The Life360 Inc (ASX: 360) share price has ripped 18.48% higher into near-record territory following a well-rounded CY20 performance. 

At the time of writing, the Life360 share price is trading at $4.68 cents.

Strong growth pushing the Life360 share price higher 

Life360 operates a simple to use app developed for families with features that range from communications to driving safety and location sharing. 

In the calendar year, the app made more than 2 million help alerts, covered 52 billion miles of driving with its Life360 crash detection, dispatched more than 14,000 ambulances and made 11 billion safe arrival notifications. 

CY20 proved to be a resilient period in the face of COVID-19. The company continued to focus on building and monetising its user base, with a 39% year-on-year increase in normalised revenue to US$81.6 million, at the upper end of its guidance of US$79-82 million.

The company saw a solid reduction in its underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $16 million, down 44% on the pcp. 

The app recorded 26.5 million monthly active users, near pre-COVID levels of 27.2 million in 2H19. 

Life360 and Google collaboration 

Life360 has rolled out a new feature in Australia, the United States and the United Kingdom, allowing families to get an easy update on their members’ whereabouts by creating a free Life360 account.

This brings together Life360’s leading family coordination services to Google Assistant-enabled devices, including Nest smart speakers, smart displays, Android and iOS phones. 

Randi Zuckerberg appointment

On 20 January 2021, the Life360 share price surged 12% on the announcement that Randi Zuckerberg was appointed as an independent non-executive director. 

She has created award-winning content and experiences that educate families and bring to light issues around digital literacy and safety.

Ms Zuckerberg said:

Similar to what we saw in the early days of Facebook, there’s a strong need for people to connect with a more intimate group – and Life360 offers that intimacy for families and so much more.

It’s exciting to see its success in the family safety space, and I can’t wait to use my experience as a product marketer, content creator and a mother to help the company reach its full potential.

Growth strategy moving forward 

Life360 will focus on three core pillars: building its user base, growing paid membership and expanding reach. 

To build its user base, the company has invested heavily in the free user experience to attract users and stay ahead of the competition. The company has also focused on evolving its brand image from a tracking app or ‘where are you’ to a concept of ‘independence’ and “how are you”. 

The platform’s membership offering is still in its early days. Its new initiatives will aim to improve awareness, conversion and retention of membership offering. 

Finally, the company intends to launch new verticals to expand its reach and revenue potential. This includes options such as hardware devices, elder care and family financial services in the future.  

FY21 outlook 

While there are continuing risks to the company’s revenue streams, it continues to experience organic growth in core subscription revenue. Life360 anticipates that by December 2021, the company will be delivering an annualised monthly revenue in the range of US$110-120 million, a 23% to 34% year-on-year growth rate. 

The company also noted that given current valuations in the US for high growth technology companies, it had received inbound interest that could result in an accelerated listing/dual listing on a US exchange, the acquisition of a strategically important business and/or a merger with a larger entity. 

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Motley Fool contributor Kerry Sun 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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Southern Cross Media Group Ltd (ASX: SXL) shares have fluctuated in morning trade on the back of the group’s half-year results, which include an astonishing 59.3% rise in net profit.

After opening the day up by more than 2%, the Southern Cross share price is now down 2.47% to $2.37 as investors digest the group’s latest numbers.

What did Southern Cross Media report?

The media group declared a net profit after tax (NPAT) of $32.5 million, almost 60% higher than the $20.4 million profit declared for the prior corresponding period (pcp). The company attributed this growth to a leaner operating model and historically low debt levels.

While revenues were down 15.9% on the pcp, this was offset by a 23.6% expense reduction.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 11.5% on the pcp – to $75.3 million.

The group also advised that, subject to no adverse changes in advertising markets, it intends to pay a final dividend for the 2021 financial year. The decision on final dividend will be announced when Southern Cross reports its full-year results in August.

Who is Southern Cross Media?

Southern Cross Media broadcasts programmed content on free-to-air commercial radio, television, and online media platforms across Australia.

The company has 100 radio stations and 105 TV signals in both regional and metropolitan markets. It generates about 70% of its advertising revenue from radio and 30% from television.

