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The Federal Court has ordered subsidiaries of Westpac Banking Corp (ASX: WBC) to pay a total of $10.5 million in fines.

The penalty was determined after the High Court decided in February that Westpac Securities and BT Funds had failed to act in the best interests of their customers.

The judgment found that the businesses provided personal financial product advice to 14 clients, even though neither brand was licensed to do so.

According to Australian Securities and Investments Commission commissioner Danielle Press, Westpac was caught “actively conducting” a campaign to bring over clients into the bank’s superannuation products.

“In doing this, Westpac failed to act in the best interests of their customers,” she said.

“Consumers’ decisions about their superannuation are significant long-term financial decisions affecting their retirement income. Financial institutions seeking to influence those decisions by providing financial product advice must comply with the law designed to protect consumers.”

Westpac cops $750,000 penalty per customer

The massive total fine amounts to $750,000 for each wronged customer.

“The penalty of $10.5 million handed down related to calls made to just 14 consumers and should act as a strong deterrent to any entity breaching these provisions of the law,” said Press.

Both Westpac Securities and BT Funds attempted to convert clients via telephone sales campaigns.

ASIC found that the drive resulted in Westpac businesses increasing their funds under management by almost $650 million between 1 January 2013 and 16 September 2016. More than 30,000 customers deposited funds into Westpac super products over that time.

Federal Court justice Michael O’Bryan has not yet published the full reasoning for the penalties handed down to Westpac.

Westpac shares were up 0.43% on Tuesday morning, trading at $25.89. They’ve gained more than 31% this year.

In December 2018, the Federal Court found the Westpac subsidiaries breached their obligations to act honestly and fairly but disagreed that the provided advice was personal.

But, in October 2019, the full court of the Federal Court reversed that ruling, unanimously finding the bank dished out personal advice to the 14 customers.

The post Westpac (ASX:WBC) whacked with $10.5 million penalty appeared first on The Motley Fool Australia.

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• Westpac (ASX:WBC) share price is now trading on a forecast 3.5% fully franked dividend yield
• What’s moving the ASX 200 Index (ASX:XJO) on Monday?
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• Top brokers name 3 ASX shares to buy next week

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 Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is pushing higher. The benchmark index is currently up 0.25% to 7,510.3 points.

Here’s what is happening on the ASX 200 today:

Kogan share price crashes

The Kogan.com Ltd (ASX: KGN) share price is being crushed on Tuesday following the release of its full year results. For the 12 months ended 30 June, the ecommerce company reported gross sales growth of 52.7% to $1,179 million but an 86.8% decline in net profit after tax to $3.5 million. The latter was driven by inventory issues and led to Kogan pausing its dividends. Looking ahead, July wasn’t much better, with the company reporting a small increase in gross sales and an 80% reduction in EBITDA.

Nanosonics share price rockets

The Nanosonics Ltd (ASX: NAN) share price is rocketing higher today following the release of its full year results. For the 12 months ended 30 June, the infection prevention specialist reported a 3% increase in revenue to $103.1 million and a 15% decline in net profit after tax to $8.6 million. This was better than the market was expecting and driven by a significant second half recovery. During the second half, the company’s revenue increased 39% on the first half. Looking ahead, management is guiding to double-digit revenue growth in FY 2022 if trading conditions remain consistent.

SEEK results

The SEEK Limited (ASX: SEK) share price is edging lower today after it delivered a full year result just a touch short of expectations. In FY 2021, SEEK’s revenue increased 1% to $1,591 and its EBITDA rose 15% to $474 million. The latter compares to SEEK’s guidance of $480 million and the market consensus estimate of $487 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Nanosonics share price with an 18% gain following its results release. The worst performer has been the Monadelphous Group Limited (ASX: MND) share price with a 15% decline. This morning the engineering company released its full year results and warned that FY 2022 would be challenging.

The post ASX 200 midday update: Kogan crashes, Nanosonics rockets appeared first on The Motley Fool Australia.

More reading

• FY 2021 results: Monadelphous (ASX:MND) share price crashes 14% on subdued outlook
• Nanosonics (ASX:NAN) share price soars 17% on ‘significant recovery’
• Kogan (ASX:KGN) share price sinks 8% after FY21 results and weak start to FY22
• SEEK (ASX:SEK) share price on watch as revenue falls flat
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. 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 Bruce Jackson.

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The Sonic Healthcare Limited (ASX: SHL) dividend is on the rise following a bumper full year FY21 result announced on Monday.

However, the same couldn’t be said about its shares which sold off sharply yesterday after Sonic’s results were delivered to the market.

Let’s take a look at what played out:

Sonic Healthcare share price slides on results announcement

The Sonic Healthcare share price fell flat on Monday despite revealing an 81% jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $2.6 billion and a 149% surge in net profit to $1.3 billion.

