The Bigtincan Holdings Ltd (ASX: BTH) share price is soaring after the company returned to trading today following its completed Placement and Institutional Entitlement Offer.

At the time of writing, the software company’s shares are fetching $1.44, up a sizeable 20.5%.

Bigtincan share price resumes

It’s been a strong day for the Bigtincan share price, with investors buying up amid the company’s successful equity raise.

In a statement to the ASX, Bigtincan advised it has raised gross proceeds of approximately $79.4 million. This consists of a placement to United Stated-based investment firm SQN investors and an accelerated institutional component.

The placement saw 20 million shares issued to SQN investors at a price of $1.05 per share, raising $21 million. This was completed Tuesday 24 August.

On the other hand, the institutional component is set to raise roughly $58.4 million at the same price. This comprises a 1 for 4 underwritten accelerated pro-rata non-renounceable entitlement offer. In turn, the company will issue around 55.6 million new ordinary shares.

A retail entitlement component is also expected to be raised, allowing everyday shareholders to take part in the offer. It’s projected approximately a further $56 million (before costs) will be added to Bigtincan’s equity raise.

In total, all 3 components will bring a value of $135.4 million should the retail offer move forward.

The proceeds will go towards funding the acquisition of United States-based Brainshark, Inc. for US$86 million (A$118.7 million). Bigtincan regards Brainshark as a strong fit for its growing portfolio.

About the Bigtincan share price

Over the past 12 months, Bigtincan shares have moved in circles with sharp share price movements. The company’s share price is up 65% since this time last year, with 31% gains year to date.

Bigtincan presides a market capitalisation of about $631 million, with more than 435 million shares on its books.

The post Bigtincan (ASX:BTH) share price rockets 20% with capital raising update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. 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 Worley Ltd (ASX: WOR) share price is tumbling after the company released its full-year results for FY21.

At the time of writing, shares in the energy and chemicals engineering company are trading for $10.97 – down 3.35%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.22% higher.

Let’s take a closer look at today’s announcement.

Worley share price slumps with 27% plunge in revenue

• Revenue of $9.5 billion, down 27% on the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation and amortisation (EBITA) fell 35% on the pcp to $324 million
• NPAT of $86 million, a fall of 50% on the pcp
• Basic earnings per share (EPS) of 16.5 cents – down 50%
• A full-year dividend of 50 cents per share (25 cent final + 25 cent interim), unfranked. This is the same as the prior dividend payout but represents a yield of 4.5% on the current share price.

What happened to Worley in FY21?

As with most other companies, COVID played a disproportionate impact on the Worley share price.

CEO Chris Ashton conceded as much in remarks today:

FY2021 has been a year of dynamic global change. Our business has felt the impact of the global economic circumstances, including COVID-19 as global activity slowed and project sanctioning was deferred. Through this year, we’ve acted with agility to accelerate our strategic transformation and position our business for future success. These efforts contributed to an improved result in the second half in line with our expectations.

The second half of the year was better for the company financially than the first half of FY21.

What else did management say?

Ashton also said the following:

With reduced revenues, we’ve managed the elements of our business within our control. Our underlying operating cash flow of $621 million further strengthened our balance sheet with net debt reducing by 13% to $1,556 million and similar to H1 FY2021 is at the lowest levels since the ECR acquisition. Leverage (defined as net debt to EBITDA) has increased to 2.0x and gearing is well below the target range of 25-35% at 21.7%. We aligned our financing with our purpose, delivering a more sustainable world, and successfully issued Australia’s first sustainability-linked bond with a €500 million issuance under a Euro Medium Term Note program.

What’s next for Worley?

Looking forward, Worley says there are “positive indicators” for FY22, and it expects momentum from H2 FY21 to continue into the new financial year. It attributes this to an “increasing backlog and factored sales pipeline.”

Its push into sustainability should produce positive financial results for the company, according to the statement. Let’s see what this means for the Worley share price going forward.

Worley share price snapshot

Over the past 12 months, the Worley share price has increased 20.42%. Year to date, however, it is down 4.53%.

Worley has a market capitalisation of $5.9 billion.

The post Worley (ASX:WOR) share price drops with 50% fall in profits appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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 Adbri Ltd (ASX: ABC) share price is falling in intraday trade, down 4% to $3.50 per share.