Words from the CEO

Southern Cross CEO Grant Blackley gave the following comments on the announcement:

Advertising markets are continuing to improve towards pre-COVID levels as the economy recovers and government restrictions stabilise and ease. Our Q3 revenue is forecast to be between 6% and 8% below the pcp while costs for the full year will reflect the benefits of work done over the past few years to restructure our business.

Blackley added:

We have revitalised our key Breakfast radio shows, led by The Morning Crew with Hughesy, Ed, and Erin on 2DAY FM in Sydney, The Marty Sheargold Show on Triple M Melbourne, and Basil, Xav, and Jenna on our new Triple M station in Perth. This investment is critical to unlocking higher audiences, revenues and earnings.

The poisoned chalice of Sydney breakfast radio

When ratings super magnets Kyle and Jackie O left 2Day FM in 2013 for new venture KIIS 1065, 2Day FM plummeted from the top of the Sydney ratings to near the very bottom. At one point the station reached a low of 2.8% audience share for the time slot.

A cavalcade of hosts over the years came and went as Southern Cross searched for that winning formula again. At first the station went to well-known names Jules Lund, Mel B, and Merrick Watts – before later replacing Mel B with Sophie Monk.

The ill-fated Dan and Maz show later replaced them, only to be themselves succeeded in 2015 by Rove McManus and Sam Frost.

In 2017 Southern Cross Media replaced Rove and Sam with comedians Harley Breen and Em Rusciano. The media company abandoned breakfast programming altogether in favour of music-focused programming in 2019.

The group will no doubt be hoping the new formula of Dave Hughes, Ed Kavalee, and Erin Molan can find success in the fiercely competitive and valuable Sydney breakfast radio market.

Southern Cross share price snapshot

After reaching a low of 11 cents per share in April 2020 – at the height of COVID-19 pandemic – Southern Cross Media shares rocketed in November 2020 from 16 cents to a high of $2.65 by the end of the month. That’s an eye-watering 1,656% increase!

The Southern Cross share price opened today at $2.43 and has since dropped to $2.37 at the time of writing.

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• Silk Laser (ASX:SLA) share price hits record high on stellar first half growth

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The Sandfire Resources Ltd (ASX: SFR) share price is on the rise in morning trade. At the time of writing, shares in Sandfire Resources are up 7.35% to $5.99. 

We take a look at Sandfire’s results for the financial half-year ending 31 December (H1 FY21) below.

What financial results did Sandfire report?

Sandfire’s share price is moving higher today. This comes after the ASX copper and gold producer reported a 13.6% lift in sales revenue to $355.6 million. Up significantly from $313.1 million in H1 FY20.

It was reported that cash flow from the company’s operating activities increased by 26.3% year-on-year to $137.8 million.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for its DeGrussa Operations segment came in at $238.0 million, a 30.6% increase on the $182.2 million reported in the prior corresponding period.

Additionally, Sandfire reported a 78% increase in net profit after tax (NPAT). This equated to $60.8  million, up from $34.2 million in H1 FY20. Basic earnings per share increased 65% year-on-year to 34.1cents.

As at 31 December, the company had $335.8 million cash. In particular, Sandfire had no debt and a global investment portfolio close to $90 million. The company credited the strong balance sheet with production and cost management at its DeGrussa Operations in Western Australia along. Additionally, the Sandfire also credited a big rise in copper prices.

Management commentary

Commenting on the results, Sandfire’s managing director, Karl Simich, said:

This has been another standout performance, with our low-cost, high-margin Western Australian mining operations capitalising on the improving copper price and the Company taking important steps towards its vision of creating a diversified, multi-operational mining house…

The announcement of a Final Investment Decision for the US$259 million development of the T3 Motheo Mine in Botswana is a significant milestone for the Company and represents our first mine development outside DeGrussa – and one of the few significant new copper mines currently being developed anywhere in the world.

Due to this performance, Sandfire will pay an interim dividend of 8.0 cents per share (cps) fully franked. This is up from 5.0 cps paid in H1 FY20.

Share price snapshot

Taking today’s intraday gains into account, Sandfire shares are up 27% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is down 0.4% at that same time.

