Macquarie Group Ltd (ASX: MQG) has reported a 32% decline in net profit for the first half of 2021 compared to the previous corresponding period (pcp). Moreover, the annualised return on equity has also dropped by 9.5%, and net operating income has fallen by 13%. 

However, the company also reported a 5% drop in operating expenses versus pcp. The result exceeded the asset management giant and investment bank’s guidance for its first half.

At the time of writing, early market trading has seen the Macquarie share price rise 2.61% to $135.91. 

What is pressuring the Macquarie share price?

Macquarie’s reported losses in its banking and financial services, down 18% compared to pcp. Macquarie Capital was quoted as being “down significantly”.

Banking suffered predominantly due to increased credit impairment charges, as well as a COVID-19 driven deterioration in current and expected conditions. Moreover, the need to support impacted clients required higher headcount. 

Within the investment banking arm, there were lower fees and commissions income due to lower mergers and acquisitions fee income. It also impairment charges from underperforming loan facilities, and the growth of the debt portfolio. Additionally, its assets under management fell 7 per cent to $556.3bn as of September 30.

The investment bank will pay an interim dividend of $1.35 a share on December 22. This will be 40 per cent franked and is down from $2.50 a year ago. Lastly, the investment bank has declined to provide full year earnings guidance due to market uncertainty. 

The Macquarie share price has had a steady rise since the market rout on 23 March,. However, it remains 3.6% lower in year to date trading. 

What did management say?

Macquarie chief executive Shemara Wikramanayake displayed a cautious approach to the remainder of the year to March, 2021, saying: 

Recent months have been overshadowed by the profound human impact of the COVID-19 global health crisis and its economic consequences.

Those impacts are reflected in our result, notably in credit and other impairment charges in relation to the ongoing impact of COVID-19 on our clients and customers and in delays to realising assets from our balance sheet and our funds.

When reduced guidance was announced, the Macquarie share price fell 6% in September. 

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 finished 2% higher on Tuesday
• AMP (ASX:AMP) share price up another 7% on top of last week’s record rally
• 6 major events for ASX shares this week
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Macquarie (ASX:MQG) share price under pressure after 32% profit drop appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3mZhbRo

Vicinity Centres (ASX: VCX) shares are inching lower this morning following the company’s September quarterly update. At the time of writing, the Vicinity share price has fallen 0.72% to $1.37.

Quarterly update highlights 

Vicinity highlighted three core macro trends that were driving its financial and operational performance during the quarter. These included: 

• Government-mandated closures for most retail stores across Victoria since 6 August 2020, with extensive re-openings allowed from 28 October 2020. 
• CBD centres impacted by many city employees continuing to work from home and by travel restrictions. 
• Increased visitation and retail sales in centres outside of Victoria and CBDs compared to the June 2020 quarter. 

As a result, the company’s moving annual turnover (MAT), the total value of consumer spending on a rolling 12 month period, fell 15.2% in September compared to a 7% fall in June. If its portfolio excluded Victorian and CBD centres, MAT would have only fallen 1.7%.

Centre visitation for the week ended 3 November 2020 as a percentage of the same week in the prior year was sitting at 80% for Vicinity’s portfolio. This is an improvement from the September quarter which averaged approximately 58%. 

Vicinity’s cash collections for the September quarter represented 56% of gross rental billings. 

A slower recovery for the Vicinity share price 

Scentre Group (ASX: SCG) announced its quarterly update on Thursday which highlighted much stronger metrics across rent collection, consumer spending and centre visitation when compared to Vicinity. 

This is primarily driven by the fact that Vicinity’s portfolio is much more concentrated in Victoria, where for a 12-week period, 83% of its Victorian tenancies were closed due to government directives. With Victoria coming out of lockdown, Vicinity’s quarterly update did highlight a significant improvement in centre visitation for the week ended 3 November. 

Mr Grant Kelley, Vicinity Centres CEO and Managing Director, said:

We are confident that visitation across our Melbourne centres will continue to rebound, repeating the trend observed in other markets in Australia where the virus has been largely contained. When combined with borders re-opening and the return of domestic tourism, along with a steady increase in workers returning to CBD offices, this should support improved retail conditions across Australia. 

