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Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are continuing to be sold off on Tuesday after the horror day we saw yesterday for this ASX 200 bank share. The Bendigo Bank share price has slumped another painful 4.55% at the time of writing to $9.43 a share.

After the 8.35% loss we saw yesterday, Bendigo Bank shares have now lost a depressing 12% or so over just this week (and it’s only Tuesday). The catalyst for these falls was, of course, the full-year earnings report for FY 2022 that the bank dropped yesterday.

As we covered at the time, Bendigo Bank reported a 6.9% drop in statutory net profit after tax (NPAT) to $488.1 million. However, cash earnings after tax rose by 9.4% to $500.4 million, while total income was bumped by 0.4% to $1,709.9 million.

Bendigo Bank declared a fully franked final dividend of 26.5 cents per share. That’s the same as last year’s final dividend.

But clearly, investors haven’t been too impressed with what this ASX 200 bank share reported yesterday.

However, after these steep share price losses this week, could this be a buying opportunity for Bendigo Bank shares?

Broker’s thoughts on the Bendigo Bank share price

Well, one ASX broker isn’t as bullish as it was before these earnings came out. As my Fool colleague James covered earlier this month, ASX broker Goldman Sachs had a ‘buy’ rating on Bendigo Bank shares, with a 12-month share price target of $11.89 a share.

At the time, Goldman stated that Bendigo Bank “provides the best exposure of the banks to rising rates, given its overall higher exposure to deposit funding, and higher exposure to rate inert deposits”.

It also stated that:

Furthermore, we highlight that to date, BEN has exhibited better discipline than its regional peers on deposit repricing in the face of higher cash rates, which should also support its NIM performance.

Our assessment of mid-cycle losses has BEN’s exposures as one of the most conservative of the banks we cover, with an estimated over-the-cycle loss rate of just 15 bp, versus 22 bp on average for the major banks. This leaves it well-placed should the macro environment deteriorate more than what is currently implied by our forecasts.

However, yesterday’s earnings seem to have dented Goldman’s opinions. As we covered this morning, Goldman has come out and downgraded its 12-month share price target to $10.60. Even so, that still represents an upside of around 12% from the current share price.

At the current Bendigo and Adelaide Bank share price, this ASX 200 bank share has a market capitalisation of $5.36 billion, with a dividend yield of 5.6%.

The post Is the Bendigo Bank share price in the buy zone following Monday’s sell-off? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. 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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The Seven West Media Ltd (ASX: SWM) share price is plummeting on Tuesday despite the release of what the company’s management called its “strongest financial performance … in over a decade”.

As The Motley Fool Australia reported earlier, the media group posted a 60% increase in underlying after-tax profit – coming to around $201 million – for financial year 2022 and announced an on-market share buyback this morning.

At the time of writing, the Seven West share price is 48 cents, 5.77% lower than its previous close.

Let’s take a closer look at today’s news from the All Ordinaries Index (ASX: XAO) stock.

Seven West share price plunges on full year earnings

The Seven West share price is tumbling following the release of the company’s full year earnings and news of an on-market buyback aiming to snap up 10% of its outstanding stock.

The company clocked a 21% improvement in revenue – lifting to $342 million – and a 35% lift in earnings before interest, tax, depreciation, and amortisation (EBITDA), which came in above guidance at $1.5 billion.

On top of that, its operating costs amounted to nearly $1.2 billion, which was within its guided range, while its net debt deepened to $256.5 million.

Seven West managing director and CEO James Warburton celebrated the company’s financial performance, saying:

These results represent the best Seven television EBITDA results in 11 years, the best EBITDA from West Australian Newspapers in five years, and our best group EBITDA result in six years.

Perhaps it’s the company’s outlook that’s weighing on its stock on Tuesday.

Seven West expects its total TV advertising market to fall this quarter, mainly due to the impact of the Tokyo Olympic Games, broadcast on the company’s free-to-air network last year.

It also predicts its share of total TV revenue will stay flat at 39% this financial year while its operating costs are tipped to come in slightly higher at between $1.2 billion and $1.22 billion.

Today’s fall included, the Seven West share price is trading 22% lower than it was at the start of 2022. Though, it’s still 2% higher than it was this time last year.

The post Seven West Media share price tumbles 5% on full-year earnings appeared first on The Motley Fool Australia.