Year-to-date the Sandfire Resource’s share price is up 8.5%.

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Motley Fool contributor Bernd Struben 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 Silk Laser Australia Ltd (ASX: SLA) share price has been a strong performer on Thursday.

In late morning trade the laser, skin care, and cosmetic injections company’s shares are up 6% to a record high of $4.55.

This means the Silk Laser share price is now up 32% since its IPO in December.

Why is the Silk Laser share price shooting higher?

Investors have been buying Silk Laser shares this morning following the release of a very strong half year result.

For the six months ended 31 December, the company reported a 62% increase in network sales to $44.9 million and a 78% lift in revenue to $30.6 million.

Management advised that favourable consumer trends aligned with its successful execution of sales campaigns, resulting in strong like-for-like growth across its core offerings. These include laser hair removal, cosmetic injectables, skin treatments, body contouring, and skincare products.

In addition to this, the result was supported by the expansion of its clinic network. Silk Laser added 4 new clinics, bringing its total to 56.

Positively, margin expansion underpinned even stronger earnings growth. Silk Laser reported a 166% increase in pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) to $10.6 million.

On the bottom line, net profit after tax came in 305% higher than the prior corresponding period at $4.7 million.

“A busy and highly successful period”

Silk Laser’s Managing Director and Co-Founder, Martin Perelman, was rightfully pleased with the half.

He said: “The first half of this financial year has been a busy and highly successful period for SILK, and I am very proud of our first results delivered as a publicly listed company. All of SILK’s service categories performed in line or above expectations and the Company is well positioned for a strong second half.”

Outlook

Speaking of the second half, the company is expecting a strong period and has upgraded its guidance to reflect this.

On the basis that there are no significant COVID disruptions to second half trading, Silk Laser now expects network sales in the range of $82 million and $86 million. This compares to previous guidance of $81 million.

And pro forma EBITDA is now expected in the range of $15 million and $16 million. This is up from $14 million previously.

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Motley Fool contributor James Mickleboro 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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PointsBet Holdings Ltd (ASX: PBH) shares are languishing today following the company’s release of its FY21 first-half (1H21) results. At the time of writing, the PointsBet share price has slumped 1.8% to $15.24.

Today’s release marks the company’s first interim result following its transformational media partnership with NBCUniversal. 

PointsBet share slumps on triple-digit growth

The PointsBet share price is failing to respond today despite the company delivering a group net win of $82.8 million, up 177% on the prior corresponding period (pcp). Net win is defined as the total amount of gaming income after prizes or winnings have been paid out. At the revenue level, which is typically close to the net win, the group recorded a 174% increase from $27.4 million to $75.1 million. 

From a geographic perspective, a record net win was delivered in Australia of $84.8 million, up 211%. Meanwhile, PointsBet’s United States presence continued to scale, with a 345% increase in betting turnover to $819.1 million. The region’s net win came in at a loss of $2.0 million. 

The number of active clients on the platform also continued to grow, with users in Australia and the US doubling to 211,000 from 102,000 in 1H20. 

US sports betting, a runway for growth 

Sports betting in the US was illegal up until May 2018, when the Supreme Court ruled that the 1992 federal ban on sports betting in most states violated people’s rights. 

The US sports betting market is seen as a land grab opportunity for bookmakers to rapidly grow their customer bases and revenue. Morgan Stanley and JP Morgan are bullish on the sector, estimating the US sports betting and iGaming industry to be a US$12 billion opportunity by 2025.

PointsBet currently has operations in New Jersey, Iowa and Indiana. Operations in Illinois are scheduled to commence in September 2020 with Colorado commencing in November. 

The continued strong performances in the US has seen PointsBet grow its online handle market share to 10.8% in New Jersey, 8.9% in Illinois, 3.8% in Indiana, 2.4% in Iowa and 1.0% in Colorado. 

The company is pulling on its NBC Sports media assets to continue targeted marketing activities in New Jersey, Indiana and Illinois. 