Due to current uncertain circumstances, Vicinity cannot presently provide FY21 earnings guidance. However, assuming no material deterioration in existing conditions, it does intend to pay a dividend for the six months to 31 December 2020. 

Foolish takeaway

Vicinity is unfortunately a step behind Scentre Group given its Victoria-weighted portfolio. Following today’s weaker quarterly update, the Vicinity share price is currently nearly 45% lower in year-to-date trading. 

More reading

• Why Flight Centre, Goodman, Inghams, & Scentre shares are charging higher
• Is the Scentre Group (ASX:SCG) share price set to recover after this update?
• Summer is coming, and none too soon for ASX retail landlords
• Why REITs led the pack on the ASX today
• ASX property shares buoyed by latest market data

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Vicinity Centres (ASX:VCX) share price lower on weak update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3oYbTXY

The OFX Group Ltd Fully Paid Ord. Shrs (ASX: OFX) share price jumped after it struck its largest enterprise partnership when it announced a deal with WiseTech Global Ltd (ASX: WTC).

The OFX share price surged 4.9% to $1.28 while the WTC share price rallied 2.3% to $31.81 in early trade.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) and IT sector gained around 1% each at the time of writing.

OFX share price and WTC share price getting a boost

OFX struck a strategic alliance with the logistics software company that will see OFX money transfer service integrated with Wisetech’s CargoWise platform.

CargoWise customers will have a low-cost way of paying international invoices in 55 currencies through the OFX offering.

“The process for making international payments will be significantly simplified, creating accounts payable efficiencies and a better customer experience,” said OFX in its ASX statement.

“The alliance will be for an initial term of three years, with marketing of the new solution to customers to commence in 4Q21 ahead of a full launch in 3Q22.”

Recurring revenue growth

This deal is expected to generate at least $5 million in annual fee and trading income by FY24, according to OFX.

“It will generate Fee & Trading Income in FY22 and FY23 as we onboard customers,” added the company.

“The alliance will be supported by a capital expenditure investment of approximately $1m over the next 12 months funded by cash.”

But the service will only be offered to CargoWise customers located in countries where OFX operates. This includes Australia, New Zealand, United States, Canada, UK, Europe, Singapore and Hong Kong.

ASX tech stocks back in the spotlight

News of the partnership comes at a time when tech stocks are rocketing. The sector is finding favour again in the wake of the yet-to-be-decided US presidential election.

The tech-heavy NASDAQ is outperforming as investors believe the likely outcome will see Joe Biden win the White House but Republicans control the Senate.

Such as outcome will mean that corporate tax cuts made by Trump is unlikely to be unwound, while record low interest rates will be with us for years.

The same thematic is happening in Australia. Our central bank is committing to keeping rates at 0.1% for at least three years, while the federal government moved to cut taxes in the latest budget.

These measures are seen to favour tech stocks both here and in the US. But they aren’t the only stocks that are well placed to outperform in 2021.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 shoots 1.3% higher on Thursday
• Latest ASX small cap buy calls from top brokers
• Why share markets are shrugging off this uncertainty, and what to expect next
• ASX 200 ends mixed on Wednesday

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post OFX (ASX:OFX) and WiseTech (ASX:WTC) share prices rally on new partnership appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3l4j12y

The Australian Competition and Consumer Commission (ACCC) is investigating purchases of iSelect Ltd (ASX: ISU) shares over competition concerns.

The watchdog was prompted into action after learning Innovation Holdings Australia (IHA), would soon own 35% of all iSelect shares.

According to the ACCC, Innovation Holdings, via related entities, owns CompareTheMarket.com.au, which offers very similar services to iSelect.

Both iSelect and CompareTheMarket.com.au allow consumers to compare insurance, energy and financial products online.

“We are considering whether the completed and proposed acquisitions are likely to substantially lessen competition,” said ACCC commissioner, Stephen Ridgeway.

“iSelect is a competitor to Innovation Holdings in offering comparison services for a range of financial and energy products to consumers and minority stakes held between competitors can give rise to competition concerns.”

Never told ACCC it was slowly buying iSelect shares

Innovation Holdings had already slowly acquired iSelect shares over the past two years, resulting in a 29% stake. None of those transactions were reported to the ACCC.

The commission is now starting a probe as Innovation Holdings proposes to acquire another 6%.

