The Greenland Minerals Ltd (ASX: GGG) share price is falling again today after the latest news of the company’s dealings with Greenland’s new government. The winning party of Greenland’s recent snap election is determined to stop developments at the miner’s Kvanefjeld Project.

At the time of writing, the Greenland Minerals share price is down 15.24% trading at 8.9 cents.

Let’s take a closer look at today’s news from the rare earth miner.

New coalition formed; Greenland Minerals future still unknown

Today’s news comes in an update from the company on its battle to keep progressing the development of its Kvanefjeld Project.

The company says there are reports that a coalition government, made of Greenland’s Inuit Ataqatigiit and Naleraq parties, has been created in the wake of the nation’s election on 6 April.

The miner states it will begin discussions with the Government – whose leadership has declared its intention to stop the development of the Kvanefjeld Project.  

The BBC reported the snap election was initiated after a huge public backlash of the project caused a collapse of the previous government. 

The former government had supported the development, saying it would generate hundreds of millions of dollars annually for the country. Thus, allowing Greenland greater independence from Denmark, of which Greenland is an autonomous territory.

Always a wrangle

Greenland Minerals has been operating in the nation since 2007, when it first acquired the mine site.

Since then, the company has applied for an exploration licence, which it’s still yet to receive.  

A multi-year investigation concluded in December 2020, when the former government approved the company’s environmental and social impact assessments.

Greenland Minerals was then to begin a process of public consultation, which quickly became its undoing. The public consultation was originally scheduled for completion by June 2021.

Now, the future of the project is in the hands of a government seemingly determined to put it to bed.

Greenland Minerals share price snapshot

The Greenland Minerals share price has been plunging on the ASX lately, with the latest news adding to its collapse.

Currently, the Greenland Minerals share price is down 51% over the last 30 days.

It’s also down by 68% year to date and 12% over the last 12 months.

The company now has a market capitalisation of around $140 million, with approximately 1.3 billion shares outstanding.

More reading

• ASX stock of the day: The Greenland Minerals (ASX:GGG) share price is up 18% today
• Why the Greenland Minerals (ASX:GGG) share price is rocketing 17% today
• Why Aurelia Metals, Brickworks, Greenland Minerals, & Resolute are tumbling lower
• Why the Greenland Minerals (ASX:GGG) share price is crashing 45% lower today

Motley Fool contributor Brooke Cooper 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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Actinogen Medical Ltd (ASX: ACW) shares are tumbling today after the company released its quarterly activity report and strategic update this morning. At the time of writing, the Actinogen share price is sliding a whopping 17.24% to 4.8 cents. 

Actinogen is a biotechnology company that develops drugs for Alzheimer’s disease and the cognitive decline associated with other neurological and metabolic diseases. Geographically, it operates in and derives revenue from Australia.

The company’s main product is called Xanamem. Xanamem is a brain-penetrant, small-molecule enzyme inhibitor that works to inhibit excess cortisol production inside brain cells.

What Actinogen’s quarterly report stated

Actinogen shares have fallen off a cliff today following the release of the company’s latest updates. Actinogen advised that it continues to focus on the development of its lead drug, Xanamem, as a treatment for multiple indications. According to the company, it is leveraging the positive phase I XanaHES results, in which a significant improvement in multiple cognition domains was achieved in healthy older volunteers.

Now the company is seeking to progress its Xanamem treatments into an Alzheimer’s population with a phase II XanaMIA trial planned to target patients with mild cognitive impairment due to Alzheimer’s Disease.

In its update, the company advised that whilst it has “data supporting [the] efficacy of Xanamem in doses as low as 5mg” part of the phase II study’s purpose will be “seeking to confirm [the] minimum effective Xanamem dose”.

The company’s uncertainty surrounding the drug’s dosage could be a potential reason investors are driving down the Actinogen share price today. Actinogen has advised it will hold a shareholder teleconference on 23 April during which it will provide an update on the company’s “dose ranging study seeking to confirm minimum effective Xanamem dose”.