The significant growth opportunity does come at a cost of significant marketing expenses and a string of net losses in the short to medium term. For the half, PointsBet delivered an earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $69.0 million. Its sales and marketing expenses surged from $20.6 million in 1H20 to $62.9 million in 1H21. Despite the losses, the company had $388.3 million in cash and cash equivalents to support its growth story moving forward. 

What’s next for PointsBet? 

PointsBet is focused on the development and launch of its iGaming product as consumers move away from in-person casino gambling to mobile apps. The company is running this product in-house, with complete control over its product roadmap, unlike some competitors which are reliant on third parties.

PointsBet is targeting an inaugural launch in Michigan in 2H21, followed by New Jersey. Elsewhere, the company hinted at a potential launch in New York and Canada.

Based on the current PointBet share price, the company has a market capitalisation of around $2.85 billion.  

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Kerry Sun owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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Youfoodz Holdings Ltd (ASX: YFZ) has delivered its inaugural earnings report this morning. The food delivery company has given investors a first post-float look at its numbers for the first half of the 2021 financial year (1H21).

After surging 2.62% to a high of 98 cents per share in early trade, the Youfoodz share price has retreated to 96 cents at the time of writing, up 0.52%.

What did Youfoodz report this morning?

Youfoodz had delivered a gross revenue metric of $100 million (on the dot) for 1H21. That’s a 16.5% increase on the company’s revenue of $85.8 million for the same period last year (1H20). Meanwhile, net revenues were also up 15.3% from $63.6 million in 1H20 to $73.4 million in 1H21.

That helped push gross profits up 20.1% to $23.4 million, up from $19.4 million in 1H20.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $0.5 million versus $1.7 million in 1H20 and a $4.4 million loss in 2H20.

Net profits after tax were $2.5 million for the period, which contrasts nicely with the loss of $1.9 million that the company posted in 1H20. No dividends will be paid for the period.

Meanwhile, Youfoodz reported some pleasing numbers in terms of customer growth. The number of orders the company received during the period was 644,265, a 34.5% rise over the prior corresponding period. New customers were up 89.6% to 87,895, while active customers increased by 47.8% to 197,563.

The company also announced that next day deliveries are now available in Queensland, New South Wales and Victoria. 70% of the company’s customers can now order next day delivery.

Youfoodz says that it “remains confident” it will achieve the growth targets set out in its initial public offering (IPO) prospectus, which include gross revenue of $199.8 million, net revenue of $149.9 million and EBITDA of $2.9 million for the 2021 financial year.

About the Youfoodz share price

Youfoods only hit the ASX boards on its IPO back on 8 December last year. It was a disappointing debut at the time, with the Youfoodz share price crashing 25% lower from its IPO price of $1.50 a share to $1.12. The company has not touched $1.50 since but did go as high as $1.32 last month.

However, on the current share price, Youfoodz is more than 15% off those highs. As recently as last Friday, the company was touching a new all-time low of 87 cents a share.

On the current Youfoodz share price, the company has a market capitalisation of $131.75 million.

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Motley Fool contributor Sebastian Bowen 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 Dicker Data Ltd (ASX: DDR) share price has come under pressure on Thursday following the release of its full year results.

At the time of writing, the technology hardware, software, and cloud distributor’s shares are down 5% to $10.31.

However, despite this decline, the Dicker Data share price is still up over 64% since this time last year.

How did Dicker Data perform in FY 2020?

Dicker Data was on form again in FY 2020 and delivered further solid revenue and profit growth.

For the 12 months ended 31 December, the company reported a 12.8% increase in revenue from ordinary activities to $2 billion.

This was driven by strong demand for remote working solutions and virtual capabilities and the accelerated digital transformation of businesses as a result of the COVID-19 pandemic.

The addition of a number of new vendors over the past few years has supported its growth. This has increased the breadth of products on offer.

In respect to earnings, Dicker Data recorded a profit before tax of $81.9 million. This represents a 27.7% increase on the prior corresponding period.

Whereas on the bottom line, net profit after tax rose 5.3% to $57.2 million. However, it is important to note that FY 2019’s profit after tax includes profit from the sale of property. This profit has been excluded from the above-mentioned profit before tax metric.

Adjusted underlying earnings per share increased 19.6% year on year to 33.95 cents per share.