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More reading

• Seven West Media share price in focus following best financial performance in a decade

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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

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

If you want to find the next great online retailer, you may want to pack a passport. Coupang Inc. (NYSE: CPNG) shares have started to spring back to life, and the South Korean e-tailer is growing faster and doing a few things better than the mighty Amazon.com (NASDAQ: AMZN). We saw that on public display last week with Coupang reporting healthy financial results and raising its guidance. 

Coupang stock has generally been sliding since peaking at $69 on its first day of trading in the springtime of last year, and it isn’t close to setting a new high-water mark anytime soon. However, with the online retailer now more than doubling after bottoming out in the single digits three months ago — up 110% through Friday’s close — it’s a good time to take a fresh look at a promising player trading below last year’s $35 IPO price tag. 

Time is on its side

Net revenue rose 12% to hit $5.04 billion for the three months ending in June. This is roughly in line with expectations, but keep in mind that this is reported revenue for U.S. investors in a climate where the dollar has been rising. Coupang’s top line actually rose 27% on a constant currency basis. The news gets better, as margins improved to the point where it posted a much smaller loss than analysts were targeting. After several periods of bloated deficits, Coupang has now rattled off back-to-back quarters of dramatically less red ink than what Wall Street was expecting.

Coupang also surprised the market by posting its first quarter of positive adjusted EBITDA. The welcome milestone finds the e-tailer now eyeing positive adjusted EBITDA for all of 2022. It was modeling a $400 million deficit on that front earlier this year.  

Coupang hit the market with a model that should make the Amazon boardroom envious. With 100 fulfillment centers across South Korea, it’s within 7 miles of 70% of the country’s population. This gives it a robust moat. Its fleet of drivers get going early. If you place a grocery or merchandise order before midnight, it should be at your door by 7 a.m. the next morning. If you have something you need to return, just leave it outside and let Coupang know. A driver will pick it up the next day. 

It’s not just convenience that finds Coupang raising the bar with what even Amazon can’t match in terms of service closer to home. Coupang is also growing a lot faster than Amazon. 

Period	Amazon	Coupang
FY 2019	21%	51%
FY 2020	28%	91%
Q1 2021	44%	74%
Q2 2021	27%	71%
Q3 2021	15%	48%
Q4 2021	9%	34%
Q1 2022	7%	22%
Q2 2022	7%	12%

Data sources: Amazon and Coupang.

Coupang has routinely been growing revenue two to three times faster than Amazon, and that also holds true for each company’s latest report if you go with the 27% year-over-year revenue increase for Coupang on a constant currency basis. This makes sense. Coupang is much earlier in its growth cycle, even though it’s well entrenched with its market share stronghold in South Korea. 

Growth has certainly slowed at Coupang. This is the sixth consecutive quarter of sharply decelerating growth on a reported basis. This is also the case for the top-line gains on a constant currency basis, as it was a 32% gain for Coupang in South Korea for the first quarter.

The stock has already more than doubled off its springtime low, but it’s still fetching a little more than half of its IPO price. With Coupang continuing to dominate its market — and now improving on the bottom line — it’s one of the more interesting internet retail stocks today. Don’t be afraid of getting your portfolio’s passport stamped. There’s a world of opportunity out there.

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

The post This stock is beating amazon at its own game appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rick Munarriz has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Coupang, Inc. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The SG Fleet Group Limited (ASX: SGF) share price is pushing higher this morning amid the company releasing an upbeat earnings report for FY22.

Shares in the vehicle fleet management provider are trading for $2.80 each at the time of writing, a gain of 2.19%. For comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.65% higher.

SG Fleet recorded significant top and bottom line growth across all its operating segments in Australia and overseas.

Let’s check the highlights of the company’s results.

What did SG Fleet report?

• Total net revenue up 58% on FY21 to $313 million
• Net profit after tax (NPAT) up 39% on FY21 to $60.7 million
• Underlying earnings per share (EPS) up 12.4% on FY21 to 21.50 cents
• Fully franked final dividend of 6.81 cents a share
• Total FY22 dividend up 20.2% on FY21 to 15.13 cents per share

Revenues and profitability increased following a surge in demand post-COVID. The company’s order books are currently backlogged and it’s expected to work through them in FY23.

