The last year has been tough. We’ve had bushfires, floods, and now coronavirus. The S&P/ASX 200 Index (ASX: XJO) is down 14% from this time a year ago.
We take a look at the 10 ASX 200 shares that have fallen the most over the last 12 months.
Southern Cross Media Group Ltd (ASX: SXL)
Shares in Southern Cross Media Group have fallen 89% over the past year as advertising markets have taken a turn for the worse. The radio broadcaster recently completed a $169 million equity raising. Funds from the raising will be used to reduce debt.
Southern Cross cancelled its FY20 interim dividend and has announced no final dividend will be paid. Advertising revenue for the 9 months to 31 March 2020 was down 10% compared to the prior corresponding period. Q4 FY20 and Q1 FY21 advertising revenues are expected to be materially impacted by COVID-19 and be down 30% or more on the prior corresponding periods.
Pilbara Minerals Ltd (ASX: PLS)
Shares in Pilbara Minerals are down 71.6% from this time a year ago. The lithium and tantalum producer has suffered as lithium prices have declined since mid last year. Lithium was trading at above CNY75,000/tonne last year but has since dropped to below CNY45,000/tonne.
Pilbara is pursuing a moderated production strategy. The company is focused on matching production and available stocks to customer demand, with a view to minimising investment in working capital. Final tonnes shipped for the March quarter were at the lower end of sales guidance.
Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre shares have fallen 70.8% over the past year, with the majority of those falls since the coronavirus outbreak. In March 2020, Flight Centre’s total transaction value was just 20-30% of normal levels. The very low revenue environment is expected to continue in the short term.
Flight Centre has announced the closure of more than 50% of leisure shops globally, including more than 40% of Australian leisure outlets. 6,000 support and sales staff have been stood down, or in some cases, made redundant.
The company undertook a $700 million equity raising last month. Funds will be used to ensure it has the balance sheet flexibility and liquidity to manage through a prolonged period of disruption to the travel industry.
Webjet is another victim of the coronavirus pandemic with shares down 70.6% over the past year. The travel company undertook a $346 million equity raising last month to strengthen its balance sheet. Proceeds from the raising are expected to provide for operating costs and capital expenditure through to the end of 2020.
A cost reduction program has been implemented to mitigate near term financial impacts. This includes redundancies, a reduction in staff working hours, and a freeze on all non-essential spending. Cash flow savings of around $13 million a month are expected.
Shares in G8 Education have dropped 65.7% over the past year. G8 Education runs more than 470 early learning centres across Australia. Under the Federal Government’s Early Childhood Education and Care Relief Package, the government will make weekly payments to G8 equivalent to 50% of each centre’s fee levels prior to the impact of COVID-19.
G8 Education undertook a $301 million equity raising in April to provide additional liquidity. It will also strengthen the balance sheet to position the company for further growth opportunities during the recovery phase.
Unibail-Rodamco-Westfield (ASX: URW)
Unibail-Rodamco-Westfield shares have fallen 63% since this time last year. The shopping centre operator has suffered due to lockdowns in Europe which have impacted its properties in the region.
Lengthened lockdowns mean conventions and exhibitions remain on hold, and foot traffic at shopping centres is down. Many retailers are seeking rent reductions from landlords as coronavirus sees them facing plummeting revenues. Unibail-Rodamco-Westfield may see lower rental revenue from its properties as the crisis continues.
Shares in oOh!Media are down 62.9% from this time last year. The company has been a victim of weak advertising markets which have been hit hard by coronavirus. oOh!Media operates a network of more than 37,000 billboards in public locations including airports, train stations, bus stops, retail centres, and universities.
With public movement slowing due to the spread of coronavirus, oOh!Media’s assets stand to lose out on views. Outdoor advertising is likely to suffer as lower foot traffic means lower audience levels. Additionally, clients have been slowing advertising spend as the economic impacts of the virus take hold.
Oil Search shares have fallen 59.8% over the past year. The oil and gas producer has suffered from declining oil prices which fell from above US$60 a barrel earlier this year to below US$0 recently.
Oil Search’s March 2020 quarter revenue was down 20% on the December 2019 quarter despite a 5% increase in production. Revenue was impacted by a 13% fall in sales and 20% lower oil prices.
Shares in Whitehaven Coal have dropped 58.5% from this time a year ago. The miner recently downgraded its coal sales target for the second time and ruled out investing in mine expansion due to volatile financial markets.
Coal sales were down in the March quarter. Equity coal sales declined 19% on the prior corresponding period. Managed coal sales were down 22%. Saleable coal production also fell during the quarter, down 15%.
Whitehaven has 3 major development projects under consideration which would expand production over the next decade. The company has announced it will not make financial investment decisions on the projects this year due to volatile financial market conditions.
Virgin Money shares are down 58% over the past year. The company offers credit cards, home loans, superannuation and insurance products, including travel insurance. Sales of its travel insurance products have no doubt declined and will remain depressed for the foreseeable future. Investors are likely also concerned about the prospect of rising defaults on Virgin’s credit card and loan offerings.
In the meantime, those out of work may need to use their credit cards to meet basic living expenses, with no clear way of meeting repayments. Many of the newly unemployed will also have entered the coronavirus crisis with credit card debt, which they now may struggle to repay.
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As of 7/4/2020
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Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and oOh!Media 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.
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