This follows on the release of the ASX construction materials company’s financial results for the half year through to 30 June (1H21).

Adbri share price slips on half year results

• Underlying net profit after tax (NPAT) of $55 million, an increase of 15.5% on 1H20
• Revenue increased 7.4% from the prior corresponding period (pcp) to $752.3 million
• Underlying earnings before interest, taxes and depreciation (EBITDA) margins improved from 17.5% to 17.7%
• Declared an interim dividend of 5.5 cents per share (cps), fully franked, up from 4.75 cps in 1H20

What happened during the reporting period for Adbri?

The company credited its revenue lift on improved conditions during the half year, particularly in Queensland and New South Wales. It said “robust demand” for construction materials saw increased volumes across all its products.

Adbri secured 3-year contracts to supply lime to ASX mining giant Northern Star Resources Ltd (ASX: NST) and US-listed Newmont Corporation (NYSE: NEM). The company also reached an agreement with Alcoa Corp (NYSE: AA) to supply lime to their Wagerup facility until the end of September, with the potential to continue supply through the end of January 2022.

Adbri reported its Mawsons joint venture (JV) has agreed to acquire the Milbrae concrete, aggregates and crushing business. This will add 7 concrete plants and 13 quarries in regional New South Wales, subject to completion.

It reported that the sale process for its Hilltop land site in Geelong, Victoria has commenced. The company expects this to be complete in late 2021 or early 2022.

A long-term gas deal with Senex was also secured (post reporting period), which Adbri said will lock in an “important portion” of its gas requirements in South Australia until 2029.

Joining a growing list of companies addressing climate change, Adbri announced its goal of net zero carbon emissions by 2050.

What did management say?

Commenting on the results, Adbri’s CEO Nick Miller said:

Adbri delivered a robust first half financial performance for 2021 recording solid growth in revenue and profits with improving margins as demand for construction materials rebounded, supported by increased residential housing activity and infrastructure spending.

We have made strong progress in executing on our strategic priorities and investment initiatives, while continuing to maintain a disciplined focus on managing our cost base.

What’s next for Adbri?

Looking ahead, the company expects surplus land sales, including the Geelong Hilltop land, to deliver $20­–$30 million over the next 2 years. It also expects to see roughly $100 million in cost savings over the next 5 years, in part driven by low-cost energy contracts.

The second half of 2021 will see an increase in capital expenditure, with more investment in Adbri’s Kwinana and Accolade projects. It forecast full year capex of approximately $200 million.

Miller said that, “earnings in the second half will be impacted by a reduction in lime volumes to Alcoa, the anticipated commencement of a competing cement import terminal in NSW and COVID-19 impacts”.

These include rolling restriction on construction activity and the increased cost due to the delayed return of the Accolade from its drydock in Singapore.

Milled added that Adbri remains “well positioned to benefit from increasing construction activity as a result of ongoing government stimulus”.

The Adbri share price is up 48% over the past 12 months.

The post Adbri (ASX:ABC) share price slips on half year 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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The AGL Energy Limited (ASX: AGL) share price is seeing some green shoots today. At the time of writing, AGL shares are trading at $6.91, down a nasty 3.76% for the day.

However, zoom out and the picture gets a lot bleaker the further you go. Since last Wednesday, AGL shares have lost around 6.3% of their value, seeing as the company was trading at $7.35 a share a week ago.

Year to date, AGL is now down by 43.23%. Over the past 12 months, these losses climb to 55.73%. And over the past 5 years, shareholders have had to watch AGL shares lose more than 63% of their value. In fact, since AGL’s last share price peak back in 2017, this company is now down more than 75%. Ouch.

To find the last time AGL shares have seen the levels we are at today, you’d have to go back to 2003.

But let’s focus on the past week. So what has sent AGL to new multi-decade lows in the past 5 trading days?

AGL shares drop from dividend, earnings report

Well, it’s not as bad as investors might fear. AGL shares are down today because the company has just gone ex-dividend for its upcoming shareholder payout. In its FY21 earnings report that AGL released on 12 August, AGL announced a final dividend of 34 cents per share, to be paid out on 29 September.

The ex-dividend date for this payment is… today. Thus, the value of this dividend has been taken out of the current AGL share price by the markets. That’s because any new AGL investors from today won’t be eligible for this dividend. 

