The Southern Cross Media Group Limited Ltd (ASX: SXL) share price has fallen lower in today’s trade following release of the company’s FY20 results. The Southern Cross share price bounced higher at the opening bell to 18 cents but has since retreated to 16 cents at the time of writing. This is 5.88% lower than yesterday’s closing price of 17 cents. 

Having declined more than 80% from its 52-week high of 93 cents in September last year, the Southern Cross share price has faced a rocky period in FY20 to say the least.

So how did the company perform in the past financial year, and how is it shaping up moving forward?

What does Southern Cross Media do?

Southern Cross provides content for Australians through its radio, television and digital assets. It is the parent company for Southern Cross Austero, which claims to be “Australia’s biggest entertainment company with the ability to reach more than 95% of the Australian population” via its various channels.

Key brands include 2Day FM, Triple M and the Hit Network, and the company also engages with the Nine Network, Seven Network, and Network Ten in programming.

FY20 results

Despite the profoundly challenging economic environment, Southern Cross managed to report a profit of $25.1 million for FY20. In addition to remaining profitable, it recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) of $108.2 million for the year, translating to a positive margin of 20%. Equally notable was that all four quarters of FY20 were EBITDA positive, unlike many other members of the S&P/ASX200 Index (ASX:XJO) which have reported this month.

Southern Cross’ revenues dipped by 18% for both Audio and Television assets, and the company explicitly stated it does not expect to pay a dividend in FY21, with restoration of dividends likely postponed until FY22.

Removing dividends from the equation will certainly bolster the company balance sheet, which the announcement referred to as ‘robust’ due to the recent equity raising and historically low net debt of $131 million.

A particularly bright spot for Southern Cross was the performance of PodcastOne Australia, which turned cash flow positive and grew revenue by 96% to $4.6 million in FY20. The formidable growth of podcast consumption is absolutely a tailwind for the company, albeit just one facet of the holistic business operations. The media release also indicated the company expects advertising revenues from podcasting to continue to rise in FY21, having seen the revenue of PodcastOne grow by 112% over the past 12 months.

Is the Southern Cross share price too cheap to ignore?

Considering how high the Southern Cross share price once was, it would be tempting to buy into the company now and sit on it for the next couple of years. I expect podcasting, and its associated advertising revenue to continue growing at a strong pace. It’s also likely that Southerm Cross’ radio stations will continue to maintain loyal followings.

To capitalise on these followings, the company highlighted that in FY21 it “will continue to grow our digital auto ecosystem with premium content, platforms and products attractive to our listeners and advertisers.”

On the flipside, it is the case that revenues from free-to-air television continues to decline, particularly as consumers have shifted to paid subscription services like those offered by Stan and Netflix Inc (NASDAQ: NFLX). Coupled with this, Southern Cross explicitly speculated it will likely not quality for the JobKeeper extension beyond 27 September, and this may lead to liquidity issues or cash flow shortages in the coming months.

Foolish takeaway

In balancing potential risk to reward, the current Southern Cross share price remains only a watchlist item for me at this point. I think the podcasting model has the potential to continue to grow in profitability, but these gains could be offset by free-to-air television continuing to shrink in the future.

The fact that Southern Cross maintained its profitability for FY20 is a big tick nonetheless, so for prospective investors with a greater risk appetite, I think there could be considerable upside to today’s Southern Cross share price. 

More reading

• ASX 200 Weekly Wrap: Surging commodity prices snap ASX 200’s losing streak
• These were the worst performing ASX 200 shares last week

Toby Thomas 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 Netflix. The Motley Fool Australia has recommended Netflix. 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 Southern Cross share price drops 6% on FY20 earnings appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3geuXf0

Reliable S&P/ASX 200 Index (ASX: XJO) dividend shares seem few and far between in the current backdrop of  the coronavirus pandemic. But amid the instances of deferred payouts, weak earnings and dividend caps occurring in sectors like banks and insurers, here are 3 leading ASX200 dividend shares that I think investors could buy right now. 