In parallel, Actinogen remains focused on progressing study planning for anxiety, sleep and behavioural problems in Fragile X syndrome (FXS). These symptoms have a substantial impact on day-to-day functioning of patients and their carers and there are currently no approved treatment options that specifically target these symptoms associated with FXS.

Actinogen says it is “well advanced” with the planning for its Phase II XanaFX, with the trial expected to commence in the second half of this year.

During the quarter, Xanamem was also awarded a Rare Paediatric Disease Designation (RPDD) for Xanamem in the treatment of FXS in patients under the age of 18. The RPDD program is designed to incentivise the development of drugs for rare childhood illnesses, such as FXS, with potential clinical, development and commercial benefits.

Management comments

Actinogen CEO and MD Steven Gourlay was upbeat about the company’s ability to deliver future shareholder value, saying: 

After many years of working in the biopharma industry, I am excited by the huge potential of Actinogen. In my last major role at Principia Biopharma as Chief Medical Officer, I steered two small molecules from a microcap company valuation, through successful Phase II development and into Phase III, resulting in a significant value appreciation for shareholders when the company was acquired for US$3.7B.

I find Actinogen to be a similar investment opportunity: excellent science, a promising Phase II molecule for multiple indications, with an attractive valuation, and so accepted the role as CEO / MD, and personally invested over A$300K into the Company prior to my appointment. We are now planning for multiple shots on goal and strongly believe the upcoming trials are designed to achieve informative and positive outcomes. I look forward to working with the team to further develop Xanamem as we progress the development pipeline.

Actinogen share price snapshot

Following today’s releases, the Actinogen share price is falling against its 52-week high of 6.2 cents set on Monday this week. Actinogen shares are up from just over two cents per share at the beginning of March. The company has a current market capitalisation of around $96 million.

More reading

• Actinogen (ASX:ACW) share price surges 23% today, 165% this year

Motley Fool contributor Lucas Radbourne-Pugh 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 Ardent Leisure Group Ltd (ASX: ALG) share price is above the clouds today. At the time of writing, the tourism operator’s shares are swapping hands for 99 cents each, up 7%. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 1.5% lower.

Today’s price movement comes as the company updated the market on its recent financial performance and announced the immediate departure of one of its senior executives.

Let’s take a closer look at today’s announcements and what they might mean for the Ardent share price.

Performance update

Main Event

In the first part of its first statement, the company gave a mixed assessment of the financial operations of its various businesses.

In the update for subsidiary Main Event, a US-based family entertainment company with 44 locations, the figures compare the reopened centres only (34 of 44) to their previous performances.

Revenue was down 18.8% in January compared to the previous year. While negative, the rate is lower than compared to the latter half of 2020.  In February, revenue was down 21.5%. The company attributed this increasing rate to the winter storms which devasted the US, and particularly Texas.

Without the impact of the storms, Ardent says revenue would only be down 15.8% compared to FY19.

In March 2021, centre revenue was up 23% compared to March 2019. It is compared to 2019 and not 2020 because all centres were shut due to the COVID-19 pandemic. The company said it achieved its best sales week ever during the month, despite 2 centres still closed.

During the first 19 days of April, revenue was up 44% compared to 24 months prior.

Ardent says Main Event’s strong performance in the last couple of months was because of speedy vaccine rollout in the United States, direct stimulus payments to consumers, and lowering COVID infection rates.

Main Event president and CEO Chris Morris said:

Current trading conditions should not be taken as a guide to future performance.

We are unable to predict the length and extent of the strong constant centre revenue growth since March, however, we are optimistic that consumer demand will remain robust as long as the United States does not suffer any setbacks in case counts or vaccine efficacy.

Theme Parks

Ardent gave a pessimistic outlook on its theme park operations. The company’s best-known theme parks are Dreamworld, Movie World, and WhiteWater World on the Gold Coast. 