SG Fleet also provided an update on its LeasePlan acquisition, noting that it was “on track,” with the company exploring additional avenues to accelerate its incorporation. 58,857 vehicles were added to the company’s fleet courtesy of LeasePlan, bringing its total to 145,351 vehicles in FY22.

It also noted an uptick in interest for its electric vehicles and decarbonisation efforts with continued enthusiasm from its clients.

What else happened in FY22?

SG Fleet reported top-line growth in all its operating segments across Australia, New Zealand, the United Kingdom, and corporate. The largest increase was reported in the New Zealand operating segment, with revenues jumping from $13.26 million in FY21 to $122.26 million for an 821.37% boost in FY22.

The growth of the New Zealand operating segment was buoyed by a rebound in demand after COVID-19 and by adding and retaining new corporate and business accounts, particularly with small and medium-sized enterprises.

An increase in bottom line earnings before interest, taxes, depreciation, and amortization (EBITDA) was also consistent across the board. Australian earnings increased 22.93% to $72.39 million in FY22.

What did management say?

SG Fleet Chief Executive Officer Robbie Blau commented on the company’s performance in FY22, stating:

All of our businesses have maintained the momentum built up early on in the COVID-19 period. While the Corporate channels have been performing well throughout, we are now also seeing further growth in enquiry levels in the Novated channel. Across all of the Company’s geographies, the Corporate and the Novated channels continued to face the challenge of delivering what remained limited supply against a growing order pipeline.

What’s next?

Global macro headwinds are expected to batter the company’s stock for at least the next twelve months.

SG Fleet stated that a mix of inflation and cost trends “suggest a permanent lift” in the price of used vehicles, which the company relies on for its fleet.

Further headwinds include a difficult supply environment that is not expected to resolve in the next 12 months.

As a result, the delivery of orders is being pushed out. The company cited the war in Ukraine and high demand as causing delays and leading to a significant order backlog.

SG Fleet share price snapshot

The SG Fleet share price is currently up 12% year to date. That’s a better performance than the benchmark index which is down 6% over the same period.

At the current share price, SG Fleet has a market capitalisation of around $957 million.

The post SG Fleet share price rises on FY22 earnings increase appeared first on The Motley Fool Australia.

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The 4DS Memory Ltd (ASX: 4DS) share price is in free fall, down 65% at the time of writing.

The ASX tech share fell 76% lower to 2.2 cents shortly after the market open and is now trading at 3.2 cents.

4DS, which is focused on the development of non-volatile memory technology, went into a trading halt yesterday at its own request. The company said it would release an announcement “regarding a technical update based on the initial analysis of the wafers received”.

That announcement was released just after the market open today.

As you can likely guess by the plunging 4DS Memory share price, the wafer analysis wasn’t what was hoped for.

Unexpected problems send investors running

The update this morning revealed the initial internal analysis of the company’s Third Platform Lot.

For some technical background, the company’s stated objective is “to develop an Interface Switching ReRAM specifically developed for Storage Class Memory applications that has DRAM-like read speed, has lower than DRAM cost per bit and is non-volatile”.

Commencing in 2021, 4DS Memory undertook several iterations on Non-Platform Lots and Platform Lots. It concluded that the Interface Switching ReRAM displayed characteristics that may be applicable to Storage Class Memory.

The 4DS Memory share price had some big moves up and down during that time as investors digested the commercial potential of the technology.

On 11 April, the company reported that, “The final verification of the efficacy of these process improvements requires electrical testing, which can only be performed on this Third Platform Lot.”

Today, 4DS Memory announced that, “Testing of the memory cells used in the imec megabit memory array showed unexpected problems with scaling the memory cell to small dimensions suitable for Storage Class Memory potential applications.”

The company is conducting further testing but said the primary goal of its Third Platform Lot can’t be successfully completed until this issue is resolved.

Managing director departs

4DS managing director Ken Hurley will leave his position immediately.

In its statement, 4DS said this was a prudent mutual decision to “conserve the Company’s existing cash reserves”.

The 4DS board said:

Ken was engaged for the specific purpose of leading the Company’s commercialization effort, but due to the delays foreshadowed above, the Company believes that his expertise would be more useful to the Company once the Company is further developed in the commercialisation of its technology.

4DS Memory share price snapshot

The 4DS Memory share price was outpacing the benchmark this year, right up until it started trading today.

With today’s big losses factored in, 4DS Memory shares are down 63% year-to-date.