1. WAM Capital Limited (ASX: WAM) 

WAM is a listed investment company with more than a decade of increasing fully franked dividend payments to investors. It provides investors with exposure to an actively managed diversified portfolio of undervalued growth companies listed on the ASX. 

In the company’s July investment update, WAM highlighted retail and tech shares as major benefactors to its portfolio. Its holdings in City Chic Collective Ltd (ASX: CCX) and Nextdc Ltd (ASX: NXT) significantly contributed to its investment portfolio outperformance during the month.

WAM currently pays a fully franked dividend yield of 7.60%. I believe its versatile investment portfolio and demonstrated history of paying dividends make it one of the best ASX200 dividend shares to buy right now. 

2. BHP Group Ltd (ASX: BHP) 

Strong iron ore prices will continue to buoy BHP’s profits and dividends. This month, a surge in Chinese steel demand has pushed iron ore prices to levels comparable to July 2019 when global iron supply took a hit following Vale SA’s dam collapse. 

BHP’s full year result for FY20 highlights a stable performance across the board with its EBITDA down 5% to US$22.1bn while underlying basic earnings per share increased by 2% to US$179.2 cents per share.

It announced a final dividend of US$0.55 per share which brings its total payout in 2020 to US$1.20 per share. In an environment where iron ore supply continues to face disruption due to COVID-19, alongside China’s recovering economy, investors can expect BHP to maintain its position as a leading ASX200 dividend share. 

3. Tassal Group Limited (ASX:  TGR)

Tassal delivered a positive FY20 result on Wednesday despite sales challenges imposed by the pandemic.  The company delivered a 23.4% increase in operating EBITDA, a 18.3% increase in statutory NPAT and a final dividend of 9 cents per share. This brings its total dividend for 2020 to 18 cents per share. 

Overall, Tassal has successfully executed its growth strategy by increasing its operating efficiencies within salmon production while diversifying into prawns.

In FY21, the company will continue to optimise Tassal-branded salmon sales and reduce cost $/kg. Plans to lift prawn harvest volumes should underpin a material lift in prawn earnings.

Tassal has demonstrated tenacious earnings and a focus on continuous production efficiency. Its strong and reliable earnings make it another worthy ASX200 dividend share to buy today. 

 

More reading

• After the stellar COVID-19 rebound, can ASX share prices keep rising?
• How the OZ Minerals share price is benefitting at Rio Tinto’s expense
• Tech shares race to record highs as Bank of America tips BHP and Rio shares
• BHP share price on watch as final dividend slashed by 30%
• 2 easy ASX shares for a beginner to buy today

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 3 top ASX200 dividend shares to buy right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3l489C6

The Chalice Gold Mines Limited (ASX: CHN) share price has gained 40% so far in August. That puts Chalice’s share price gain at a whopping 508% since 2 January.

By comparison the All Ordinaries Index (ASX: XAO) has gained 3.4% in August and is down 8.0% for the calendar year.

Though trading at a premium compared to today’s share price, Chalice Gold wasn’t immune to the COVID-19 selloff that gripped the ASX. Chalice’s share price tumbled 47% from 24 February to 16 March. Investors lucky enough to have snapped up shares on the low would be sitting on gains of 806% today.

Not bad.

Chalice Gold has a current market cap of $461million. It next reports earnings on 22 September.

What does Chalice Gold Mines do?

Chalice is an Australian gold and mineral exploration company based in Perth, Western Australia. The company has a portfolio of large, precious and base metal projects in premier locations across Australia.

Chalice holds the 100%-owned Pyramid Hill Gold Project in Victoria’s under-explored northern Bendigo gold district of Victoria. But Chalice is after more than gold. The company also is exploring for nickel at its King Leopold Nickel Project in the frontier Kimberley region of Western Australia.