“Companies acquiring strategic or potentially controlling stakes in a competitor will continue to attract ACCC scrutiny,” Ridgeway said.

A spokesperson for CompareTheMarket.com.au (CTM) denied that Innovation Holdings’ shares equated to CompareTheMarket.com.au having a stake in iSelect.

“CTM is owned by Financial Holdings Australia (FHA) which has shareholders in common with IHA but the two are separate entities. The CTM business operates independently of FHA and IHA,” she said.

“The group structure is convoluted but while Compare the Market and Innovation Holdings Australia share common investors, it is not accurate to state that CTM acquired shares in iSelect.”

Notwithstanding this, the spokesperson said it welcomed the ACCC’s enquiries.

“Any step that helps consumers’ ability to make more informed choices about how they spend money is a good thing.”

iSelect acknowledged to the ASX on Friday morning that ACCC is making enquiries regarding IHA’s shareholdings.

“iSelect wishes to confirm that there is no current negotiations with IHA,” stated the board.

The ACCC is calling for submissions from the public on the matter by 20 November. Correspondence should be directed to mergers@accc.gov.au.

Innovation Holdings, through a complex group of entities, also owns insurance brand Budget Direct, and also underwrites policies for third parties like ING, Qantas Airways Limited (ASX: QAN) and Virgin Money UK (ASX: VUK).

iSelect runs the comparison sites iselect.com.au and energywatch.com.au. Its new chief executive, Warren Hebard, only started this week.

iSelect shares were down 1.79% on Thursday, to sit at 28 cents at market close.

More reading

• The iSelect (ASX:ISU) share price was on the move today. Here’s why.

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ACCC investigates shareholder of ASX company appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Id2YAT

The News Corporation (ASX: NWS) share price has shot up 7.88% in early trade today following the release of its first quarter FY21 results.

Top line results

For the quarter ending September 30, News Corp reported a mixed result as it was disrupted by COVID-19.

Total revenue fell to $2.12 billion, reflecting a 10% decline to the prior corresponding period (pcp). The $200 million shortfall was primarily due to the sale of News America Marketing.

Net income rose to $47 million compared with a net loss of $211 million in the prior year. This included non-cash impairment charges of $273 million and higher total segment earnings before interest, tax, depreciation and amortisation (EBITDA).

The company recorded total segment EBITDA of $268 million, a 21% increase on the $221 million from Q1 FY20. The increase was attributed to strong growth in Digital Real Estate services, Dow Jones and publishing books segments.

Adjusted earnings per share (EPS) were 8 cents compared to 4 cents over the pcp.

Free cash flow for the quarter was at $65 million, a large improvement on the negative $83 million in the prior year. Not only did the business provide higher cash to its operating activities, but also lowered capital expenditure.

News Corp closed the quarter with a healthy cash balance of $1.5 billion.

Management commentary

Commenting on the results, News Corp chief executive Robert Thomson said:

News Corp has started the fiscal year strongly, with higher revenue in many of our segments during the first quarter, and a 21% increase year-on-year in profitability, despite the disruptive economic consequences of COVID-19.

It is clear that the digital landscape is changing fundamentally, and the company has been an important catalyst for that change. The principle of a premium for premium content is now recognised, and there will inevitably be further developments in algorithmic transparency and the digital advertising market, two areas in which News Corp has been a leading advocate.

Segment review

Digital Real Estate services

Digital Real Estate services flourished, despite property markets being unsettled by the pandemic, and restrictions on home inspections. Move, the operator of realtor.com, recorded record revenues and profit contribution for the quarter headed by its referral model. This played an important role in overall profitability to the group.

Segment EBITDA jumped to $37 million, an uplift of 45% of the pcp.

Dow Jones

Dow Jones posted a record first quarter in profitability and higher revenues, driven by a record average consumer product subscription. The provider of business news and analysis noted its digital-only subscriptions led the pack with a 29% increase over pcp.

Segment EBITDA rose to $23 million, an increase of 47% over the comparable period.

Book Publishing

Book Publishing continued its strong performance in digital sales, most notably in the general and children’s book categories. Both e-book and downloaded audiobook sales grew, gaining 20% over Q1 FY20.

Segment EBITDA soared to $22 million, an 41% advance on the pcp.