This compares to a 2022 loss of 7% posted by the All Ordinaries Index (ASX: XAO).

The post The 4DS Memory share price just crashed 65%. What happened? appeared first on The Motley Fool Australia.

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More reading

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• Why is the Zip share price tumbling 6% on Tuesday?
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• Seek share price slides despite NPAT soaring 81%

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Zip Co Ltd (ASX: ZIP) share price is having a rough time today. It’s down around 6% in what’s proving to be a difficult day for some businesses in the buy now, pay later (BNPL) sector.

This comes on a day when, at the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up 0.6%.

One of the main things that Zip investors may be focusing on is that the Sezzle Inc (ASX: SZL) share price is currently down by around 10%.

For investors that haven’t seen, Sezzle has reported its FY22 half-year result to investors.

While Sezzle and Zip are different businesses, they operate in the same industry and investors may be able to make comparisons and assumptions.

What did Sezzle report?

There were a number of different things that Sezzle said.

It said that underlying merchant sales (UMS) grew by 10.6% to US$869.6 million, active merchants increased 18.1% to 47,642, active consumers increased 18.2% to 3.4 million, repeat usage improved 193 basis points to 93.50% and total income rose 6.5% to US$56.9 million.

In the second quarter of 2022, the business ceased payment processing activities in India. It’s also exploring the potential sale of its European and Brazilian operations.

The company pointed out that its operations depend on consumers transacting with merchants, which in turn can be affected by changes in general economic conditions.

It noted that the retail sector could be affected by factors like unemployment, interest rates, consumer confidence, economic recessions, downturns or extended period of uncertainty or volatility.

Sezzle also pointed out:

In weaker economic environments, consumers may have less disposable income to spend and so may be less likely to purchase products by utilising our services and bad debts may increase as a result of consumers’ failure to repay the loans originated on the Sezzle platform. Our industry is also impacted by numerous consumer finance and protection regulations, both domestic and international, and the prospects of new regulations, and the cost to comply with such regulations, have an ongoing impact on our results of operations and financial performance.

A lot of that commentary could certainly be applicable to Zip too.

Expert thoughts

Despite reporting ongoing growth in the FY22 fourth quarter, experts are negative on the Zip share price. In that quarterly update, Zip said its quarterly revenue rose 27% year over year to $160.1 million, customers rose 64% to 12 million and merchants increased 77% to 90,700. 

The Zip cash transaction margin was 2.4%. It also said that its losses in the US and Zip were improving.

Citi rates Zip as a sell, with a price target of $0.70. It’s expecting less growth from the business.

The broker UBS also rates Zip as a sell as well with a price target of just $0.45. That implies a possible drop of 60%. 

Zip share price snapshot

Despite today’s decline, the Zip share price is up around 80% over the past month. 

The post Why is the Zip share price tumbling 6% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Betmakers Technology Group Ltd (ASX: BET) share price has fallen into the red this morning. At the time of writing, it is down 2.17% to 45 cents.

This comes after the company announced today it had amended a key contract that lifts its minimum revenue cap by $20 million over 10 years.

The betting technology provider rejigged its agreement with NTD Pty Ltd that will see the minimum cap on the annual fee it receives increased to around $100 million over the next decade.

Betmakers supports M&A of its clients

The new terms were struck as part of a deal between Betmakers and NTD for the acquisition of O’Shea Bookmaking Pty Ltd (trading as TexBet). TexBet is a long-standing client of Betmakers.

NTD will acquire TexBet and Betmakers will contribute a total of $2.5 million in two tranches towards the acquisition.

It will also help migrate customers on TexBet to the NTD platform. Betmakers will also provide supervisory support in relation to the trading until the TexBet customer base is fully migrated to the NTD platform.

In exchange, Betmakers won’t only see its minimum revenue cap with NTD lifted. It will also own the intellectual property for the betting platform technology currently owned by TexBet.

The net gaming revenue (NGR) generated from the TexBet customer base will form part of the NGR used to calculate the annual fee payable to Betmakers under today’s revised agreement.

Original agreement with NTD

Betmakers’ subsidiary, OM Apps, was awarded an exclusive agreement with NTD in April this year for a new wagering venture.

The original agreement included minimum revenues of circa $80 million to Betmakers over the 10-year contract. The maximum revenue to Betmakers stands at more than $300 million.