As at July 2020, Chalice had a cash and investment balance of $54 million. Chalice listed on the ASX in 2006.

Why did the Chalice share price skyrocket 508% in 2020 and 40% in August?

Chalice’s share price surge began in March. But it had little to do with the wider market bounce from the viral selloff and everything to do with its new mineral discoveries.

In early March, Chalice announced that it had struck new gold targets at its Pyramid Hills project in Victoria.

And the good news has kept rolling in for Chalice shareholders since.

On Monday this week (17 August) Chalice released an announcement to the ASX, reporting ” significant extension of high-grade PGE-Ni-Cu-Co zones at Julimar”.

Chalice Managing Director, Alex Dorsch noted: “This is an exciting step-change in our ongoing exploration program at Julimar in that the new results highlight the potential for material growth in the high-grade zones we have identified to date.”

Though sliding in early afternoon trading today, Chalice share price is up 6.5% since the announcement.

More reading

• Why Kazia Therapeutics share price has skyrocketed today
• Southern Cross share price drops 6% on FY20 earnings
• 3 top ASX200 dividend shares to buy right now
• Perpetual share price gets a boost from full year results
• Medibank share price slumps after profits plunge 30%

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. 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 Chalice Gold Mines share price soars 40% in August and 508% in 2020 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3l0IvOG

The Perpetual Limited (ASX: PPT) share price has received a boost today, after the company released its results for the 2020 financial year (FY20).  

Highlights from Perpetual’s full-year results

Earlier today, Perpetual released its financial report for FY20.

The company’s report was headlined by a 29% decline in net profit after tax for FY20 of $82.0 million. According to the company, lower revenues from outflows and lower funds under management stagnated its performance. Average funds under management were $25 billion, down 13% year-on-year.

Perpetual also recorded a 5% drop in revenue to $487 million for the full-year. Perpetual Investments, which contributes 36% to the company’s revenue, recorded a profit of $55 million, down 31% from the prior year. The company also recorded positive results in its corporate trust division, where profits before tax rose 16% for the year.

The fund manager also announced that it will be paying a final dividend of 50 cents per share. As a result, Perpetual will be paying a total dividend of $1.55 per share, reflecting a 94% payout ratio.

The company’s management noted that Perpetual’s diversified business has provided the company with some protection in a volatile market. In addition, Perpetual highlighted the poor performance of the overall S&P/ASX All Ordinaries Index (ASX: XAO), which contributed to lower revenue for the year.

What is the outlook for Perpetual?

In the company’s full year report, Perpetual elaborated on the company’s future dividend settings. Perpetual noted that future dividends will be paid on revised underlying profit after tax, in order to reflect the company’s operating cashflows.

The company also highlighted its recent acquisition of international investment firm Barrow Hanley. According to Perpetual, the takeover will boost assets under management to $92.3 billion from less than $30 billion, whilst also giving the company greater access to global investment products and investor base. Perpetual completed a $275 million capital raising in late July to help fund the $465 million purchase.

Perpetual also noted that the COVID-19 pandemic will continue to cause a challenging market in the medium to long-term. However, the company’s management assured shareholders that Perpetual is well capitalised to navigate the challenging environment.

Foolish takeaway

At the time of writing, the Perpetual share price is trading more than 2% higher for the day at $31.77. Shares in Perpetual have been sold-down after hitting an intra-day high of $32.38 earlier. The Perpetual share price is still trading more than 22% lower for 2020.

More reading

• Why Bubs, PointsBet, Perpetual, & Waypoint shares are dropping lower
• ASX 200 rises 0.3%, Perpetual reveals large US acquisition
• Perpetual announces $465 million Barrow Hanley acquisition

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. 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 Perpetual share price gets a boost from full year results appeared first on Motley Fool Australia.

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

The Medibank Private Ltd (ASX: MPL) share price has tumbled today after the company reported its 2020 full-year results for the 2020 financial year (FY2020). At the time of writing, Medibank shares are down 3.50% to $2.76 after closing at $2.86 yesterday.