Trading during the second half of the financial year was impacted by the Brisbane lockdowns and “adverse weather events”. Both occurred during the first week of the school holidays, a peak time for the company.

Attendance numbers were steady compared to the previous year. However, the company expects its earnings before interest, tax, depreciation and amortisation (EBITDA) to be down due to the end of the JobKeeper subsidy.

Theme Parks CEO John Osborne said the company expected conditions to remain challenging for the remainder of FY21 and the first half of FY22.

We are optimistic about trading in the second half of FY22, driven by the expected opening of Steel Taipan and pent-up local and interstate demand though this is largely contingent on the Australian vaccine rollout, no COVID-19 outbreaks and resultant domestic border confidence.

CEO departs

The company also announced Mr Osborne would be leaving his role, effective immediately, for personal reasons. Theme Parks’ previous chief operating officer Greg Young will replace him.

Mr Osborne will continue to consult Mr Young on several projects.

Ardent share price snapshot

Over the past year, the Ardent share price has increased 249.1%. The company hit its 52-week record at the beginning of March 2021 and is only just under it now. However, Ardent shares are still 33.5% lower than the beginning of February 2020, just before the pandemic.

Ardent Leisure has a market capitalisation of $441.3 million.

More reading

• The ASX shares brokers think you should be watching
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Motley Fool contributor Marc Sidarous 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $149.00 price target on this payments company’s shares. Morgan Stanley was pleased with Afterpay’s third quarter update, which revealed sales ahead of its expectations. The broker also notes that the company’s platform is generating creating value for merchants through significant lead referrals via the Afterpay platform. The Afterpay share price is trading at $121.98 this afternoon.

Temple & Webster Group Ltd (ASX: TPW)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on this online furniture and homewares retailer’s shares to $15.00. This follows the release of Temple & Webster’s third quarter update this week. While the broker has lowered its earnings forecasts materially to account for management’s plan to invest heavily for growth, it appears to be a fan of the strategy and expects it to cement its leadership position. The Temple & Webster share price is fetching $9.99 today.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating and lifted their price target on this banking giant’s shares to $28.50. According to the note, the broker believes that Westpac has the biggest cost reduction potential in the sector. This should be supportive of earnings and dividend growth in the coming years. As a result of this, Citi has named Westpac as its top pick among the big four banks. The Westpac share price is trading at $24.70 on Wednesday afternoon.

More reading

• Westpac, ANZ, CBA share prices dip after class action for ‘junk’ insurance
• ANZ Bank’s (ASX:ANZ) profit result could get an extra boost: Macquarie
• Leading brokers give their verdict on the Afterpay (ASX:APT) share price
• Got money to invest? Here are 2 ASX shares to buy
• Latitude (ASX:LFS) makes a splash on its ASX debut

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price has the wobbles today after the company shared news of a successful trial.  

The biopharmaceutical company announced that its kidney cancer imaging product’s Japanese clinical study met all objectives for its first phase.

The Telix share price plummeted from its opening price of $3.96 to an intraday low of $3.87, before gaining – and losing – ground through the morning trade. At the time of writing, Telix shares are down 0.51%, trading at $3.89.

Let’s take a closer look at the news driving the Telix share price today.

Successful study

Today, Telix shared news that its clinical study, Zirconium Dosing and Comparison in Japan (ZIRDAC-JP), has proven successful. The study met its objectives of positively measuring the safety, tolerability, required radiation dosage, and movement within the body of its TLX250-CDx.

TLX250-CDx is an imaging radiopharmaceutical for the imaging of clear cell renal cell carcinoma (ccRCC), the most aggressive form of kidney cancer. ccRCC makes up 70% to 85% of all kidney cancers. According to Telix, TLX250-CDx targets a cell-surface antigen called Carbonic Anhydrase IX.