In light of this strong form, the Dicker Data Board paid out quarterly dividends totalling 35.5 cents per share during the 12 months.

Management commentary

Dicker Data’s Chief Executive Officer and Chairman, David Dicker, commented: “Our FY20 result represents over 42 years of experience and a significant growth trajectory. Since being listed on the ASX on 24 January 2011 at an initial market cap of $25 million, today shares have recently traded around $12 with a market cap of just under $2 billion.”

“Over a decade, an original shareholder’s stake of 10,000 shares at $2,000 would now be worth around $120,000. This solidifies the company’s status as a true Australian success story and a fast growing and high-returning stock.”

Outlook

Although no guidance has been provided for FY 2021, Mr Dicker spoke positively about the company’s outlook.

He said:

“Moving into the new year, 2021 presents significant opportunity for the technology sector with digital transformation accelerating, businesses becoming digital natives and the evolving hybrid workforce driving the need for smarter, faster and collaborative technology solutions.”

“There is no doubt cybersecurity will continue to be a key focus for all sectors in 2021, with intelligent solutions like Zero Trust enabling secure, compliant, and protected technology environments. We saw an unprecedented spike in demand for devices throughout 2020 and expect this to continue this year. We are anticipating a high level of growth in automation, machine learning and data capture and analysis tools as businesses and governments prioritise efficiency and productivity within their operations.”

“Another key catalyst for growth in the next 12 months, is the Company’s recent partnership with VMware (NYSE: VMW). Not only will this unlock the direct VMware business, but an entire ecosystem of market-leading technology solutions through the large number of VMware’s strategic and technology alliance vendors we already work with.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is climbing higher following the release of its first-half results for FY20. At the time of writing, the travel agent’s shares are up 7.10% to $17.50.

Let’s see how the company performed for the H1 FY20 period.

What were the financial highlights?

The Flight Centre share price is on the move as investors digest the company’s latest results.

According to its release, Flight Centre advised that it is continuing to weather the difficult trading conditions caused by COVID-19. However, an eventual recovery is on the horizon once the pandemic subsides.

It noted that for the six months ending 31 December 2020, the total transaction value (TTV) stood at $1,533 million. This was a stark but expected fall compared to the $12,399 million recorded in H1 FY20. In essence, the TTV metric represented 12% of the prior corresponding period (pcp).

Total group revenue came to $160 million as opposed to the $1,546 million achieved at the same time last year. Overall revenue margin reduced from 12.5% in H1 FY20, reflected upon heavier domestic and corporate travel weightings. The margin is expected to increase when international air travel resumes.

As a result, Flight Centre recorded an underlying loss of $247 million for the first-half period. Management improved the overall bottom line through cost reductions strategies along with the government’s JobKeeper stimulus program.

Net operating cash flow came at a loss of $30 million primarily attributed to putting the business in hibernation mode.

The company closed the calendar year with a very strong cash balance of $1,670 million. This is almost double of what Flight Centre reported in the H1 FY20 term.

Unsurprisingly, the board again moved against declaring a dividend in light of the current economic situation.

Management commentary

Flight Centre managing director, Graham Turner, touched on the company’s tough operating market. He said:

The conditions we have encountered since March last year have undoubtedly posed the greatest challenge that our industry and many others have faced. Rather than enter a holding pattern ahead of future domestic and international border re-openings, we are taking steps to ensure we are well placed for the eventual recovery.

We have become a leaner and more efficient business with a long liquidity runway, which has been crucial during this challenging and uncertain period.

Outlook for Flight Centre

Looking ahead, Flight Centre stated that recovery is largely dependent on the government’s travel policies and the vaccines’ success. With this uncertain future, the company could not provide guidance for the remaining period of the 2021 financial year.

The company revealed that sales began to drop off last month due to tightened domestic border restrictions along with international still remaining closed. The group is targeting to break-even in both leisure and corporate travel during the 2021 calendar year.

The Flight Centre share price is has fallen heavily in the last 12 months, down 44%.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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TPG Telecom Ltd (ASX: TPG) shares are moving around this morning following the company’s release of its full-year results for the period ended 31 December 2020. At the time of writing, the TPG share price is down 0.85%, trading at $6.96. TPG shares opened slightly lower this morning before leaping to $7.15 only to retreat again.  