More reading

• The 10 ASX stocks worst hit by a Biden US presidential election win

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the News Corp (ASX:NWS) share price has jumped 8% appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2U08dqh

A Melbourne man has been convicted of dishonest conduct after he was found manipulating the criteria for companies seeking to be listed on the ASX.

In the first criminal prosecution of this kind, Mark Damion Kawecki of Frankston, Victoria has been banned from managing corporations for five years and fined $30,000.

Under ASX rules, a company must have a minimum number of unrelated shareholders before it can be listed. This “spread requirement” is to demonstrate sufficient investor interest and a basic level of liquidity.

According to the Australian Securities and Investments Commission (ASIC), Kaweki applied for shares in four companies that were attempting an initial public offering (IPO) or a relisting.

ASIC alleged that these applications had false information about the beneficial holder of the stocks or false addresses.

Prosecutors told the court that this dishonesty was to artificially meet the ASX’s spread requirement.

Kaweki was charged and pleaded guilty to two counts of dishonest conduct, breaching sections 1041G and 1311(1) of the Corporations Act.

He was a financial adviser at the time of the offences, but back in 2018, ASIC banned him from practising for seven years.

ASIC reminded all parties participating in an IPO or relisting of their obligations to follow both the ASX Listing Rules and the Corporations Act 2001.

More reading

• All eyes on the REA Group (ASX:REA) share price after Q1 results
• Austal (ASX:ASB) share price on watch after vessel delivery
• 2 ASX shares that are growing profit very fast
• 5 things to watch on the ASX 200 on Friday
• Andromeda Metals (ASX:ADN) share price climbs 18%

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Melbourne man found guilty of lying to ASX appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34YE6pz

REA Group Limited (ASX: REA) has today released a mixed FY21 first quarter result. Since the close of trading last Friday, the REA share price has risen by 8.46%. Buoyed by the acquisition news that the company had entered into a binding agreement to increase its ownership interest in India-based Elara Technologies. Elara is India’s fastest growing digital real estate business based on size. 

On one hand, there has been an increase in REA Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) of 8%. On the other hand, the group also saw revenues drop by 3% after broker commissions. An 18% reduction in operating expenses, however, has enabled the company to remain prosperous in a very difficult time. 

During the quarter, REA Group saw overall national residential listings declining 2% directly as a result of COVID-19 lockdowns. Moreover, the second wave in Melbourne, which saw physical property inspections banned, caused listing volumes to decline by 44% for the quarter. In contrast, New South Wales showed signs of a continued market recovery as restrictions eased with a 23% increase in listings for the quarter in Sydney.

The good news for the REA share price

Although listing volumes are down, revenue from Australian residential listings increased for the quarter. This was due in part to deferred revenue driven by the initial market recovery in June, combined with an increase in add-on listing products. 

Nevertheless, revenue from the commercial and developer sector saw a decrease due to COVID-19 restrictions in Melbourne. However, the eviction moratorium caused by the mandatory code of conduct for commercial tenancies also contributed. In addition, large developer project commencements remained subdued as a result of lower investor demand and immigration levels.

REA Group has maintained a careful watch on cost management. This has resulted in an 18% reduction in operating expenditure for the quarter. All cost categories were down due to a combination of ongoing cost management initiatives, including COVID-19 related savings, efficiencies from the timing of the organisational realignment in the first quarter of FY20, and the deferral of marketing spend into later quarters.

Management commentary

REA Group Chief Executive Officer, Owen Wilson, commented:

This result demonstrates the strength of our business, despite continued COVID-19 impacts. I am extremely proud of the resilience and dedication of our teams to continue to deliver new innovations and excellent customer support while working remotely.

While Melbourne’s stage four lockdowns impacted the real estate industry heavily and weighed on our result, it was pleasing to see other markets recover as more normal operating conditions returned.

The way forward

REA Group has a strong balance sheet with low debt levels and a cash balance of $187.5 million as at 30 September 2020. It has access to undrawn facilities including $149 million in banking credit, and a $20 million overdraft facility. Nonetheless, the company has opted not to raise fees until July of 2021 as its customer base still has not fully recovered from COVID. 

Mr Wilson concluded. 

Our business, and Australia’s property sector, continue to demonstrate incredible resilience and we are optimistic that more normal operating conditions will return next year. 

