be a combination of the broader market sell-off together with poorly received earnings. But due to their ‘growth’ nature, ASX tech shares are often the companies that are hardest hit in times of market turmoil and fear.

This is due to a number of potential reasons, including the higher valuations investors often allow these companies, together with their perceived longer growth runways.

But no doubt that will be of cold comfort to many ASX tech investors today. Such is the way of ASX life sometimes.

The post ASX tech shares have been smashed today as market hits 3-week low appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss
• Appen (ASX:APX) share price crashes 17% after FY21 guidance miss
• 5 things to watch on the ASX 200 on Thursday
• Why did the Zip (ASX:Z1P) share price zoom 8% higher today?
• Why Accent, Healius, PEXA, and WiseTech shares are rising today

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. owns and has recommended Appen Ltd, Block, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd, Block, Inc., WiseTech Global, and Xero. 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 City Chick Collective Ltd (ASX: CCX) share price is tumbling after the release of the company’s earnings for the first half of financial year 2022.

At the time of writing, the City Chic share price is $3.49, 30.89% lower than its previous close.

City Chic share price plunges on new inventory approach

• Sales revenue of $178.3 million – 49% more than the first half of financial year 2021
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), adjusted for certain expenses of $23.5 million – 1% higher
• Statutory net profit after tax (NPAT) of $12.3 million – 6% lower
• Cost of doing business increased to $81.5 million – 45.7% more than the prior comparable period
• Operating cash flow came to a loss of $19.4 million – down from positive $21.3 million
• No dividend declared

Over the half year just been, the women’s clothing retailer’s global customer base increased 64% to 1.32 million active customers. Additionally, 55% of City Chic’s revenue came from outside the Australia and New Zealand region.

The Australia and New Zealand region brought in $80.7 million of sales ­– a 14% increase.

In the Americas, the company received $77.2 million of sales, 62% more than the prior comparable period.

Meanwhile, in Europe, the Middle East, and Africa, the company received $20.3 million of sales to breakeven at the EBITDA level.

Its website traffic grew 71% and its online comparable sales increased 52.5% with 83% online penetration.

Such growth came despite COVID-19 impacts including labour shortages, supply chain and logistics challenges, and store closures that saw 27% of trading days lost.

Store closures cost the company around $4 million last half while it strategically invested in its inventory to manage supply chain risks.

City Chic increased lead times for its existing factories and added additional lead times for new supply partners.

As a result, the company had higher inventory levels at the end of the half and will see a further build up over the rest of the financial year.

By doing so, it hopes to secure stock for the Northern Hemisphere’s summer and key sales periods, but it will need to use more cash.

Due to COVID-19 uncertainty, investment in inventory, a decline in operating cash flows, and acquisition opportunities, the company hasn’t paid a dividend this half.

It didn’t pay a dividend for financial year 2021 either.

It ended the period with $38.7 million of cash – down 45.9% – and no borrowings.

What else happened in the half?

Over the first half, City Chic acquired European plus-size online marketplace Navabi.

The company paid $4.3 million for the acquisition in July.

On the back of the news, the City Chic share price launched 6% higher.

Additionally, it opened 8 new stores, closed 3, and relocated 8 to larger sites.

It now has 7 larger format stores with an average footprint of 220 square metres and 21 stores in its ‘gold’ design with footprints of 150 square metres.

At the end of the half, City Chic operated 94 stores.

What did management say?

City Chic CEO and managing director, Phil Ryan commented on the company’s earnings for the first half, saying:

Our revenue growth of 49.8% is very pleasing as we stayed focused on our three strategic pillars of plus size, digital, and global customer acquisition. We did this through expanding the customer base both organically and inorganically while accelerating our digital growth.

The revenue growth demonstrates that our product range and lifestyle mix across all of our assortment has global appeal.