Here’s a wrap of the company’s annual update.

TPG releases first post-merger results

The TPG share price is up and down today after the company’s directors noted that comparing the latest results with prior periods is complex due to its merger in 2020.

On 30 June 2020, TPG announced that the company (previously named Vodafone Hutchison Australia) was officially admitted to the Australian Securities Exchange.

Following this, TPG Telecom Ltd merged with TPG Corporation Ltd on 13 July 2020.

Keeping these merger activities in mind, the company reported that its annual revenue for FY20 jumped 24% to $4.35 billion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) also shot up 18%, reaching $1.39 billion.

Earnings per share (EPS) hiked up to 64 cents, compared with negative 68 cents in FY19.

Operating cash flow for FY20 was $1.2 billion compared to $1.3 billion in FY19.

In other news impacting the TPG share price, the board resolved to pay a final 2020 dividend of 7.5 cents per share.

CEO comments

Reflecting on annual performance, TPG chief executive officer and managing director Iñaki Berroeta said:

In 2020, we completed the merger and delivered on our promises to customers and shareholders in the most trying year for Australia’s economy and society in decades, while managing a number of significant regulatory challenges…”

As we move into 2021, we are building on momentum gained in the final quarter of 2020, continuing our merger integration plans, our 5G mobile network is on track to reach scale in the top six cities by the end of the year, and we will begin offering 5G fixed wireless services in the first half.

TPG share price snapshot

The TPG share price has tumbled by nearly 15% over the past six months. Year to date, TPG shares are also slightly down. Based on the current share price, the company has a market capitalisation of around $13.1 billion with 1.9 billion shares outstanding.

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Motley Fool contributor Gretchen Kennedy 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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It seems now is not the time to be a leisure and entertainment operator. The Ardent Leisure Group Ltd (ASX: ALG) share price is down 60% since its pre-COVID levels, with today’s 1H21 result showing mounting losses and more uncertainty. 

Ardent share price slips on mounting losses

The Ardent share price is currently down a modest 1.59% to 62 cents, perhaps signalling that the losses and uncertainty came as no surprise given current circumstances. 

Ardent’s revenue declined 44.3% to $137.6 million, driven by COVID-19 adversely impacting visitation to both its entertainment and theme park venues. This translated into an $84.6 million net loss before tax, compared to the $34.6 million in 1H20. 

Segment overview 

Ardent’s Brisbane-based theme parks and US indoor entertainment attractions represent its core segments. 

The company’s theme park attractions, notably Dreamworld and WhiteWater World, remained closed until 16 September 2020. This, along with ongoing border restrictions, led to a decline in attendance and revenue compared to 1Ha20.

Despite the 63.6% decline in revenue to $13.1 million, the division recorded a modest earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $3.6 million, compared to $5.4 million in 1H20. 

Ardent believes its theme parks division is well-positioned to participate in the post-pandemic recovery, focusing on discounted annual pricing and new products for when restrictions ease. 

Ardent’s entertainment division incorporates 44 centres in the US with a unique ‘eat, bowl and play’ experience. This segment saw a 37.7% decline in revenues to US$54.4 million, reflecting lower consumer demand and temporary centre closures during the period. 

A second surge of COVID-19 cases in the US in November and soft corporate event sales during the holidays lead to a decline in performance to close out the first half of FY21.

Despite the headwinds, the entertainment division has proved to be resilient in earnings and recovering at a pace quicker than anticipated. For January 2021, 37 of its 44 centres generated positive EBITDA.

Looking ahead 

The company expects trading in the second half of FY21 to be challenging due to ongoing uncertainty associated with COVID-19 and the end of the JobKeeper subsidy.

While the Australian Government vaccine program provides an optimistic outlook, Ardent believes that uncertainty is likely to prevail for the next 12 months. 

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Motley Fool contributor Kerry Sun 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.

The post The Ardent (ASX:ALG) share price dips as half-year losses steepen appeared first on The Motley Fool Australia.

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