Betmakers will also be paid a platform establishment fee of $2 million. The original agreement also provides it with a launch development fee of $500,000 a month between signing and the go-live date (expected to be October this year).

Betmakers share price snapshot

The Betmakers share price has fallen 62% over the past year and 45% this year to date, but at least it isn’t alone. Other gaming shares have also fared badly. The Pointsbet Holdings Ltd (ASX: PBH) share price has fallen by 60% over the past 12 months and 42% so far in 2022.

The post Betmakers share price slips despite new $20 million deal appeared first on The Motley Fool Australia.

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More reading

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• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Pointsbet Holdings Ltd. 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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The Tassal Group Limited (ASX: TGR) share price is in the green after the company entered a takeover agreement and released its financial year 2022 results.

The salmon farming stock is surging 5.21% to trade at $5.145 on this eventful morning.

Tassal share price soars on takeover agreement

Salmon farmer Tassal – worth $1 billion as of Monday’s close – has entered a takeover agreement wherein investors will receive $5.23 per share held in the ASX-listed company, assuming no final dividend is paid.

It’s set to be snapped up by Canadian seafood company Cooke Inc via a scheme of arrangement.

Cooke has previously put forward three unsuccessful bids for the company. The third – worth $4.85 per share – was rejected by Tassal’s board in June.

The latest offer implies an equity value of approximately $1.1 billion and an enterprise value of $1.7 billion.

It also represents a 49% premium to the Tassal share price as of 22 June, being the last trading day prior to reports an entity affiliated with Cooke had acquired a stake in Tassal.

Shareholders are expected to vote on the takeover in November.

Cooke already owns a 10.5% stake in Tassal. However, it won’t be allowed to vote at the scheme meeting.

The takeover is also subject to regulatory and court approvals, as well as an independent expert finding it’s in the best interests of shareholders.

The company predicts it will be implemented before the end of 2022.

Tassal reports 60% lift in after-tax profits

The Tassal share price is likely also being boosted by the company’s financial year 2022 earnings, released this morning. Here are the highlights:

• $788.7 million of revenue – a 32.8% increase on that of the prior corresponding period (pcp)
• Net profit after tax (NPAT) came to $55.3 million – a 59.9% improvement
• Earnings before interest, tax, depreciation, and amortisation (EBTIDA) reached $162.6 million – a 35.7% lift
• Operating cash flow lifted 127.8% to $139 million
• Free cash flow increased 223.6% to $95.4 million

The company is now producing around 40,000 tonnes of salmon each year while its investment in prawns is delivering strong results. It delivered around 5,700 tonnes of prawns over the period.

Salmon prices also experienced a strong re-rating last financial year, with prices ending the year at around $23 per kilogram, having started at approximately $12 a kilogram.

What else happened in FY22?

Last financial year 2022 was a good one for the Tassal share price. It gained around 36% over the 12 months ended 30 June, mostly on the back of Cooke’s third unsuccessful bid.

The company’s short position also dropped notably over the period. After starting the financial year with 7.75% of its shares in the hand of short sellers, it ended it with a short position of just 1.55%.

What did management say?

Tassal managing director and CEO Mark Ryan commented on the company’s results, saying:

It is pleasing to see our strategy translate into strong growth for our people, customers, and shareholders, with the business now generating strong cashflow growth.

On the back of the investment made, Tassal delivered a step change in cash generation in FY22, with attractive domestic industry dynamics and strong global supply-demand fundamentals underpinning strong pricing outcomes in the salmon and prawn markets.

What’s next?

The company didn’t provide any earnings guidance in today’s release.

However, it did note its salmon production is now at scale, but it can expand its prawn production to drive medium to long-term growth.

Tassal share price snapshot

It’s been a good year so far for the Tassal share price.

It’s gained 48% since the start of 2022 and 47% since this time last year.

Meanwhile, the All Ordinaries Index (ASX: XAO) has slumped 7% year to date and 6% over the last 12 months.

The post Tassal share price surges 5% on $1.7b takeover bid and full year earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Seek Limited (ASX: SEK) share price is heading south today after the company dropped its full-year results.

At the time of writing, the job listings giant’s shares are down 0.45% to $24.24.

The share price fell as low as $23.67 shortly after the market open but has recovered somewhat now.

Seek share price falters despite double-digit growth

This morning, Seek delivered its FY 2022 results for the 12 months ending 30 June 2022.