On yesterday’s closing share price of $7.16, this dividend was worth a yield of 4.75% just on its own. That’s partly why we have seen such a steep fall in AGL shares over the past week.

But we must also look at the impact of AGL’s FY21 earnings report, which AGL delivered to investors just over a fortnight ago. After all, AGL shares have fallen around 10% since the time this report was released.

So, as we covered at the time, AGL reported revenue losses of 10%. As well as a 33.5% drop in underlying profits and a 31.6% fall in earnings per share (EPS). It also trimmed its dividend policy to help fund its upcoming demerger. This demerger, which will see AGL’s generation and retail businesses separate, is expected to be completed by the fourth quarter of FY2022.

So it’s likely that a combination of AGL’s poorly received earnings report, together with the company going ex-dividend today, is responsible for AGL shares’ recent run of bad fortune.

At the current AGL share price, the company has a market capitalisation of $4.3 billion and a trailing dividend yield of 9.45%.

The post Here’s why the AGL (ASX:AGL) share price is down 6% in a week appeared first on The Motley Fool Australia.

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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 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. The benchmark index is currently up 0.3% to 7,524.1 points.

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

Afterpay results

The Afterpay Ltd (ASX: APT) share price is largely flat on Wednesday after the release of its full year results. The soon to be acquired buy now pay later provider reported a 90% increase in underlying sales to $21.1 billion and a 78% jump in total income to $924.7 million. This was driven by increased repeat use and a 63% increase in active customers to 16.2 million. Management advised that the Square-Afterpay transaction is on track to complete in the first quarter of calendar year 2022.

WiseTech Global share price rockets after smashing guidance

The WiseTech Global Ltd (ASX: WTC) share price is rocketing higher today after smashing its earnings guidance in FY 2021. The logistics solutions platform provider was targeting full year revenue of $470 million to $510 million and EBITDA of $165 million to $190 million. This morning it reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. Looking ahead, management is guiding to EBITDA growth of 26% to 38% in FY 2022.

Zip shares lower on results

The Zip Co Ltd (ASX: Z1P) share price is trading lower on Wednesday following the release of its full year results. For the 12 months ended 30 June, the buy now pay later provider reported a 150% increase in revenue to $403.2 million. This was driven by a 178.5% jump in transaction volume to $5.8 billion, which was underpinned by a 247.5% increase in customer numbers to 7.3 million. The company also revealed that so far in FY 2022 total transaction value was up 58% in Australia and 240% in the United States.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday by some distance has been the WiseTech share price with a 27% gain. This follows its stronger than expected full year results. The worst performer has been the Reece Ltd (ASX: REH) share price with a 9% decline. The plumbing parts company released its full year results after the market close on Tuesday.

The post ASX 200 midday update: WiseTech rockets, Afterpay & Zip report appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and WiseTech Global. 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 MyDeal.com.au Ltd (ASX: MYD) share price is falling after the company released its financial year 2021 (FY21) earnings.

Right now, the MyDeal share price is 79.5 cents, 5.36% lower than its previous closing price.

MyDeal.com.au share price slumps on 1,700% drop in profit

Here’s how the online retail store performed during FY21:

• $38.2 million of revenue – 144% more than that of FY20
• Loss of $5.8 million after tax ­– a 1,700% drop from FY20’s $331,632 profit
• Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of $4 million
• Net cash flow from operations was an outflow of $3.9 million
• No dividend

While the company’s FY21 results were pretty lacklustre, it wasn’t all bad for MyDeal.com.au.

The company reported record gross sales of $218.1 million. It also reported its net transaction value was $204.6 million, up from $94.0 million in FY20. Additionally, its FY21 gross profit was $33.3 million, 119% more than that of FY20.

Mydeal stated its EBITDA loss was mainly driven by its increased spending on advertising and promotional activity, which is expected to support its goal of increasing customer acquisitions and investment into its private label business.

It invested $4.9 million into its private label’s inventory in FY21. The private label contributed $8.8 million to the company’s gross sales.

Before its private label inventory investment, MyDeal’s operating cash flow was $1 million.

The company ended the period with $42.7 million cash and no borrowings.

What happened in FY21 for MyDeal.com.au?