What did Medibank report for FY20 today?

The coronavirus pandemic has hit the company hard.

Medibank reported total revenue from ordinary activities of $6.785 billion, down 6% from FY19’s $7.219 billion. Premium revenues actually increased by 1.3% to $6.546 billion. But insurance claims increased by 3.2% and as a result, health insurance profits fell to $470.6 million.

Overall, net profit after tax (NPAT) fell 31.3% to $315.6 million, down from $458.7 million in FY19.

Earnings per share also fell 31.3% from the 16.7 cents in FY2019 to 11.4 cents in FY20. The company noted that the decision to postpone the 3.27% annual premium increase for policyholders (as well as other coronavirus-related hardship measures) has cost it around $80 million. 

The company also told investors that the expected savings from the pause in elective surgery that was a consequence of the pandemic have not materialised. Here’s what Medibank CEO Craig Drummond had to say on this matter:

While significant savings were projected by some commentators at the beginning of the crisis, this has not eventuated. The industry regulator APRA has said the vast majority of surgeries and extras services disrupted through COVID-19 will ultimately take place. In preparation for this, we have accrued a $297 million balance sheet liability.

What about dividends?

Medibank also announced a final, fully franked dividend of 6.3 cents per share to be paid on 24 September. This is down 14% from FY19’s final dividend but brings the total level of dividends paid in FY20 to 12 cents per share. That’s an 8.4% decrease from the 13.1 cents per share the company paid out in FY19. It also represents a payout ratio of 90% of earnings, up from FY19’s 80%. Medibank noted that its annual target payout ratio is normally 75–85% of earnings, but clearly, the company decided that the circumstances that 2020 has brought warranted the highest payout possible.

In a spot of good news, Medibank also reported that its market share of the Australian private health insurance market has grown by 4 basis points over the year. It now stands at 26.9% of the overall market as of 30 June 2020. That number includes both the Medibank and AHM brands that Medibank owns.

Medibank gets a new chair

In other news, Medibank also announced the retirement of its current chair Elizabeth Alexander. Ms Alexander will retire from the board at the end of September and will be replaced by Mike Wilkins. Recently, Mr Wilkins had stepped in as acting CEO of the embattled AMP Limited (ASX: AMP). That was after the wealth manager was engulfed in the scandals that arose from the 2018 banking royal commission. But now he is set to join Medibank as chair when Ms Alexander steps down.

Overall, it isn’t a great day to be a Medibank shareholder. The Medibank share price is down more than 18% over the past year and is less than 13% off of the 52-week low of $2.45 that the company hit back in April today.

More reading

• Leading brokers name 3 ASX shares to sell today

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. 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 Medibank share price slumps after profits plunge 30% appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3274Vp4

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.

Panasonic (OTC: PCRFY) will be investing over $100 million in Tesla‘s (NASDAQ: TSLA) Gigafactory 1 plant in Nevada to boost battery production capacity by 10% to 39 gigawatt-hours (GWh) per year.

The factory is part of Tesla’s critical infrastructure producing electric motors and battery packs for the Model 3 and Model Y electric vehicles. While both companies have wanted to boost production for some time, their relationship has at times been strained, though higher Tesla sales seems to have cleared that up.

On the road to expansion

According to Nikkei Asian Review, Panasonic will add one more production line to the 13 already operating at the factory, which currently produces 35 GWh of lithium-ion battery cells per year.

The two companies have wanted to boost production to as high as 54 GWh annually, but in April 2019, Panasonic said it first wanted to see if demand for electric vehicles warranted new investments.

Tesla is Panasonic’s largest battery cell customer, but it also acquired Maxwell Technologies last year to help make more efficient batteries, and CEO Elon Musk rankled Panasonic by tweeting Model 3 production was being held up by constraints in its partner’s battery output.