Michael Kay, City Chic chair, commented on the company’s outlook for financial year 2022 and financial year 2023:

The COVID-19 pandemic continues to have an impact both locally and globally. The directors continue to monitor COVID-19 related developments and are working closely with management to assess and navigate the potential implications for team members, suppliers, customers, and operations.

While the environment remains uncertain, the performance of the business to date demonstrates the management team’s ability to manage volatile market conditions. We are confident we are well positioned to continue to grow our business and to lead a world of curves.

What’s next?

City Chic hasn’t provided new guidance for the second half of financial year 2022.

However, it did put out a trading update on the first 8 weeks of 2022.

The company has continued to deliver growth, but online sales growth rates in key markets have been more subdued than the prior half.

In the United States, the company’s growth has continued with strong sales on both the City Chic and Avenue website.

Sales from CoEditon – acquired by the company in January – have started strong.

Sales in the United Kingdom and Europe look to be recovering and the company’s partner businesses are showing growth.

City Chic is looking to continue its partnership as it seeks new alliances in financial years 2022 and 2023.

In the second half, it will be focusing on managing its supply chain and inventory.

City Chic share price snapshot

The City Chic share price has fallen 36% year to date.

It’s also 16% lower than it was this time last year.

The post Dividend ditched: City Chic (ASX:CCX) share price plummets 30% on half-year earnings appeared first on The Motley Fool Australia.

More reading

• Are these 2 top ASX growth shares buys?
• 2 ASX growth shares to buy this month: experts
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?

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 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 TPG Telecom Ltd (ASX: TPG) share price is in the red today on the back of the company’s full-year results.

At the time of writing, TPG Telecom’s shares are swapping hands at $5.46 apiece, a 6.98% drop. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 2.68%.

Let’s take a look at what the telecommunications giant reported today.

TPG share price falls as profits slip

Highlights of the company’s full-year (FY21) results include:

• 10.6% drop in net profit after tax (NPAT) compared to FY20 to $110 million
• 3.2% slide in earnings before interest, taxes, depreciation and amortisation (EBITDA) to $1.7 billion
• 3.1% drop in revenue to $5.3 billion
• 3.7% fall in gross margin to $2.8 billion
• Fully franked final dividend of 8.5 cents per share, up 1 cent per share on FY20

What else happened in the half?

Investors have not responded well to the results, judging by the TPG share price. However, TPG declared a boost in its dividend to shareholders despite a fall in profit. The total dividend declared for 2021 is 53% of the adjusted NPAT.

Service revenue declined 4% to $4.4 billion due largely to a drop in mobile subscribers. This was partly offset by a growth in fixed broadband customers.

EBITDA dropped more than 3% due to the “delivery of efficiencies” including labour costs.

Free cash flow improved to $410 million due to less expenditure, lower interest costs, and working capital efficiencies.

In total, TPG reported 5.02 million mobile customers, a 4% drop on FY20 due to COVID-19 travel restrictions. However, since November 2021, the company has seen a boost in mobile subscribers as international travel returns.

Fixed wireless broadband customers have jumped 1.2% to 2.22 million. Since 31 December, TPG has been building on this momentum, adding 80,000 new customers to its 4G and 5G home broadband services.

TPG delivered what it described as its “best ever network” in 2021, rolling out 1,000 5G sites that can be accessed by 85% of the population.

The company also achieved $71 million of cost synergies following its merger with Vodafone Australia in 2020.

Management commentary

Commenting on the results which have seen the TPG share price tank today, chief executive officer Inaki Berroeta said:

2021 was a year of significant progress as we unified our operations and demonstrated strong operating and financial discipline to navigate the challenging COVID operating environment and position ourselves strongly for improving market conditions.

We have been encouraged by the uptick in mobile customer numbers as international travel returns and we are optimistic about the year ahead as COVID impacts lessen.

We are targeting to more than double our fixed wireless base in 2022, with our offering providing customers with a high quality, great value alternative to the NBN.

What’s next for TPG?