Here are some of the key takeaways:

• Sales revenue from continuing operations up 47% on the prior corresponding period (pcp) to $1,116.5 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 53% to $509.1 million
• Net profit after tax (NPAT) excluding significant items up 81% to $245.5 million
• Final dividend of 21 cents a share, fully franked.

What happened in FY 2022?

Seek achieved record ad volumes of 325,000 in March 2022 across Australia and New Zealand. This was underpinned by a tight employment market which drove high levels of activity.

The average ad yield grew 11% over the pcp, attributed evenly through higher prices, customer mix, and increased depth adoption.

In Asia, volumes grew across all markets despite some ongoing lockdowns from COVID-19. The average ad yield fell 1% compared to FY 2021 on the back of advertisers purchasing larger packages resulting in higher volume-based discounts.

However, this was largely offset by an increase in depth adoption with growth in branded ads and strong take-up of the new premium ad. Bundling of ad products also made it easier for advertisers to purchase depth products.

Management commentary

Seek CEO and managing director, Ian Narev, had this to say about the results:

In all our Asia Pacific markets, ongoing economic recovery drove high demand for labour, which in turn led to strong job ad volumes and increased depth adoption. Our markets continue to be highly competitive. However, SEEK maintained its market leadership positions, with stable placement metrics throughout Asia Pacific. Increased investment in Asia led to improved candidate metrics.

What’s the outlook for FY 2023?

Seek provided its FY 2023 guidance excluding significant items and the Seek Growth Fund.

This includes the following:

• Revenue in the range of $1.25 billion to $1.30 billion
• EBITDA in the range of $560 million to $590 million
• NPAT in the range of $250 million to $270 million.

Narev touched on the new financial year, concluding:

Economic and labour market conditions across our key markets remain positive, although some leading indicators look slightly weaker. Our revenue guidance for FY23 assumes a continuation of largely positive conditions.

We have assumed a low risk of job market volatility from monetary policy, geopolitical change and the pandemic. If this assumption changes, revenue could fall below guidance. Our guidance also assumes a continuation of the accelerated investment from FY22, in particular the Platform Unification program. Spend for the project will peak in FY23 as we ensure that our systems are sufficiently flexible, resilient and scalable to drive future growth.

Seek share price snapshot

The Seek share price has lost 28.7% since the beginning of 2022 but is up 3.7% in the past week.

For context, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed around 6% for the calendar year.

Seek presides a market capitalisation of approximately $8.64 billion.

The post Seek share price slides despite NPAT soaring 81% appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited. 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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Car and personal loan provider Money3 Corporation Limited (ASX: MNY) saw its share price rocket 8% in early trade on Tuesday.

The movement followed the release of its full-year financials before market open.

The company’s shares are currently fetching $2.47 each, a 7.86% gain. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.91% at the time of writing.

What did the company report?

• Revenue up 29.5% to $187.9 million
• Net profit after tax (NPAT) up 31.6% to $51.6 million
• Loan book up 22.1% from $600.9 million to $733.4 million
• Dividend up 30% to 13 cents for the year

What else happened in FY22?

Money3 started giving $15 million back to shareholders in May through an on-market stock buyback.

“The company has over 20 years’ experience lending and collecting throughout all credit cycles,” Money3 managing director Scott Baldwin said at the time.

“Given our strong financial health, together with a low level of leverage, and the lowest cost of capital the group has ever had, we believe implementing a buyback is the most appropriate capital management strategy at this time.”

What did management say?

Baldwin said Tuesday upon revealing the full-year results:

The momentum of new lending across the group is strong, with current monthly origination volumes enabling the group to target its loan book reaching $1.0 billion in 2023, with the management team now focused on initiatives to achieve its mid-term aspiration of a $3.0 billion loan book, underpinned by commercial and personal loans growth over the coming years.

What’s next?

Other than indicating that all business units would produce “record results” again for the 2023 financial year, Money3 declined to give future guidance. 

The board has promised its outlook at the annual general meeting in November.

Money3 share price snapshot

The financial services provider is one of those rare small-cap ASX shares that provides a chunky dividend income.

The dividend yield currently stands at 5.4%.

However, like most small caps, the Money3 share price has taken a hammering in 2022. It has dropped nearly 32% year-to-date.

The post Money3 share price rockets after ‘record breaking’ results appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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