The Codan Limited (ASX: CDA) share price is struggling today and is now 3.62% in the red at $8.53.

It’s been a rollercoaster day for the ASX tech share, which jumped out of the blocks to $9.05, before slumping as low as $8.21 — a 7% fall on its previous closing price.

The share price movement comes after the release of the company’s first-half result for the period ending 31 December 2021.

Codan share price sinks despite record profit

The metal detection-focused technology company highlighted several investment takeouts, including:

• Highest half-year profit in the company’s history
• Communications orderbook of $163 million, $71 million expected to ship H2 FY22
• Excellent results from Minelab given geo-political disruptions and a return to more normal levels of demand after COVID-19 impacted FY21
• Secured higher inventory heading into the second quarter
• Net profit after tax (NPAT) of $50.1 million, a 21% increase
• Group sales of $257 million, a 32% increase against FY21 record first half
• Interim dividend of 13.0 cents, fully franked, representing a 24% increase on the previous payment
• Earnings per share (EPS) of 27.6 cents, up 21%

What else happened this half for Codan?

The company came into FY22 with “negative working capital due to prepayments from a number of large customers last year to secure supply”.

As such, these factors led Codan to invest an additional $65 million in working capital in the first half. This decision was helped by “a near-record sales month in December 2021 and positioning DTC and Zetron for growth”.

Codan says these figures will start to normalise over the next 6 months and that “positive cash flows will follow”.

The company paid down around $10 million of its liabilities such that net debt dropped to $38 million in January 2022.

First-half metal detection sales over the last 3 years have been FY20 $100 million, FY21 $155 million, and FY22 $138 million.

This boiled down to efficiency and prioritising cost and improving margins, the company noted.

“Despite the reduction in sales this year, the business delivered a near-record first-half profit result with a clear focus on improving margins and on cost efficiency,” the company said.

“As the market leader in the sector we were able to pass on price increases as required and the management of our supply chain meant that we reduced freight costs against global trend.

“For these reasons, we were pleased with the performance of the business.”

Management commentary

The result has done little for the Codan share price. However, recently appointed chief executive Alf Ianniello was upbeat about the company’s future. He said:

I am excited to join an exceptional business with strong culture and foundations. Our vision at Codan is to achieve consistent growth through the delivery of world class technology and innovation. We will do this by implementing the strategic growth plan and looking for opportunities to further strengthen the business via acquisitions.

What’s next for Codan?

With respect to guidance, Codan notes “there are a number of factors that are relevant when considering the outlook for FY22”.

These include “the successful uptake of GPX6000® gold detectors into the developing world; the resolution of the on-going civil unrest in Sudan; the extent to which DTC and Zetron will exceed their initial full-year profit targets”.

“The Board is not in a position to provide full-year profit guidance at this point, however, we will continue to keep shareholders updated as the year progresses,” Codan said.

Codan share price snapshot

The Codan share price has sunk more than 34% in the past 12 months. It has also fallen around 8% this year to date.

The post Codan (ASX:CDA) share price sinks despite best profit in years appeared first on The Motley Fool Australia.

More reading

• Fundie says this beaten up ASX All Ordinaries share is set to surge in 2022
• These were the worst performing ASX 200 shares last week
• Why did these tech shares lead the ASX 200 today?
• These were the best performing ASX 200 shares last week
• Why A2 Milk, Baby Bunting, Codan, and Sezzle shares are surging higher

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

from The Motley Fool Australia https://ift.tt/2nKITjO

The Crown Resorts Ltd (ASX: CWN) share price is in the red after the release of the company’s earnings for the first half of financial year 2021.

At the time of writing, the Crown share price is $12.55, 0.08% lower than its previous close.

Crown share price falls after dividend ditched

• Statutory revenue of $778.6 million – 34% more than the prior comparable period
• Net profit after tax (NPAT) came to a loss of $196.3 million – a greater hit than the previous first half’s $120.9 million loss
• Costs from closures came to $79.2 million
• No dividend declared

The first half of financial year 2022 was a rough 6 months for Crown.

The company’s corporate costs increased to $94.7 million – up from $50.5 million – mainly due to higher legal and consulting fees born from various regulatory inquiries.

Its operating cash flow came to an outflow of $203.5 million over the period ­– reflecting COVID-19 impacts.

Crown also made several cash payments during the half related to items including the underpayment of casino tax by Crown Melbourne, a shortfall on a minimum gaming tax obligation in Melbourne, and payment towards the cost of the Bergin Inquiry.

Captial expenditure came to $69 million. Around half was due to Crown Sydney’s construction and offset by $252.8 million from the sale of its apartments.

Crown’s lack of interim dividend spurs from negotiations with banks regarding its financing arrangements.

Crown’s non-gaming revenue grew to $36.1 million, compared to around $900,000 in the prior comparable period.

Its non-gaming earnings before interest, tax, depreciation, and amortisation (EBITDA) came at a $35.7 million loss – compared to a loss of $26 million in the prior first half.

It recognised $14.8 million of closure costs and a profit of $54.8 million on disposing Crown Sydney Apartments.