A recent Science Channel video indicated the Gigafactory was producing 13 million lithium-ion battery cells a day, which suggests 80 gigawatt hours a year, but Panasonic denies it’s producing so much and Musk’s earlier tweet would also suggest otherwise.

Panasonic invested $1.6 billion in the advanced battery factory for it to achieve the 35 GWh of battery cell production capacity. With Tesla now on track to produce 1 million electric vehicles or more a year next year, boosting battery production at Gigafactory 1 now makes sense. 

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

More reading

• Sorry, cheap stocks aren’t the best stocks. Here’s why
• Here are the top 5 US shares ASX investors have been buying
• These soaring tech shares are making savvy investors rich
• Stock split watch: Could Amazon be next?
• ASX investors have been buying these international shares

Rich Duprey 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 Tesla. 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 Tesla Gigafactory 1 to boost battery production capacity 10% after new $100 million panasonic investment appeared first on Motley Fool Australia.

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

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

The Genesis Energy Ltd (ASX: GNE) share price is on the move today, after the New Zealand energy company reported strong FY2020 results. The Genesis share price is currently up by 3.09% to $2.67 at the time of writing.

How did Genesis perform in FY 2020?

Genesis delivered earnings of $356 million despite challenging market conditions due to the pandemic. This represented a 4% decrease on earnings in FY 19. Throughout the year, Genesis flexed its portfolio of fuels and generation assets to ensure a solid result during a year of exceptionally dry North Island conditions. 

Genesis Energy today announced that it delivered net profit after tax of $46 million, with underlying earnings of $53 million. This represented a 22% and 17% decline, respectively.

Retail was the best performing segment as Genesis continued its momentum from the first half, backed by increased uptake of digital products and promotions. Examples of this include its Power Shout product, which saw a record 141,000 customers participate in May. Genesis now has 121,000 dual fuel customers, an increase of 3%. In contrast, the wholesale segment underperformed. It was impacted by the dry conditions lowering renewable generation and replacing it with thermal generation at higher fuel costs.

As such, hydro generation fell by 491 GWh versus the year prior. This means that Huntly Power Station’s back-up generation was called upon more regularly to stabilise wholesale electricity prices for Genesis’s customers, incurring higher costs for the company.

The company was happy as its “business strategy has been thoroughly stress tested this year and has performed under the challenging conditions.”

Final dividend and a dividend reinvestment plan

The Genesis board has declared a final dividend of 8.675 cents per share. This means that the total FY20 dividend comes in at 17.20 cents per share, a 1% increase over FY19. The company is continuing to offer its dividend reinvestment program, which offers shareholders a 2.5% discount.

FY21 guidance and Genesis share price

Genesis continues to target the strategic goal of $400+ million EBITDAF in FY21. As such, the company’s guidance is $395 million to $415 million. This is, of course, subject to hydrological conditions and any other unforeseen circumstances. In terms of capital expenditure, the company noted that it may spend up to $95 million, well above its long run target of between $50 to $70 million.

The Genesis share price is up by more than 3% today, but remains 14.92% down on this time last year.

More reading

• Perpetual share price gets a boost from full year results
• Medibank share price slumps after profits plunge 30%
• Tesla Gigafactory 1 to boost battery production capacity 10% after new $100 million panasonic investment
• Coca Cola share price on the rise, despite mixed earnings report
• Spirit Telecom share price soars 7% on capital raising and acquisition news

Motley Fool contributor Daniel Ewing 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 Genesis share price rises on solid FY 2020 results appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2CGob3Q

 The Coca Cola Amatil Ltd (ASX: CCL) share price is moving higher today, despite the bottling company reporting drops in revenue, earnings and profits and a dividend cut in its half-year (1H20) result this morning. The Coca Cola share price started the day at $8.75 at market open and is up 4.57% at the time of writing to $9.15.

What did Coca Cola Amatil report this morning?