FY21 was a big year for MyDeal and its share price with a corporate restructure in September and the company’s debut on the ASX in October.

MyDeal raised $40 million through its initial public offering (IPO).

The company reported that the number of active customers increased 83% year-on-year over FY21. It ended the period with 894,225 active customers.

Repeat business also grew, with 59.4% of transactions in the fourth quarter coming from returning customers.

Customers now shop with MyDeal an average of 1.7 times per year, up from 1.5 times in FY20.

Finally, the MyDeal app represented around 10% of the company’s sales over FY21. It launched in May 2021.

What did management say?

Commenting on the results, MyDeal.com.au founder & CEO Sean Senvirtne said:

FY21 represents a significant moment in MyDeal’s history, a record 10 years in the making and just the beginning of what’s to come… We have put ourselves in the perfect position to capture the increased demand in the market.

Now with over 1,100 active sellers, 6+ million products and a private label business on a steep incline, we continue to entrench ourselves as one of Australia’s prominent online retail marketplaces for home and lifestyle products.

Senvirtne said MyDeal continued to scale by leveraging its proprietary technology across sellers, products and sales and “continuously refining the user experience”.

We invest in efficient customer acquisition and retention strategies to accelerate active customer growth, while attracting marketplace sellers and investing in our private label offering to expand our range of products across in-demand categories.

Promoting and further optimising the app will remain a key feature of our strategy going forward.

What’s next for MyDeal.com.au?

Here’s what might drive the MyDeal share price in FY22:

While MyDeal didn’t provide guidance for FY22, the company pledged to provide regular business updates.

It stated FY22 was off to a good start and noted its soon-to-launch multi-channel brand and advertising campaigns.

MyDeal said it would keep focusing on customer acquisition and its private label business in FY22.

MyDeal share price snapshot

The MyDeal share price has slipped 54% since its first close on the ASX. It is also currently 20.5% lower than its prospectus’ offer price of $1 per share.

The post Mydeal.com.au (ASX:MYD) share price slides 5% on $5.8 million loss 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 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 Lovisa Holdings Ltd (ASX: LOV) share price is leaping higher today, up 18.19% at the time of writing to $19.40 per share.

This comes following the release of the ASX jewellery retailer’s financial results for the year ending 30 June (FY21).

Lovisa share price leaps on FY21 profit results

• Revenue of $288 million, up 18.9% from FY20
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 34.6% year on year to $60.2 million
• Net profit after tax (NPAT) of $27.7 million, up 43.3% from the $19.3 million reported in FY20
• Net cash of $35.6 million, up from $20.4 million in FY20
• Declared a final dividend of 18 cents per share (cps); no final dividend was paid in FY20

What happened during the reporting period for Lovisa?

Like most ASX retailers, Lovisa reports that it was “heavily impacted” in the first quarter of the financial year by COVID-19 restrictions. It pointed to store closures in Victoria and weakness in most of its global markets as hampering operations in Q1.

Things turned around in the second quarter with Lovisa’s Victorian stores reopening and “most other markets showing improved performance.” This led to positive comparable store sales through the second quarter. However, more closures later in the year, particularly in the United Kingdom, continued to impact operations.

COVID also slowed sales in its Asian markets, with tourism numbers way down. And it added to costs, with “significantly higher freight costs due to COVID surcharges on freight rates.”

The company’s beeline acquisition (of a European retail store network) in November aided its cash flow position. It benefitted from the receipt of 11.8 million euro cash as part of the acquisition.

During the financial year, Lovisa opened 22 stores in its existing markets and 87 stores in Europe as part of its beeline acquisition. That brings the total number of stores to 544.

The final dividend lifts the full-year dividend payout to 38 cps.

What did management say?

Lovisa managing director Shane Fallscheer commented on the results:

We are pleased with the performance of the business for the year, in particular with the sales performance we saw across most markets since the end of Q1FY21 with solid trading despite the continued global challenges we face with the impact of COVID.

The strength of our balance sheet and the current global footprint puts us in a great position to take advantage of future opportunities as they arise.

What’s next for the Lovisa share price?

Lovisa said it will continue to focus on expanding its physical and digital store networks.

With the resurgent pandemic, it cautions that “logistics capacity challenges” will hinder bricks and mortar store openings.