Crown Aspinalls saw an EBITDA loss of $5.5 million, compared to a loss of $23 million.

Crown’s digital operations came to $69.5 million, 12.7% less than during the prior comparable period. Meanwhile, its EBITDA came to $14.3 million – a 38.4% drop.

The company ended the half with around $1.5 billion of debt and $630.7 million of cash.

What else happened during the half?

The first half of financial year 2022 saw the company battling COVID-19 impacts.

Crown Melbourne was closed for 96 days over the half while Crown Sydney was closed for 102 days.

Crown Aspinalls was also forced to close for parts of the half due to operational constraints. When open, it suffered from subdued international travel, staff shortages, and reduced operating hours.

The company’s hotels saw 17% occupancy during the period. However, after reopening in October, hotel occupancy averaged nearly 40%.

Now that the Victorian Royal Commission and evidentiary hearings of the Perth Casino Royal Commission have closed, the company expects its corporate costs to be lower in the second half.

Crown also settled a shareholder class action during the half for $125 million. It paid $20 million towards the settlement last half. The settlement is conditional on Federal Court approval.

Crown Melbourne brought in $265 million of revenue over the first half – up from $97.1 million in the prior first half. Its EBITDA came to a loss of $79.6 million – up 3.7% from the prior period’s $87.8 million loss.

The company’s Perth casino saw $402.9 million of revenue – a 1.5% drop. It reported $105.8 million of EBITDA, down 34.8%.

Finally, Crown Sydney’s gaming areas are still in limbo as Crown works through the consultation process with the casino’s regulator, the Independent Liquor and Gaming Authority.

What did management say?

Crown managing director and CEO Steve McCann commented on the company’s half year results, saying:

Crown’s first half performance reflects the continued challenging operating conditions as a result of COVID19 as well as the impact of ongoing regulatory matters.

While we do not underestimate current headwinds facing Crown, there is growing confidence we have turned the corner. All three of our domestic resorts are back open, with a vaccination strategy to combat COVID-19 providing a pathway forward for our staff, the business and the wider community.

Importantly, we continue to build momentum on our company-wide reforms, accelerating work on our remediation plan and making significant advances across multiple regulatory processes. Not only are we building a stronger business, we are working well with the regulators with a priority to deliver a safe and responsible world-class gaming operation.

In Victoria, we are working in a collaborative and constructive manner with the Special Manager and his office, as well as the new regulator, the VGCCC, to ensure that we build a safe and responsible gaming environment at Crown Melbourne as we seek to re-establish our suitability to hold a casino licence in Victoria.

What’s next?

Those interested in the Crown share price might be disappointed to learn that the company hasn’t provided guidance for the remainder of financial year 2022.

It says the continuing Omicron outbreak and its recent performance means that it’s still operating in an uncertain environment.

It also expects that the reopening of Western Australia’s border will impact its performance in the second half.

Simultaneously, it’s still involved in several regulatory and litigation processes, the outcomes of which are unknown.

Though, it expects Crown Melbourne and Crown Perth will be hit with civil penalty proceedings at the conclusion of AUSTRAC’s ongoing investigation.

The company said its reforms, while driving important changes, will bring higher costs in the second half. It will also be hit with costs from regulatory oversight.

Crown expects full year corporate costs to be around $150 million.

Additionally, Crown is hoping to be able to announce the opening of the Sydney casino’s gaming floor shortly. From there, opening will occur in a staged process.

It’s also progressing sales of the Crown Sydney apartments, with almost $1.2 billion in gross sales and presale commitments to date. Based on current progress, Crown is focused on selling all remaining apartments by 30 June 2022.

The company is awaiting the final report from the Perth Casino Royal Commission. It’s due to drop in early March.

Finally, on Monday the company announced that its planning to be acquired by Blackstone for $8.9 billion.

Crown also provided an update on the start of the second half this morning.

For the first 6 weeks of 2022, revenue of Crown Melbourne was down 16% on that of the prior 6-week period.

Meanwhile, that of Crown Perth and Crown Sydney were down 23% and 20% respectively on their average weekly revenues during the first half while the properties were open.

Crown share price snapshot

Today’s falls included, the Crown share price is 5% higher than it was at the start of 2022.

It has also gained 30% since this time last year.

The post Crown (ASX:CWN) share price dips despite growing confidence the company has ‘turned the corner’ appeared first on The Motley Fool Australia.

More reading

• Why Bendigo and Adelaide Bank, Crown, JB Hi-Fi, and Newcrest are pushing higher
• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• Crown (ASX:CWN) share price higher after accepting $8.9bn takeover offer
• What’s JP Morgan saying about the Crown Casino (ASX:CWN) saga?

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.

from The Motley Fool Australia https://ift.tt/0lyB6ah

BHP Group Ltd (ASX: BHP) shares were not immune from the panic selling that ensued in the early months of the pandemic.

Like most S&P/ASX 200 Index (ASX: XJO) companies, the iron ore giant saw its share price crash. In a matter of weeks, from late February into early March 2020, BHP shares plunged more than 30%.