The company states that many patients are diagnosed with a renal mass, and TLX250-CDx is able to determine whether they are cancerous in a non-invasive inspection.

Phase 1 of the study was completed at Yokohama City University Hospital. There, six patients with an unspecified renal mass underwent dosing with TLX250-CDx, followed by positron emission tomography imaging.

All 6 patients completed the study with no adverse events. The whole-body and organ-specific radiation dosage needed for TLX250-CDx showed no difference between Japanese and Caucasian patients.

Commentary from management

Telix chief medical officer Dr Colin Hayward said the company was encouraged by the study’s results:

We now plan to consult with the Japanese regulator to confirm the design of the next stage of development for TLX250-CDx, with the objective of bridging to Telix’s international Phase III ZIRCON study, currently enrolling patients at 36 sites globally.

Telix pharmaceuticals share price snapshot 

If investors embrace today’s news, the Telix share price may break into the ASX 2021 green.

Currrently, the Telix share price is down 2.9% year to date, although it’s up a whopping 238% over the last 12 months.

The company has a market capitalisation of around $1 billion, with approximately 281 million shares outstanding.

More reading

• Top brokers name 3 ASX small cap shares to buy
• Why the Telix (ASX:TLX) share price is storming 5% higher

Motley Fool contributor Brooke Cooper 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 Fortescue Metals Group Ltd (ASX: FMG) share price is falling today after its chair, Andrew ‘Twiggy’ Forrest, lambasted the fossil fuels industry in an interview with ABC program, 7:30. 

At the time of writing, the Fortescue share price is down 3.19% to $20.91 per share. 

Fortescue is one of the world’s biggest polluters. According to the report, emitting two million tonnes of carbon per year. It’s a giant Australian iron ore production and exploration company, with assets located in the Pilbara region of Western Australia.

It’s the fourth largest iron ore producer in the world. Coming in behind BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Vale. However, unlike its competitors, Fortescue is aiming to be carbon neutral by 2030. 

Twiggy’s view on fossil fuels

Australia’s largest iron-ore producer, BHP, is aiming for carbon neutrality by 2050. Moreover, the Australian government is aiming to “preferably” be carbon neutral by 2050.

Forrest is hoping his company’s comparatively radical shift towards net-zero emissions can attract investors and good publicity. In addition, Forrest is aiming to future-proof Fortescue for the long term.

“Fortescue has decided to step up and take that first-mover risk. I believe it’s going to work, and we’ll keep on persevering until it does work,” he told 7.30.

“The fossil fuel industry is perhaps our most dangerous industry in the world right now. It’ll be economics which forces them to change, but they won’t go down without a serious fight.”

Fortescue won’t be including the emissions from its off-shore iron-ore processing in its 2030 target. However, Forrest is hoping by pioneering Australian companies’ switch towards green hydrogen production, he can spearhead a technological change.

“What I need to do is not a Pyrrhic victory, or virtue signalling, like saying, I’m going to try and stop my customers from using coal. I can’t stop them using coal,” he continued.

“What I’m now working on is a replacement for coal, and that’s green hydrogen.”

Australia’s ‘green hydrogen future’

Hydrogen is currently relatively expensive and carbon-intensive to produce compared to lithium batteries, however many scientists believe it has the potential to replace lithium batteries in the future.

Fortescue is currently in talks with the Jordanian government over investing in hydrogen production facilities in the Middle East, but he says Australia could potentially become the world’s largest producer of renewable energy source.

“Then we could well be that Middle East of energy. We need to grasp that opportunity,” he said.

“With a little bit of vision, a little bit of drive and a little bit of risk, could we create a massive new industry which creates the steel which the world needs, which is zero carbon steel?” 

“That’s our future.”

Fortescue share price snapshot

While the Fortescue share price is the only one of Australia’s big three iron-ore producers to fall overall in 2021, it’s still up more than 90% over the past 12 months.