More reading

• Why I would buy REA Group and this ASX blue chip share
• 4 outstanding ASX 200 shares to buy with $4,000
• Is the REA Group (ASX:REA) share price a buy?
• ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result
• REA Group (ASX:REA) share price in focus amid acquisition news

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post All eyes on the REA Group (ASX:REA) share price after Q1 results appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34Y1qUu

The Austal Limited (ASX: ASB) share price will be on watch this morning, following a positive announcement the company released after market close on Thursday.

Here is what the defence shipbuilder announced yesterday.

Vessel delivery

According to the release, Austal advised that its subsidiary Austal Vietnam has successfully delivered the first vessel constructed at the Vung Tau shipyard.

The 94-metre high-speed catamaran has been given to the National Infrastructure Development Company (NIDCo) of Trinidad and Tobago.

The passenger ship was designed at Austal Australia, and features the company’s signature raked bow and optimised hull design. The vessel will be used to ferry people between the islands of Trinidad and Tobago using the maritime transport service sea bridge route.

Austal’s latest catamaran is an all-aluminium vessel that can carry up to 926 passengers and 250 vehicles. The vessel can travel at speeds of up to 37.5 knots and features the company’s ‘smart ship’ technology. This includes an advanced motion control system that stabilises the catamaran in choppy waters, ensuring a safe and comfortable ride.

Austal Vietnam is now well underway on the shipyard’s next project, a 41-metre high-speed catamaran ferry for SGTM of Mauritius. Delivery of the ship is expected to be in the first-half of 2021.

What did the CEO say?

Austal CEO, Mr David Singleton was proud of Austal Vietnam’s accomplishment, highlighting that the shipyard built and delivered the catamaran in less than two years.

He commented:

This is an outstanding achievement for both Austal Vietnam and the Austal Group as we continue to focus and consolidate our defence and commercial vessel capabilities in strategic locations throughout Australasia.

Austal Vietnam is now clearly a valuable asset in our commercial vessel shipbuilding network, building upon and complementing the growing capability in the Philippines, while also freeing up capacity in our Australian shipyard for additional defence contracts for the Royal Australian Navy and export markets.

More reading

• The Austal (ASX:ASB) share price has dipped despite positive news
• Top ASX shares to buy in November 2020
• Buy these 3 ASX stocks that hit a 52-week low during this market meltdown
• Why these 7 ASX 200 shares received broker upgrades this week
• The Austal (ASX:ASB) share price is flat despite major acquisition

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 Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Austal (ASX:ASB) share price on watch after vessel delivery appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ezedjh

Some ASX growth shares grew their operating profit by a lot in FY20. Some of them more than doubled the earnings before interest, tax, depreciation and amortisation (EBITDA).

As described in the linked EBITDA guide above, this profit measure is used to show the day to day profitability of a business.

Businesses that grow EBITDA usually grow net profit and earnings per share (EPS) too. EPS growth is a key factor that many investors focus on to determine the appropriate share price for a business.

Here are two ASX growth shares that grew the EBITDA by more than 100% in FY20:

Redbubble Ltd (ASX: RBL)

Redbubble managed to increase its operating EBITDA by 141% to $15.3 million in FY20 and EBITDA went up by 358% to $5.1 million.

The e-commerce ASX share is an online marketplace which sells artist-produced products like phone cases, wall art, clothing and masks. It operates both the Redbubble and TeePublic online sites.

In FY20 there was a significant increase in activity, partly due to COVID-19. Marketplace revenue grew 36%, gross profit went up 42% and free cashflow improved to $38 million.

At the time of the FY20 result, Redbubble Martin Hosking said: “RB Group’s on-demand fulfilment model and differentiated consumer offerings provide us with distinctive advantages. The strong financial performance follows from these fundamentals. It has been pleasing to see the acceleration of existing trends in the last few months. 2021 represents a year of opportunity for the business. We are positioned to build on a decade of momentum and aggressively pursue the global opportunity presented by the shift to online activity and increasing adoption of e-commerce platforms.”

The ASX share recently told investors about its FY21 first quarter performance. Marketplace revenue went up 116% to $147.5 million, gross profit grew 149% and it generated EBIT of $22.1 million.

The Redbubble share price has gone up by 453% over the past six months.