At the morning bell, Sonic Healthcare opened relatively flat, down just 0.19% to $42.75. However, significant selling pressure within the first two hours of trade drove it down 4.41% to an intraday low of $40.94.

The Sonic Healthcare share price bounced off those lows by market close, finishing the day 2.76% lower at $41.65.

Encouragingly, the company’s shares are trading higher on Tuesday, up 2.09% to $42.52 at the time of writing.

COVID-19 driving earnings

Sonic Healthcare flagged that its financial performance has been “enhanced” by its COVID-19 testing revenue.

The results flagged some recent volatility in testing revenue, with COVID-19 PCR volumes lower in the second half of the year compared to the first half.

However, it said that volumes have improved in the new financial year due to the emergence and increasing spread of the Delta variant.

The uncertainty surrounding its COVID-19 testing volumes could be a contributing factor to the selloff on Monday.

As a result, the company said that it will not provide any earnings guidance for FY22 due to the unpredictability of COVID-19.

Sonic Healthcare dividend edges higher

Sonic Healthcare declared a final dividend of 55 cents per share, franked to 65% (previously 30%).

This brings the company’s total FY21 dividend to 91 cents per share, a 7.1% increase compared to FY20.

Sonic Healthcare dividend key dates

The Sonic Healthcare share price will go ex-dividend on Tuesday, 7 September and the dividend will be paid out on Wednesday, 22 September.

The post Sonic Healthcare (ASX:SHL) dividend rises 7%, share price falls after FY21 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price has stepped into the green from the opening of trade on Tuesday.

Westpac shares are up 0.45% to $25.89 after the banking giant announced changes to its fixed and variable mortgage interest rates.

Let’s investigate further.

What did Westpac do?

In a potential impact to the Westpac share price, the bank made some tweaks to its variable and fixed interest rates as part of its home mortgage business.

To illustrate, the bank advised it will reduce its introductory variable rate by 20 basis points to 1.99%. This haircut applies to loans with a 70% loan-to-value ratio, meaning homebuyers will still need a 30% deposit upfront to qualify.

The move makes Westpac the first Australian lender to sink its variable rates below the 2% mark.

However, in what seems a balancing act, Westpac concurrently increased its fixed rates on four and five-year maturities by 30 basis points.

What does this mean for Westpac and its customers?

In its third-quarter activities report, Westpac said its organic growth in home financing was on par with the average of its peer group.

Furthermore, the moves come after the bank announced it would move 1,000 jobs back on Australian soil after Covid-19-related disruptions overseas, The Australian reported today.

Moreover, Westpac will extend the variable rate through to its other brands. For example, St George Bank and Bank of Melbourne will have the lowest two-year fixed rate of 1.79%.

Westpac is “fighting to get back” into the mortgage domain, after “ceding market share to rivals” CBA and NAB, The Australian says.

RateCity.com.au analyst Sally Tindall was quoted as saying that although the variable rate change is “reserved for new customers … that shouldn’t stop existing customers from picking up the phone and asking for a lower rate”.

Westpac share price snapshot

The Westpac share price has posted a year-to-date return of 33%. It has also fallen 51% over the past 12 months.

Over the last month, Westpac shares have climbed around 5%.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO)’s gain of around 23% over the last year.

The post Westpac (ASX:WBC) share price rises amid mortgage rate shake-up appeared first on The Motley Fool Australia.

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• ASX 200 Weekly Wrap: Miners drag ASX back to earth
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The author Zach Bristow has no positions in any of the stocks mentioned. TheMotley 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 Bruce Jackson.

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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.

What happened

Shares of electric vehicle company Tesla (NASDAQ: TSLA) jumped sharply on Monday, climbing as much as 4.5%. As of 12:30 p.m. EDT today, the stock was up 4%.

The stock’s gain was likely fueled primarily by bullish commentary from New Street analyst Pierre Ferragu. 

So what

Following Tesla’s AI Day last week, Ferragu is more confident about the company’s artificial intelligence product development, noting that the presentation made New Street more comfortable with its bullish view. More specifically, he believes the growth stock will deserve a price-to-earnings multiple of 50 to 100 in the years to come thanks to the company’s advanced technology.

Though Tesla has a P/E multiple of 373 today, analysts expect the automaker’s earnings per share to grow at an average annual compound rate of about 52% over the next five years.

The analyst has a $900 12-month price target on the stock. 

Now what

Tesla has guided for an average annual growth rate in vehicle deliveries of about 50% in the upcoming years, without specifying when it expects growth to slow. And management says it expects significant operating margin expansion. These two factors would easily lead to 50%-plus EPS growth.

If Tesla is right about its optimistic outlook and Ferragu is right about Tesla being able to command P/E ratios of 50 to 100 five to 10 years from now, then today’s prices for Tesla stock could be a good buying opportunity. But investors should keep in mind that there’s a lot that could go wrong with such bullish assumptions, from competitive challenges to potential production and supply issues and other unforeseen detours. 