Coca Cola reported a 9.2% drop in revenue to $2.186 billion, down from $2.406 billion in 1H19.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at $370.5 million, down 19.4% from 1H19’s $459.7 million.

Meanwhile, ongoing net profit after tax (NPAT) also slumped, down 35.3% to $112.1 million from 1H19’s $173.3 million.

Amatil reported a statutory loss of $8.7 million (down from a profit of $168 million) after accounting for a write down in the value of its Fijian, Indonesian and Samoan assets.

Pleasingly for shareholders, an unfranked interim dividend of 9 cents per share was announced. It’s a long way from the company’s final dividend of 26 cents per share that was paid in February, but something is better than nothing. Amatil’s Managing Director Alison Watkins had this to say on the dividend: “We recognise the importance of dividends to our shareholders. We will continue to monitor market dynamics and intend to resume a higher dividend payout ratio as soon as possible”

Coca Cola Amatil hit by a perfect storm

The company has been hard hit by both the destructive bushfire season last summer, as well as the coronavirus pandemic and associated lockdowns earlier this year (and ongoing in Victoria). Both of these events have squeezed Coca Cola Amatil’s high margin distribution channels such as restaurants and events. This has resulted in an increase in lower margin ‘grocery’ sales. This is reflected in the company’s Australian market earnings (EBIT) margin, which fell from 12.9% in 1H19 to 9.2% in 1H20.

Overall, volumes of non-alcoholic ready to drink beverages fell 8% from 146.4 million cases in 1H19 to 134.7 million in 1H20. One bright spot was the company’s spirits division, which increased volumes by 10.8%.

Here’s some of what Amatil’s Managing Director, Alison Watkins, had to say on the numbers:

We experienced unique, market-wide challenges this half, ranging from Australian bushfires and Indonesian floods through to the COVID-19 pandemic which impacted all our businesses…

Our revenue broadly declined in line with volume, however, the impact on our group margin percentages was much greater (particularly in Australia), reflecting the compound impact of reduced volumes and marked shifts in channel and pack mix as consumers adapted to the COVID-19 restrictions.

Today’s results will be of little relief for Amatil shareholders. The Coca Cola share price has essentially gone nowhere since 2014, and remains around 40% off of the company’s all-time high share price of $15.24 that it hit back in March 2013 (7½ long years ago). The Coca Cola share price has also lagged the gains of the broader S&P/ASX 200 Index (ASX: XJO), which has recovered more than 34% since 23 March. Coca Cola shares are only up 13% over the same period.

More reading

• Why the Coca-Cola share price and these ASX stocks just got upgraded by brokers to “buy”
• Why Coca-Cola Amatil, REA Group, Redbubble, & Sezzle shares are storming higher
• Earnings preview: What to expect from the Coca-Cola Amatil half year result
• Top brokers name 3 ASX shares to buy next week
• ASX 200 rises 0.3%, investors bet on Tabcorp

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. 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 Coca Cola share price on the rise, despite mixed earnings report appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3l0cq9R

The Spirit Telecom Ltd (ASX: ST1) share price has surged 7.3% today following the announcement of a capital raise and acquisition. The news comes on the back of the company’s release of record FY20 results earlier this week. 

Capital raise and acquisition

Spirit Telecom is seeking $23.2 million in a capital raise to provide immediate geographic expansion. The tele-communications company wants to do this through the simultaneous strategic acquisition of three IT managed service providers across Sydney Metro and Central NSW.

The three businesses bring strong intellectual property, products and engineering skills and generate $12 million in combined revenue. More than 60% of revenue is recurring and earnings before interest, taxation, depreciation and amortisation (EBITDA) is $2.5 million. 

Furthermore, the IT companies acquired will be re-branded as Spirit Solutions Partners. 

Spirit Telecom is seeking to disrupt the major telecommunications companies in addition to the major expansion plans. Funds raised will be allocated to further acquisition opportunities, to accelerate the development of the cloud product range in the Spirit X Digital sales platform, and to market the Spirit brand and products nationally. 