The Fortescue share price has more than doubled, from just over $10 in May 2020 to its current price today.

More reading

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• ASX lithium shares are soaring. Is it too late to jump onboard?
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops, Challenger plummets, Lynas falls
• Aussie dollar shoots higher! Here are some ASX winners

Motley Fool contributor Lucas Radbourne-Pugh 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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Walkabout Resources Ltd (ASX: WKT) shares are tanking 12% in midday trade after the company announced some changes to its senior management team. After opening today’s session at 37.5 cents, the Walkabout share price is currently trading at an intra-day low of 33 cents.

Let’s take a closer look at the company’s latest news.

Board and management changes

Walkabout Resources shares are on the slide today after the company announced it will be making changes to its board and senior management positions. According to its release, the proposed management restructuring will position the company for the next phase of its growth.  

Walkabout advised that Mr Mike Elliot has been elected as non-executive chair of the board after serving as a non-executive director. The company also announced that Mr Andrew Cunningham has been appointed as chief executive of Walkabout.

Mr Allan Mulligan will be stepping down from the board and will assume the new role of chief operating officer. As a result of Mr Mulligan’s exit, Walkabout will be looking to appoint two additional non-executive directors once suitable candidates are shortlisted.

Walkabout highlighted that the recently acquired debt funding for its Lindi Jumbo graphite project in Tanzania prompted the management restructure.  

More on the Walkabout share price

Walkabout is an aspiring graphite developer with its flagship Lindi Jumbo Graphite project located in south-east Tanzania. The company holds 100% of the mining licence for the project and aims to take advantage of forecast market demand for graphite products.

The Walkabout share price has surged by more than 80% over the past 2 weeks. The ballistic price action was fuelled by the company’s announcement it had secured a US$20 million finance facility for its Lindi Jumbo project.  

Funding was facilitated by Tanzania’s CRDB Bank and represents a major milestone for the company. Walkabout estimates that capital expenditure for the project is around $US32 million, with the secured debt facility meeting more than 60% of the cost.

According to Walkabout, repayment terms include an 8% per annum interest rate with repayments to be made in quarterly instalments over 42 months following a 12-month grace period.

More reading

• The Walkabout Resources (ASX:WKT) share price is rocketing today, up 44%

Motley Fool contributor Nikhil Gangaram 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.

NVIDIA‘s (NASDAQ: NVDA) gaming business has been on fire in recent quarters, and it looks like the segment’s terrific growth is here to stay for the long run. At least that was the indication according to insights from the company’s recent Investor Day presentation.

The graphics specialist is coming off an outstanding year, with revenue jumping 53% in fiscal 2021 to $16.7 billion and diluted earnings rising 73% year over year to $10 per share. And NVIDIA’s guidance for the ongoing quarter indicates that things are about to get even better for the chipmaker. The company originally expected revenue to spike 72% year over year to $5.3 billion in Q1, but it recently said that actual revenue is tracking above that outlook.

NVIDIA investors may want to get used to such eye-popping jumps, as the company’s main growth driver — gaming — is at the beginning of a multi-year growth curve. Let’s see why.

NVIDIA’s biggest business is on a red hot growth streak

The gaming business is NVIDIA’s biggest source of revenue. It produced 50% of the company’s total revenue last quarter, and it recorded 67% year-over-year growth, driven by huge demand for the RTX 30-series cards. It is also worth noting that NVIDIA closed the fiscal year with record gaming revenue of $7.76 billion, a 41% annual increase that outpaced the segment’s five-year compound annual growth rate (CAGR) of 21%.

NVIDIA CFO Colette Kress remarked on the last earnings conference call: “Demand is incredible for our new GeForce RTX 30 Series products based on the NVIDIA Ampere GPU architecture.” She also added that the RTX 30 series cards have been “hard to keep in stock and we exited Q4 with channel inventories even lower than when we started.”