TPG has recently signed a mobile operator core network agreement with Telstra Corporation Ltd (ASX: TLS) which will provide TPG with access to 3,700 of Telstra’s mobile network assets.

The telco plans to roll out its 5G network to 1,000 more sites in 2022. TPG is also targeting at least 160,000 fixed wireless subscribers in FY22. A strategic review of towers and rooftop infrastructure is close to completion.

The company has a goal to deliver more than $1 billion in enterprise revenue by the 2025 financial year.

TPG plans continue to improve cost synergies following its merger with Vodafone Australia. The company is targeting $125 million to $150 million of total merger synergies in 2022.

Commenting on this process, Berroeta added:

Having executed strongly against our objectives in 2021 amid challenging conditions, we are now in a strong position to achieve our full potential as an integrated full-service telecommunications company in coming years.

We are confident of delivering value from targeted growth initiatives, smarter asset utilisation and further simplification of our business as headwinds lessen and underlying momentum improves in 2022

TPG share price summary

The TPG share price has dived 22% in the past 12 months while it is down 7% year to date.

For perspective, the benchmark ASX 200 index has returned around 3.5% over the past year.

TPG has a market capitalisation of about $10.9 billion.

The post Profit plunge: TPG Telecom (ASX:TPG) share price slides 7% on full-year results appeared first on The Motley Fool Australia.

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• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
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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 TPG Telecom 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 Eagers Automotive Ltd (ASX: APE) share price is slipping on Thursday morning.

It seems shareholders were hoping for more than the slam dunk given on its FY21 full-year result. At the time of writing, shares in Eagers on the ASX are down 4.3% to $13.40.

Let’s dive into the company’s numbers for the full year.

Eagers share price in focus amid big year for the bottom line

• Revenue down 1% year on year to $8,663.5 million
• Underlying EBITDAI from continuing operations up 60% to $455.9 million
• Record full year statutory profit after tax of $330.7 million, up 112% year on year
• Earnings per share (EPS) up 117% to 125.2 cents per share
• Fully franked final dividend of 42.5 cents per share, up 70% year on year
• Cash position of $197.6 million as at 31 December 2021

What else happened during the half?

In a record year for ASX-listed Eagers, strong demand for vehicles led the company forward. While group revenue slipped slightly, the car retailing segment experienced an 8.6% increase in revenue to $8,438.3 million. Though, the Eagers share price is responding negatively to the result.

Notably, sales across the new vehicle market outstripped deliveries as supply chain issues continue to cause delays. As a result, Eagers’ inventory levels fell from $1,025.8 million at the end of 2020 to $874 million at the end of 2021.

However, inventory levels were also lower following the sale of the Daimler Trucks business. The discontinued operations provided a pre-tax gain of $30.2 million during the year. While on the buy side, Eagers acquired Toowoomba Ford and franchises in Cardiff and Maitland.

Eagers also made a strong push for more property during FY21. This is highlighted by the company’s $169 million worth of property acquired in the full-year period. In a similar vein, the auto retailer made investments in new retail formats including AutoMall West at Indooroopilly Shopping Centre in Brisbane.

What did management say?

Commenting on the record result, Eagers CEO Keith Thornton said:

Our record full year results reflect strong market dynamics, our disciplined focus on maximising operational performance and the continued benefits from executing the five pillars within our Next100 Strategy.

Our franchised automotive business has delivered a record year. The performance was achieved despite significant COVID-19 related disruption, with government mandated lockdowns heavily restricting trading in the second half and was supported by our simplified business and transformed cost base.

Eagers share price snapshot

An investment in Eagers shares would have been a worthwhile one over the past year. Unsurprisingly, the company has performed solidly amid the backdrop of frenzied buying of new and used vehicles.

For the past 12 months, the Eagers share price is up 13.5%. Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) is up 3.9% — which reflects an impressive outperformance of 9.6%.

The post Eagers (ASX:APE) share price sinks despite profits racing 112% higher appeared first on The Motley Fool Australia.