Record results for FY20

Spirit Telecom announced record FY20 results with revenue up 100% to $34.9 million resulting in a ‘transformative’ year for the company. Recurring revenue growth was up 48% to $23.5 million and solutions and projects revenue up to $11.4 million.

Underlying EBITDA surged 88% to $3.73 million which was at the upper end of the guidance range.  

The company has a healthy balance with $14 million of cash and available debt at end of FY20 with a $6 million drawdown. 

Spirit Telecom managing director  Sol Lukatsky was pleased with the result, saying FY20 had been a year of “phenomenal growth and transformation”.

Mr Lukatsky said:

The July trading update shows we’re off with a fast start to FY21 and we continue to pursue an aggressive growth agenda both organically and via a range of acquisition options.

In FY21 our priority is to bring our entire cloud and IT offering onto our digital sales platform, Spirit X, and expand our wholesaler dealer network – creating an even stronger engine for organic growth. We’ll continue with our disciplined M&A strategy, to find right-price, right-fit businesses that support the expansion strategy, as well as continuing to focus on integration and optimising growth synergies.

What’s ahead for the Spirit Telecom share price?

It has been a fast start in FY21, which bodes well for the Spirit Telecom share price.

July new sales of $2.3 million were up 165% month on month from June FY20 to July FY21. Sales were bolstered by the recent acquisition of Gold Coast-based Voice Print Data Group (VPD). Organic demand for Spirit products is also driving the growth.

More reading

• Coca Cola share price on the rise, despite mixed earnings report
• Why CSL, Iress, Santos, & Webjet shares are dropping lower
• After the stellar COVID-19 rebound, can ASX share prices keep rising?
• Pacific Smiles share price jumps 10% on FY20 results
• Iress share price dives 6% on half-year results

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SPIRIT TC FPO. 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 Spirit Telecom share price soars 7% on capital raising and acquisition news appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gf2VzQ

In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. The benchmark index is down 0.9% to 6,112.2 points.

Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:

The CSL Limited (ASX: CSL) share price is down 3% to $302.12. This decline may have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded CSL’s shares to a neutral rating with reduced price target of $320.00. The broker made the move following the release of the biotherapeutics company’s full year results on Wednesday.

The Iress Ltd (ASX: IRE) share price is down 5% to $10.67. This follows the release of the financial technology company’s half year results this morning. Although IRESS reported a 12% increase in revenue, it posted a disappointing 14% decline in net profit for the half.

The Santos Ltd (ASX: STO) share price has fallen 4% to $5.63. Investors have been hitting the sell button after the energy producer’s half year results disappointed. Santos posted a 16% decline in sales revenue to US$1.7 billion for the half. Things were much worse on the bottom line, where the company recorded a loss of US$289 million. And while Santos will pay an interim dividend, it is down 65% on the prior corresponding period to 2.1 U.S. cents.

The Webjet Limited (ASX: WEB) share price is sinking notably lower today after the release of its full year results. In FY 2020 the online travel agent posted a 27% decline in revenue to $266.1 million and a massive statutory net loss after tax of $143.6 million. This statutory result includes one-off items totalling $117.7 million. These include $40 million debtor write-offs, $14.6 million associated with the closure of Webjet Exclusives, and a $20 million impairment of intangibles from the closure of Online Republic Cruise.

More reading

• After the stellar COVID-19 rebound, can ASX share prices keep rising?
• Iress share price dives 6% on half-year results
• ASX 200 down 1%: Qantas results, Afterpay hits record high, Webjet crashes lower
• Sonic share price surges to record high as its profit results defy sceptics
• Santos share price slumps as interim dividend slashed

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended IRESS 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 Why CSL, Iress, Santos, & Webjet shares are dropping lower appeared first on Motley Fool Australia.

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