Management did not provide guidance on future dividend levels. It said “profitability, cash flows, and future growth capex requirements” will determine this. The company said that due to the uncertain outlook for the global economy, it could not provide further guidance.

The Lovisa share price is up 150% over the past 12 months.

The post Lovisa (ASX:LOV) share price leaps 18% higher on FY21 profit boost 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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The SkyCity Entertainment Group Limited (ASX: SKC) share price is on the rise in lunchtime trade on Wednesday.

This follows the gaming and entertainment company releasing its FY21 annual report. At the time of writing, SkyCity shares are up 3.34% to $3.09.

SkyCity share price gains despite earnings hit

Here are the highlights from the Group’s results:

• Revenue down 15.4% to $951.9 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 8.9% to $317.3 million
• Reported net profit after tax dropped 33.7% to $156.1 million from FY20
• Earnings per share (EPS) down 41.7% to 20.6 cents per share
• FY21 dividend of 7 cents per share, down from 10 cents per share in FY20

What happened in FY21 for SkyCity

The SkyCity share price is moving higher on Wednesday after releasing its annual report. Fair warning to any investors planning to peruse its document, it is spread across two parts with a total of 291 pages. As such, it is probably fair to say it is not exactly ‘light reading’.

The report shows it was certainly a challenging financial year for the company. Throughout FY2021, SkyCity suffered impacts from restrictions due to the pandemic.

This resulted in the temporary closure of SkyCity Auckland and SkyCity Adelaide. However, conditions improved enough for the company to declare a final dividend payment after having suspended its dividends from FY20.

According to the release, SkyCity pulled in $951.9 million in revenue during the year — representing a 15.4% reduction from FY20.

It appears investors had braced for poorer performance during the period, with the SkyCity share price rising today.

The extent of impacts from closures and the New Zealand International Convention Centre fire are demonstrated by the company’s normalised results.

For example, on a normalised basis, SkyCity reported a 36.3% increase to its earnings after adjustments. This compares to a 33.7% fall in earnings without accounting for adjustments.

Furthermore, the board advised it intends to progressively increase dividends over time as earnings grow.

What did management say?

Commenting on the result, the Chair and CEO, Rob Campbell and Michael Ahearne, said:

Despite the ongoing disruption and volatility, SkyCity has maintained a strong financial position over the period, delivered credible operating performance when open and protected the health and wellbeing of our people.

Critically, the SkyCity Board and management team recognise the importance of protecting our casino licences and enhancing our social licence to operate. Moreover, maintaining a strong balance sheet, meeting the interests of all stakeholders and keeping a disciplined allocation of capital to provide appropriate risk-adjusted returns to shareholders over the long term remain key priorities.

Additionally, regarding the company’s outlook, management said:

In terms of outlook for FY22, given the current unpredictable operating environment and uncertain near-term outlook due to COVID-19, SkyCity is unable to provide detailed earnings guidance at this time, but this will remain under regular review. Our performance over the next year will be underpinned by the ongoing recovery of local gaming, optimising SkyCity Adelaide post-expansion and robust cost control across all activities

What’s next for SkyCity?

As stated by management, SkyCity has not provided guidance for the year ahead due to the pandemic. However, the results discussed the outlook more broadly.

The New Zealand gaming businesses are expected to perform well once there are no restrictions. Meanwhile, businesses with exposure to tourism are expected to experience an ongoing impact.

Furthermore, SkyCity committed to a 60% to 90% payout policy for dividends.

SkyCity share price snapshot

Despite the challenging environment, the SkyCity share price has performed strongly in the past year. At the time of writing, shares have gained 33% over the past 12 months. For context, the S&P/ASX 200 Index (ASX: XJO) gained 22%.

As a result of its solid share price performance, SkyCity now holds a market capitalisation of $2.34 billion.

The post SkyCity (ASX:SKC) share price climbs despite 33% FY21 profit drop appeared first on The Motley Fool Australia.

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

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The AMP Ltd (ASX: AMP) share price has continued to head south over the past 12 months. This comes as the financial services company came under pressure over a series of negative updates.

At the time of writing, AMP shares are fetching for $1.105, up 1.84%. It’s worth noting that the company’s share price is nearing its all-time low of $1.04 reached on 30 July.

What’s happened to AMP recently?