More reading

• ASX shares set to conquer the carnage: expert

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of global markets and dropped deep into the red. The benchmark index is currently down 2.6% to 7,019.4 points.

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

Rio Tinto falls on full year results

The Rio Tinto Limited (ASX: RIO) share price is falling on Thursday despite the mining giant releasing a record-breaking full year result. Rio Tinto reported underlying EBITDA of US$37,720 million, which is up 58% over the prior corresponding period. However, this was a touch lower than the Visible Alpha consensus estimate of US$38.5 billion. This slight miss and broad market weakness may be weighing on its shares today.

Appen share price crushed

The Appen Ltd (ASX: APX) share price has crashed lower today. Investors have been selling off the artificial intelligence data services company’s shares following the release of its full year results. In FY 2021, Appen reported a 3% increase in underlying EBITDA to US$77.7 million. This fell short of its revised guidance. Management also revealed no short term guidance but five-year growth targets. However, it warned that its pursuit of these targets could impact its near term earnings and dividends.

Flight Centre posts huge loss

The Flight Centre Travel Group Ltd (ASX: FLT) share price is sliding today after the travel agent giant reported a $188 million first half loss. Positively, though, management has reaffirmed its profitability targets. The corporate business is targeting a return profit in March-April, whereas the global leisure business is expected to return to profit later in the second half.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the CIMIC Group Ltd (ASX: CIM) share price with a 33% gain. This follows the receipt of a takeover approach. The worst performer has been the Life360 Inc (ASX: 360) share price with a 30% decline. Its full year results revealed that its losses doubled in FY 2021. It also notes privacy concerns in the tracking tech category.

The post ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss appeared first on The Motley Fool Australia.

More reading

• Cimic (ASX:CIM) share price explodes 33% higher following takeover approach
• Flight Centre (ASX:FLT) share price tumbles after posting $188m half year loss
• Life360 (ASX:360) share price plunges 26% after bleeding money in 2021
• Appen (ASX:APX) share price crashes 17% after FY21 guidance miss
• Will 2022 be the year of the cash or the crash for ASX shares?

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 and Life360, Inc. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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 Insignia Financial Ltd (ASX: IFL) share price is bucking the broader market sell-off today, currently up 0.78%.

Insignia shares closed yesterday trading at $3.86 and are now swapping hands for $3.89 apiece. However, earlier in the day they were up as high as $3.95.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 2.39% at the time of writing.

Below we look at the highlights from the ASX financial services company’s results for the half-year ending 31 December (1H FY22).

This is the first time the company, formerly IOOF Holdings, is reporting under its new name.

Insignia share price gains on improving outlook

• Underlying net profit after tax (UNPAT) of $117.9 million, up 79% from the previous corresponding period
• Net profit after tax (NPAT) was $36.2 million, down 33% from 1H FY22
• Gross margin increased 122% year-on-year to $778 million (includes a 6-month contribution from MLC)
• Interim dividend of 11.8 cents per share, fully franked, up 3% from 1H FY21
• Dividend reinvestment plan introduced with 1.5% discount

What else happened during the half?

Funds under management (FUMA) were $325.8 billion during 1H FY22, up $7.1 billion. Insignia said that growth was driven by strong market returns.

The Insignia share price could be getting a lift after the company noted an “encouraging improvement in net flows during the second quarter”. There was a $2.3 billion quarter-on-quarter improvement in net flows in the Q2 of FY22, with total net outflows falling to $20 million.

With its integration with MLC running ahead of schedule, the company said it achieved cumulative annualised savings of $122 million, with annualised savings of $66 million achieved in 1H FY22.

The decline in NPAT was due to a $35 million increase in integration and funding costs.

The interim dividend is payable on 1 April. Insignia has introduced a dividend reinvestment plan with a 1.5% discount.

What did management say?