In fact, NVIDIA expects demand to exceed supply for “much of this year,” even though the company says it will have enough stock to support sequential growth for future quarters. It is not surprising to see why such a scenario is unfolding.

NVIDIA estimates that 85% of its installed base of consumer graphics cards needs to be upgraded to the RTX series. That’s because the company’s RTX 30-series cards, based on the Ampere architecture, deliver a huge jump in performance over the older GTX-series cards and Turing-based RTX-series cards. The RTX 30 cards also offer ray-tracing capabilities — a feature that’s becoming an integral part of games nowadays.

NVIDIA says that a mid-range card like the RTX 3060 can deliver more than thrice the performance of a card like the GTX 1660 Super when ray-tracing is turned on. It is worth noting that the RTX 3060 has been launched at a suggested price of $329, compared to the $229 launch price of the GTX 1660 Super. As such, consumers are getting a 3X performance increase for a 40% bump in price.

The favorable price-to-performance ratio of the RTX 30 cards explains why these cards are in huge demand. For instance, NVIDIA launched the RTX 3080 at $699. The card is twice as fast as its predecessor — the RTX 2080 — which had a retail price of $799 at launch. The value proposition offered by the new cards is encouraging NVIDIA consumers, who are willing to pay more money for the bigger performance increase, to upgrade at a faster pace.

Faster upgrades, improved pricing power mean consistent gaming growth

NVIDIA says that its Ampere GPU (graphics processing unit) architecture is ramping up at twice the pace of its predecessors, the Turing and Pascal cards. This is also evident from the fact that the Ampere cards now enjoy two times the share of the preceding Turing cards on popular gaming platform Steam, which boasts 120 million monthly active users. That’s impressive considering that the Ampere-based RTX 30 graphics cards were just unveiled in September 2020.

What’s more, the attractive price-to-performance ratio of the Ampere cards is encouraging consumers to pay more money for a much-improved performance compared to the earlier generation cards. NVIDIA says that the Ampere cards are commanding an average selling price of $360 in the initial months after their launch. That’s a 20% increase over Turing’s average selling price of $300 for the first six months after launch, thanks in part to improved sales of higher-priced cards.

With a huge proportion of NVIDIA’s installed base having yet to upgrade to the new cards, investors can expect the chipmaker to enjoy a combination of higher volumes and improved pricing for a long time to come. This should help the gaming business record consistently high growth levels, boost NVIDIA’s overall revenue and earnings, and help it remain a top growth stock for a long time to come.

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

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

The post A red-hot reason why NVIDIA’s blockbuster growth is here to stay appeared first on The Motley Fool Australia.

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

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The Helloworld Travel Ltd (ASX: HLO) share price is in negative territory today following the release of a trading update. During mid-morning trade, the travel booking company’s shares are fetching for $2.03, down 1.9%.

Q3 FY21 Trading update

Helloworld shares are backtracking today as investors digest the company’s latest financial results.

For the quarter ending 31 March 2021, Helloworld reported an ongoing recovery of its key operational metrics.

Total Transaction Value (TTV) stood at $261.5 million. This reflected an increase on the two previous quarters, but still a long way off from Q3 FY20 – down 79.6%. Helloworld stated that January and February lockdowns impacted TTV performance. Notably, the month of March recorded the highest TTV for the financial year, at $112.5 million.

Revenue for the March quarter totalled $15 million. This is similar to what was achieved in Q1 and Q2 of FY21, $13.1 million and $16.5 million, respectively. Compared to the corresponding period, however, revenue declined 75.8%.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) also came at a loss of $4.4 million for Q3 FY21. This is in line with Helloworld’s previous forecasts announced to shareholders earlier in the year. Year-to-date EBITDA is currently running at a loss of $10.9 million.

The company declared a healthy cash balance of $125.9 million, with total free cash of $75 million. External borrowings totalled $81 million with available headroom on its debt facilities of $30.2 million.