2021 has been a time to forget for AMP shareholders, watching their wealth dwindle to record lows. The company’s share price has been hit heavily, despite the company reporting a rebound in its full-year results this month.

AMP achieved a Net Profit After Tax (NPAT) of $181 million, up 57% on the prior corresponding period. This was largely driven by an increase in Australian wealth management assets under management (AUM) of $121 billion, up 8%.

However, in a positive light, Australian wealth management net cash outflows hit $2.7 billion. A massive improvement compared to the $4 billion in net cash outflows registered in H1 FY20.

Nonetheless, the AMP share price has been trading at near basement prices since ASIC commenced proceedings against the company in May.

According to ASIC, AMP wilfully deducted life insurance premium and advise service fees from superannuation accounts of deceased customers.

The company stated that action has since been taken to correct the error. It has been conducting a thorough review of its policies and processes. The matter was later covered in the financial services royal commission.

How does the AMP share price compare to the ASX 200?

Over the last 12 months, the AMP share price has fallen more than 25%, with year-to-date also down around 30%. The company’s shares have lost about 80% of its wealth since early 2018, reflecting negative investor sentiment.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 22% from this time last year and is up 14% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

Undoubtedly, AMP shares and the ASX 200 have moved in completely opposite directions.

Based on today’s price, AMP presides a market capitalisation of roughly $3.5 billion, with approximately 3.2 billion shares on issue.

The post Why the AMP (ASX:AMP) share price has significantly underperformed the ASX 200 in the last year appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Macquarie Telecom Group Ltd (ASX: MAQ) share price has opened lower on Wednesday after the company released its FY21 full-year results.

Macquarie Telecom share price lower despite continued track record of growth

Macquarie Telecom was pleased to announce its seventh consecutive year of EBITDA growth and in line with guidance. Key highlights for FY21 include:

• Revenue increased 7.1% to $266.2 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 13% to $73.8 million
• Net profit after tax (NPAT) decrease 7.4% to $12.5 million
• Capital expenditure of $139.1 million (FY20: $64.1 million)

What happened to Macquarie Telecom in FY21?

The Macquarie Telecom share price has surged 40% since mid-July. This major rerate came about on 14 July, when the company announced plans to build a new data centre at Macquarie Park Data Centre Campus.

The company said that the new data centre will be called “IC3 Super West” and will be the largest data centre on the campus.

IC3 Super West will add 32MW of IT load to bring the total campus IT Load to 50MW over time. It is designed to seamlessly interconnect with its IC3 East asset.

According to today’s results, the company’s state significant development application is expected to shorten the planning cycle, likely to run until early 2022.

Macquarie Telecom said that construction and funding remain subject to final board approvals.

In terms of financial performance, Macquarie Telecom delivered a 7.1% increase in revenue, underpinned by strong growth in cloud services & government and data centre divisions.

The company’s 7.4% decline in NPAT reflects the increase in depreciation and amortisation as a result of increased levels of capital expenditure in FY20 and FY21.

Management commentary

Macquarie Telecom chief executive David Tudehope commented on the company’s strong track record of growth, saying:

The 2021 full year results delivered the seventh consecutive year of EBITDA growth underpinned by our strategy of investing in Data Centres, Cloud & Cyber Security, including the recent announcement of our new IC3 Super West development, which will provide significant customer growth opportunities in the future.

In addition, Tudehope said that the company will increase investments in cyber security to meet rising demand.

We have decided to increase our investments in Cyber Security, people and technology, to benefit from the increasing demand for business and government to uplift their security defences.

What’s next for Macquarie Telecom?

Looking ahead, Macquarie Telecom expects EBITDA to continue to grow in FY22, underpinned by investments made in data centres as well as cloud services and government.

The company said it will continue to develop public cloud capability to enhance its current hybrid cloud offering.

This is in addition to “making significant investments in FY22” to realise the strong demand for cyber security in its government and cloud services business.

Macquarie Telecom share price snapshot

At the time of writing, the Macquarie Telecom share price is down 1.53%, trading at $74.85 a share. However, it’s enjoyed a good run so far in 2021, increasing 43% year to date and up almost 63% over the last 12 months.

The company has a market capitalisation of $1.6 billion.

The post Macquarie Telecom (ASX:MAQ) share price lower on seventh year of EBITDA growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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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