Commenting on the results, Insignia’s CEO, Renato Mota said:

The financial results for our first full six-months of MLC ownership are strong, with significant improvement in UNPAT and revenues, and we have executed on our strategic priorities whilst continuing to simplify our business and deliver improved client outcomes.

Our focus over the half has been the integration of MLC, the simplification of platforms, including completion of the migration on to our proprietary Evolve technology, and our reshaping of the Advice business to ensure its long-term sustainability and profitability.

As part of this strategy, targeted product enhancement and repricing is now providing clients a more attractive product suite, while higher adviser education and governance standards and use of new technologies, provides an improved advice offer to our clients.

What’s next?

Looking ahead, Insignia reported it will remain focused on simplifying its operations and enhancing its product and service offerings.

“We are on track to deliver synergies of $100 to $120 million run-rate range by the end of June, and well on track to deliver the total cumulative synergy run-rate of $218 million of synergies by end of December 2022,” Mota said.

Insignia share price snapshot

The Insignia share price is up by almost 7% so far in 2022. It is also up by 13% over the past month and 14% over the past year.

For comparison, the ASX 200 has posted a year-to-date loss of more than 5% and is up almost 4% over the past 12 months.

The post Why the Insignia (ASX:IFL) share price is gaining today while the ASX 200 tanks appeared first on The Motley Fool Australia.

More reading

• Eagers (ASX:APE) share price sinks despite profits racing 112% higher
• ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss
• Sanctions are a good thing? Why Bitcoin, Ethereum, and Dogecoin are recovering nicely today
• Ramsay (ASX:RHC) share price gains as earnings ‘severely impacted’ by COVID
• NextDC (ASX:NXT) share price climbs 5% on record results

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

When investors check their watch lists for daily price action in the crypto world, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) are three of the top cryptocurrencies most often looked at for an idea of which direction the winds are blowing on a given day. As of noon ET today, these three top tokens have appreciated 2.6%, 4%, and 2.9%, respectively, over the past 24 hours. 

These strong moves higher are noteworthy for a few reasons. From a macro level, global macroeconomic uncertainty related to geopolitical tensions between Russia and Ukraine remains high. As of noon ET, all three major indexes traded lower on these concerns. However, the crypto market overall has risen dramatically, driven by outperformance from these three top tokens.

Bitcoin received a boost from investor recognition that sanctions may be more limited against Russia than previously thought. Additionally, it appears crypto is receiving a boost from news that Russia may be removed from the SWIFT payment network, a move that could boost crypto transaction volumes in the near term.

Bitcoin, Ethereum, and Dogecoin all also saw adoption pick up today. Sling TV announced that it would accept these three tokens, among others, for payment. News that a Dubai-based restaurant has opened with a Dogecoin theme also appears to have some investors excited. 

So what

The macro environment is starting to settle down, or at least investors appear to be better able to understand the risk-reward of crypto in the context of these concerns. Perhaps there’s an argument that can be made that economic sanctions could boost the value of these digital payment networks. Sometimes, bad news can be good news. Today, crypto investors appear to be interpreting the geopolitical environment as such.

Continued adoption of crypto via various corporate entities continues to drive a bullish long-term trend for investors keen on holding Bitcoin, Ethereum, and other more speculative tokens such as Dogecoin right now. Should adoption continue to increase, perhaps these near-term market-related headwinds will be an afterthought in short order.

Now what

To be sure, cryptocurrencies are likely to remain volatile assets to hold through these trying times. For top tokens such as Bitcoin and Ethereum, often thought to be among the most defensive cryptocurrencies, this holds true. For Dogecoin, this volatility risk is obviously elevated further. Accordingly, these digital assets remain risk-on trades that many investors may want to be careful with.

That said, the market appears to have an interesting take on the geopolitical issues we’re seeing right now. It’s entirely possible that investors could refocus on the crypto sector as a way for Russia, or other governments, to counteract the centralization in the global payments system. Whether this turns out to be a turning point for the market, or merely a small blip on a longer-term downtrend, remains to be seen. However, today’s price action is certainly intriguing to watch and warrants further investigation from investors. 