Since those lows, the BHP share price has come roaring back, up 81% from 13 March 2020.

But the big miner is taking COVID seriously.

As it seeks to ensure the safety of its workforce, and make sure they’re able to deploy to its far-flung sites, BHP has mandated all of its staff be vaccinated.

Hundreds of employees could be ousted

While BHP expects 97%–98% of its Aussie workforce will be jabbed, that could leave as many as 700 unvaccinated employees heading for the door, either by resigning or being sacked.

As The Australian reported, “About 250 employees in the company’s Queensland operations have been put on notice they face termination after not providing proof of their COVID vaccination.”

As of 31 January, BHP now requires anyone entering its workplaces to provide proof of vaccination. That not only impacts BHP’s 23,800 odd workers, but also a host of contractors who will need to prove they’ve been vaccinated to work on BHP sites.

Commenting on the development, a BHP spokesman said (quoted by The Australian):

This is a necessary health and safety measure to help protect our people, their families and communities – including remote Indigenous communities – while continuing to safely run our – operations. We will continue to work with our people as we implement this change.

The mining union, which lost a legal challenge to BHP’s vaccine mandate, called the situation “very intense”.

According to CFMEU Queensland mining division president Stephen Smyth, “It’s quite complex and very, very intense the way they went about it when they started issuing the letters one or two days after January 31. We’ve also got contractors and labour-hire companies terminating people as well.”

How have BHP shares been performing?

BHP shares have benefited from a resurgent iron ore price in recent months.

That’s helped drive the BHP share price to a 14% year-to-date gain, compared to a loss of 3% posted by the ASX 200.

The post Own BHP (ASX:BHP) shares? Here’s how the ASX 200 miner is battling COVID appeared first on The Motley Fool Australia.

More reading

• Is BHP (ASX:BHP) the best ASX dividend share?
• Why BHP, Fortescue, Netwealth, and Santos shares are falling
• Top brokers name 3 ASX shares to buy today
• BHP’s stunning dividend, rates to rise, energy falls. Scott Phillips on Nine’s Late News
• Is it a buy? Top brokers rate BHP (ASX:BHP) share price after solid earnings

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.

from The Motley Fool Australia https://ift.tt/0ozbPtk

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

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

Why is the Telstra share price falling?

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

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

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

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

How does this compare?

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

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

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

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

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

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

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

More reading

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

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

from The Motley Fool Australia https://ift.tt/MF3rvsn

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

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

Telstra’s half year results

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

Wesfarmers half year update

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

Woodside triples its profits in FY 2021

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

Best and worst ASX 200 performers

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

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

More reading

• Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings
• Wesfarmers (ASX:WES) share price on watch after ‘most disrupted period’ since COVID onset
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend
• 2 ASX dividend shares that could provide steady passive income
• Is BHP (ASX:BHP) the best ASX dividend share?

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

from The Motley Fool Australia https://ift.tt/IBAjzOK

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

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

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

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

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

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

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

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

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

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

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

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

2. Tencent Holdings: The leading technology conglomerate in China

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

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

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

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

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

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

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

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

More reading

• Here’s why Meta Platforms stock is down today
• Why Meta Platforms stock just jumped higher
• What exactly is the metaverse and how are investors making money from it?
• The week ahead: Confidence, ASX earnings, tech in focus. Scott Phillips on Nine’s Late News
• Meta’s metaverse losses pour cold water on these 3 cryptocurrencies

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

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

from The Motley Fool Australia https://ift.tt/l5SNFuO

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

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

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

Tabcorp share price in the green on half-year results

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

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

What else happened in the half?

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

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

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

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

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

Management commentary

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

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

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

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

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

What’s next

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

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

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

Tabcorp share price summary

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

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

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

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

More reading

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

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

from The Motley Fool Australia https://ift.tt/DvUsc95

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

Whitehaven share price softens despite record profitability

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

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

What else happened this half for Whitehaven?

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

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

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

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

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

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

Management commentary

Speaking on the announcement, Whitehaven CEO Paul Flynn said:

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

What’s next for Whitehaven?

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

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

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

Whitehaven share price snapshot

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

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

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

More reading

• Are ASX mining shares the place to be right now?
• 3 ASX 200 shares tipped to shine bright in 2022
• Why are ASX 200 energy shares tumbling on Tuesday?
• Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today
• Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’

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

from The Motley Fool Australia https://ift.tt/IZPOcEl

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

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

Data#3 share price advances on half-year result

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

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

What happened in FY22 for Data#3?

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

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

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

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

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

What did management say?

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

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

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

What’s the outlook for Data#3?

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

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

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

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

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

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

More reading

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

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

from The Motley Fool Australia https://ift.tt/sVrmCPG

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

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

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

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

What happened in FY 2021?

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

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

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

Management commentary

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

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

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

Outlook

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

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

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

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• These are some of the top performing ASX 200 value shares of the past year
• Here’s why the Woodside (ASX:WPL) share price just cracked a new 52-week high

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

from The Motley Fool Australia https://ift.tt/O5NiGjW