Outlook

With the easing of restrictions and state borders open in Australia, Helloworld is expecting TTV to continue to improve. In addition, the opening of the trans-Tasman bubble could provide a boost in retail, corporate, ticketing and wholesale business divisions.

Provided there are no significant COVID-19 impacts, Helloworld is projecting to reach annualised TTV of $1 billion in 2021. Underlying EBITA is expected to incur a loss of around $14 million to $16 million for FY21.

About the Helloworld share price

Over the last 12 months, the Helloworld share price has gone on a rollercoaster ride. The company’s shares are up over 50% from this time last year, but down almost 20% year-to-date.

On valuation metrics, Helloworld has a market capitalisation of roughly $314 million, with 155 million shares on issue.

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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 Helloworld Limited. The Motley Fool Australia has recommended Helloworld 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 Atlas Arteria Group (ASX: ALX) share price is down today after the toll road company shared its quarterly traffic and revenue update. The company has built and now operates toll roads in Germany, France and the US.

The Atlas Arteria share price is currently trading at $5.92, down from yesterday’s closing price of $5.97.

Let’s take a closer look at today’s news from Atlas Arteria.

Lockdowns = traffic down = revenue down

The company’s report for the quarter ending 31 March 2021 showed a decrease in the number of cars using the company’s toll roads.

On average, the number of cars using Atlas Arteria’s tollways decreased by 12.4% this quarter compared to the first quarter of last year.

Atlas Arteria advised this was because of ongoing COVID-19 related lockdowns in Europe and the United States during the quarter. It claimed that, while COVID-19 lockdowns impacted the prior corresponding period, it was for only 1 month during an otherwise strong quarterly performance.

Performance in France

Atlas Arteria essentially has a stake of around 31% in both the APRR tollway and the ADELAC tollway through different investments.

While the APRR tollway experienced a 12.8% drop in the number of vehicles using it, its revenue wasn’t so hard hit. Due to an increase in the number of heavy vehicles using the tollway, Atlas Arteria’s income from APRR was only 6% less than the first quarter of last year. It brought in around EU€515.5 million this quarter.

The ADELAC wasn’t so fortunate. Border restrictions meant the freeway’s bread and butter – commuters from Switzerland were unable to cross into France. The number of travellers using the freeway dropped by 25.3%, while its revenue dropped 25.7%. Income for the quarter was around EU€8.9 million.

Germany

Atlas Arteria owns the Warnow Tunnel in Germany. Germany spent the entire quarter in a strict lockdown. As a result, the number of travellers using the Warnow Tunnel was the lowest it’s been since the pandemic began.

18.7% fewer vehicles passed through the Warnow Tunnel compared to the first quarter of last year, which was minimally impacted by COVID-19 restrictions. Compared to the previous corresponding quarter, Atlas Arteria’s income from the tunnel was also down by 17.2%, raking in around EU€2.4 million.

The United States

In the US, Atlas Arteria owns the Dulles Greenway in Virginia. According to the company’s release, Virginian’s preference to work from home, government-imposed lockdowns and heavy snowfall all added to a decrease in vehicles using the freeway.

Traffic on the Dulles Freeway was the hardest hit out of all the company’s tollways. It was down 36.4% compared to the previous corresponding quarter and 46.5% lower than the first quarter of 2019. Revenue from the freeway was also down by 37% this quarter. It only brought in around US$11 million in the first quarter of 2021. That’s compared to around US$20 million in that of 2019.

Atlas Arteria share price snapshot

The Atlas Arteria share price is having a bad run on the ASX lately.

Currently, the Atlas Arteria share price is down 8% year to date, although it’s up by 7% over the last 12 months.

The company has a market capitalisation of around $5.7 billion, with approximately 959 million shares outstanding.

More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Tuesday
• What is pushing up the Atlas Arteria (ASX:ALX) share price today?

Motley Fool contributor Brooke Cooper 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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