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

The post Sanctions are a good thing? Why Bitcoin, Ethereum, and Dogecoin are recovering nicely today appeared first on The Motley Fool Australia.

More reading

• Down 14% in a week, where to next for the Bitcoin price?
• Have Bitcoin price falls cemented gold as the best safe-haven asset?
• Ethereum price down again today as founder touts benefits of ‘crypto winter’
• Why Bitcoin, Ethereum and Dogecoin plunged this weekend
• The Ethereum (CRYPTO:ETH) price tanked this week while this crypto rallied 25%

Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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 Ramsay Health Care Limited (ASX: RHC) share price is gaining after the release of the company’s results for the first half of financial year 2022.

At the time of writing, the Ramsay share price is $64.94, 0.59% higher than its previous close.

Ramsay share price rises despite profits slumping 29%

• Revenue of $6.68 billion – 1.2% higher than that of the first half of financial year 2021
• Earnings before interest and tax (EBIT) of $489.2 million – 16.2% lower
• Statutory profit of $158.9 million – down 29.7%
• Earnings per share (EPS) of 67.7 cents – a 30.1% fall on that of the prior comparable period
• 48.5 cent fully franked interim dividend declared ­– flat with the previous interim dividend

The first half was a rough period for Ramsay Health Care as COVID-19 outbreaks hampered its business.

Its lower profit reflects the impact of movement, isolation, and surgical restrictions.

As a result, the company believes its Australian business fronted $107 million of extra costs.

Additionally, non-recurring costs brought a $34.7 million loss last half, compared to a positive contribution of $43.4 million in the prior comparable period.

However, not including non-recurring items, the company’s profits before tax ended just 1.3% lower than the prior first half.

In the Asia Pacific region, Ramsay’s revenue increased 0.5% to $2.73 billion while its EBIT fell 5.9% to $285.4 million.

It was hit harder in the United Kingdom. There, the company’s revenue increased 6.7% to $512.9 million but its EBIT tumbled 173% to a loss of $35.6 million.

In Europe, the company’s revenue grew 2.8% to around $3.23 billion while its EBIT stayed above water at $239.4 million – a 3.3% increase.

It also put $91.1 million towards its Australian investment pipeline last half. It completed $164.3 million worth of projects including 136 beds, 3 theatres, and 5 consulting suites.

What else happened during the half?

The company announced its acquisition of United Kingdom-based hospital and care home operator Elysium Healthcare last half, though it was completed in January.

The acquisition cost it around $1.4 billion. The Ramsay share price fell 0.9% on the news.

Though, its purchase of Elysium wasn’t the only acquisition talk from the United Kingdom.

In July, Spire Healthcare shareholders voted against Ramsay’s proposed roughly-$1.9 billion takeover.

Despite the disappointing news, the Ramsay share price gained 0.6% on the back of failed acquisition.

What did management say?

Ramsay CEO & Managing Director Craig McNally commented on the company’s first half results, saying:

Our [financial year 2022] interim result has been severely impacted by further waves of COVID which have impeded surgical activity, increased costs, in particular staffing costs due to isolation orders, and resulted in lower non-surgical activity due to movement restrictions. We have continued to provide our facilities and services to governments in our regions to address the impact of the pandemic on the public system and this has been, in Australia in particular, at a significant cost to the business.

Despite the complex operating environment we have remained focused on pursuing our strategic vision, investing in growing, modernising and leveraging our world class hospital network and moving purposely into new and adjacent services.

What’s next?

The remainder of financial year 2022 might be tough for Ramsay, but it’s expecting better things for the future.

Business activitity over the second half is expected to stay volatile while costs are predicted to remain high. At the same time, COVID-19’s spread and staff vacancies will likely impact activity levels.

The company believes January brought $48 million of additional costs to its Australian business due to the Omicron outbreak.