Kogan.com Ltd (ASX: KGN)

Kogan.com is another business that is generating large profit growth under the current circumstances.

The ASX share revealed that in FY20 its gross sales went up 39.3% to $768.9 million with revenue rising 13.5% to $497.9 million. Active customers increased by 35.7% to 2.18 million in FY20.

Kogan.com’s gross profit went up by 39.6% to $126.5 million. Adjusted EBITDA went up 57.6% to $49.7 million. Net profit after tax (NPAT) grew by 55.9% to $26.8 million.

COVID-19 physical retail effects saw growth accelerate for the ASX share in the second half of FY20. Gross sales, gross profit and adjusted EBITDA grew by 62.5%, 68.3% and 74.1% respectively.

The CEO and founder of Kogan.com, Ruslan Kogan, said with the FY20 report release: “There is a retail revolution taking place as more and more shoppers learn about the benefits of e-commerce. We’re seeing record numbers of first time customers, who then go on to make repeat purchases at a 40% faster pace than previously. For us this is a very exciting trend that shows that once customers learn about shopping online, they change their ongoing behaviour. Once someone discovers the benefits of online hopping, I struggle to see why they would ever go back to the old way of doing things. After almost 15 years of preparation, the revolution occurring in retail represents a significant opportunity for Kogan.com.”

Mr Kogan also referred to the benefit to the company of its growing number of people using its loyalty scheme: “The Kogan First community of members grew exceptionally during the second half, and importantly these loyal members on average purchase and save much more often than non-members, demonstrating loyalty to the platform, and also demonstrating the significant savings and other benefits available through the loyalty program.”

In Kogan.com’s most recent business update – being the month of August 2020 – active customers has grown to 2.46 million (up 12.8% from 30 June 2020). Year on year, gross sales grew 117%, gross profit went up 165% and adjusted EBITDA rocketed 466%.

The Kogan.com share price has gone up 166% by over the past six months.

More reading

• Here are 2 rapidly growing ASX growth shares
• Summer is coming, and none too soon for ASX retail landlords
• Here’s what the US election means for investors
• Is the Adore Beauty (ASX:ABY) share price in the buy zone?
• I plan to invest heavily in ASX shares next week

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 ASX shares that are growing profit very fast appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3mYJdfQ

It was a great day of trade for the S&P/ASX 200 Index (ASX: XJO) on Thursday. The benchmark index stormed 1.3% higher to 6,139.6 points.      

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to rise.

It looks set to be another positive day for the Australian share market. According to the latest SPI futures, the ASX 200 is poised to open the day 38 points or 0.6% higher this morning. In late trade in the United States, the Dow Jones is up 2%, the S&P 500 has jumped 2.2%%, and the Nasdaq has stormed 2.7% higher.

U.S. election result nears.

The result of the U.S. is getting closer. As things stand Joe Biden is leading Donal Trump by 253 to 214 with the result largely dependant on four key battleground states. The first to 270 will be crowned the U.S. President. The U.S. dollar weakened overnight on the belief that Biden is on the verge of winning.

Macquarie half year results.

The Macquarie Group Ltd (ASX: MQG) share price could be on the move today when it hands in its half year results. According to a note out of Goldman Sachs, its analysts have forecast net profit after tax of $957 million. This will be down 34% on the prior corresponding period and in line with the company’s guidance. The consensus estimate is for a net profit after tax $953 million.

Oil prices drop lower.

Energy shares such as Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could miss out on the push higher today after oil prices weakened. According to Bloomberg, the WTI crude oil price is down 1.15% to US$38.70 a barrel and the Brent crude oil price is down 0.95% to US$40.84 a barrel. Oil prices snapped their three-day winning streak amid concerns over European lockdowns.

Gold price races higher.

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great finish to the week after the gold price raced higher. According to CNBC, the spot gold price has stormed 2.8% higher to US$1,950.30 an ounce. Traders have been buying gold after the U.S. dollar softened on the belief that Joe Biden will win the US election.

More reading

• Andromeda Metals (ASX:ADN) share price climbs 18%
• ASX 200 shoots 1.3% higher on Thursday
• Latest ASX small cap buy calls from top brokers
• Why share markets are shrugging off this uncertainty, and what to expect next
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34YSs9m