Costs for additional staffing and PPE due to the pandemic are predicted to begin to drop over the coming months but remain in place in financial year 2023.

Additionally, a backlog of elective surgeries and services is expected to benefit the business.

In Australia, a ban on elective surgeries in Victoria and New South Wales over January and part of February will likely impact the company’s full year results. Similar restrictions are set to be put in place in Western Australia next month.

Cancellations due to the availability of staff, doctors, and patients might dampen the company’s United Kingdom business in the second half.

The company is continuing to focus on its investment in brownfield expansion and the reconfiguration of its existing facilities.

It expects total spend on its Australian development pipeline to be between $190 million and $230 million in financial year 2022.

Additionally, its full year results will include 5 months of contribution from Elysium.

Ramsay Health Care share price snapshot

2022 so far has been rough on the Ramsay share price.

It has fallen 9% since the start of this year. Though, it’s still 2% higher than it was this time last year.

The post Ramsay (ASX:RHC) share price gains as earnings ‘severely impacted’ by COVID 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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 NextDC Ltd (ASX: NXT) share price is in the green today on the back of the company’s half-year results and upgraded guidance.

At the time of writing, NextDC’s shares are swapping hands at $10.70 apiece, a 4.9% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 2.21%.

Let’s take a look at what the data operator reported today.

NextDC share price jumps as revenue, profit lifts

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

• 19% increase in data centre services revenue on the prior corresponding half (pcp) to $144.5 million
• 29% boost in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $85 million
• Operating cash flow hiked 9% to $69.5 million
• Net profit after tax (NPAT) of $10.3 million, a 158% improvement on the $17.8 million net loss in the pcp
• Liquidity of $2.1 billion, including $1.4 billion of undrawn debt facilities.

What else happened in the half?

NextDC achieved this result due to a number of metrics including a 10% boost in customers on the pcp to 1,569. Interconnections also grew by 14% to 15,879, accounting for 7.3% of recurring revenue.

The company improved its contracted utilisation by 14% to 81 megawatts. Billing utilisation surged 25% to 71 megawatts.

In the first half of FY22, NextDC invested $260.7 million in capital development projects. The company also completed a $2.5 billion senior syndicated debt facility with better terms, extended tenor, and a lesser cost of debt.

NextDC continued to invest in its AXON customer connectivity platform. NextDC was named as one of just a few Amazon Web Services direct-connect high-capacity service delivery partners in the world.

The company reported a total of $2.9 billion in assets. This includes data centres in Melbourne, Sydney, Sunshine Coast, Darwin, Brisbane, Perth, and Canberra.

Management commentary

Commenting on the results boosting the NextDC share price, chief executive officer and managing director Craig Scroggie said:

We are pleased to deliver another record result in 1H22, with strong metrics across the business that now positions the company to provide upgraded earnings guidance for FY22.

NextDC’s leading national digital infrastructure platform continues to demonstrate strong growth and critical resilience as it continues to mature.

What’s next for NextDC?

NextDC has upgraded its guidance for FY22. The company predicts data services revenue between $290 and $295 million, up from $285 to $295 million.

Underlying EBITDA has also been upgraded to between $163 and $167 million, up from $160 to $165 million.

And capital expenditure has been upgraded to between $530 million and $580 million, up from $480 to $540 million.

Commenting on the future outlook, Scroggie added:

As a result of the strong 1H22 performance, the company is able to upgrade its FY22 guidance as well as accelerate project investments in 2H22.

With liquidity of over $2 billion, combined with record operating cash flow, NextDC is in an outstanding position to take advantage of current and future customer opportunities and to press its advantage into new regions and edge location.

NextDC share price summary

The NextDC share price has dived 5% in the past 12 months while it is down 17% year to date.

For perspective, the benchmark ASX 200 has returned around 4% over the past year.

NextDC has a market capitalisation of about $4.66 billion.

The post NextDC (ASX:NXT) share price climbs 5% on record results appeared first on The Motley Fool Australia.

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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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