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

The post Why Tesla stock jumped on Monday appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Perenti Global Ltd (ASX: PRN) share price is tumbling in intraday trade on Tuesday, down 9% at the time of writing.

This comes as the ASX mining services company released its results for the financial year ending 30 June (FY21) this morning.

Perenti share price slides following FY21 results

Here are the highlights of what the company reported:

• Revenue of $2.02 billion, compared to $2.04 billion in FY20
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $380.0 million, down from $443.8 million the previous year
• Net profit after taxes (NPAT) of $77 million, down from $110 million in FY20
• Final dividend of 2.0 cents per share (cps), unfranked, bringing FY21 total dividend to 5.5 cps

(*Note, the above results are all underlying)

What happened during the reporting period for Perenti?

Starting with the headwinds faced during the financial year, Perenti said it faced negative impacts from COVID-19 on its international operations. It also pointed to a tighter Australian labour market and the strengthening Australian dollar, which was 14% stronger on average in FY21 than in FY20.

Perenti said its continued focus on working capital management delivered operating cash flow (before interest and tax) of $398.9 million. That saw an improvement of its EBITDA to operating cash flow conversion to 105%, up from 96% in FY20.

The company also refinanced its US denominated high-yield bonds, with US$450 million of Guaranteed Senior Unsecured Notes issued at a lower interest rate.

As at 30 June, Perenti had available liquidity of $567.9 million, down from $605.5 million in FY20.

The dividend record date is 6 October. It will be paid on 20 October 2021.

What did management say?

Commenting on the results, Perenti’s CEO Mark Norwell said:

Our Underground business continued to be a standout performer, delivering a third consecutive year of earnings growth with a strong FY21 contribution. Impressively, this growth has been delivered in a year where we saw the slower than anticipated ramp up at several recently secured international projects due to the prolonged, and ever-changing, nature of the COVID-19 pandemic.

As expected, due to the planned contraction of our Surface Mining business following our strategic transition out of Yanfolila and Boungou, FY21 revenue, EBIT(A) and margins were softer than FY20. Pleasingly during the second half of FY21, earnings and margins generated by the Surface business more than doubled compared to the first half.

What’s next for Perenti?

A key part of the company’s growth plan is its technology driven service offering, idoba, launched in July.

Norwell said, “Through idoba we plan to improve our competitive advantage by developing a unique capability in emerging digital mining, technology and innovation.”

As at 30 June, Perenti had 3 years’ work in hand of $6.6 billion and a tender pipeline of $11.0 billion.

Based on the assumption the pandemic impacts don’t get worse, Perenti forecast FY22 revenue of $2.0-2.2 billion and EBIT(A) of $165-185 million. Those projections are also based on an Aussie dollar to green back exchange rate of 75 cents.

The Perenti share price is down 34% over the past 12 months.

The post Perenti (ASX:PRN) share price tumbles as profits take hit in FY21 appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The MNF Group Ltd (ASX: MNF) share price is rocketing higher on Tuesday following the release of its full year results.

In morning trade, the VoiP-focused technology company’s shares jumped 17% to a multi-year high of $6.76.

MNF share price rockets after beating guidance

• Recurring revenue increased 12% to $113.2 million
• Recurring gross profit up 14% to $68.1 million (total gross profit $102.2 million)
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 13% to $43.1 million (guidance: $40 million to $43 million)
• Underlying net profit after tax before amortisation up 16% to $19.2 million
• Full year dividend of 7.6 cents per share, up 25% year on year
• Balance sheet of over $100 million in cash and undrawn debt
• Outlook: No guidance but growth in July
• 2030 target of 100 million phone numbers

What happened in FY 2021 for MNF?

As you might have guessed from the MNF share price reaction today, the company was in fine form during FY 2021.

While its overall revenue declined 5% during the 12 months to $218.7 million due to lower global roaming and audio-conferencing usage, MNF continued to grow where it arguably matters most. Its high-quality recurring revenue increased 12% to $113.2 million and recurring gross profit lifted 14% to $68.1 million. The latter now makes up two-thirds of its gross profit, with management aiming to take this to 80% over the long term.

Key drivers of this growth were a 29% increase in phone numbers to 5.8 million and a Net Revenue Retention (NRR) rate across its top 10 customers of 115%. This means that its top 10 customers are not just staying on board, they are lifting their spending.

What did management say?

MNF’s CEO, René Sugo, was rightfully pleased with the 12 months.

He said: “After a strong start to the year, I am pleased to report we have ended the 2021 financial year at the top end of market guidance, achieving solid performance across all metrics, including record EBITDA of $43.1 million and a 29% growth in phone numbers.”

“I’m particularly proud of the progress we have made against our strategy during the year, as we build MNF into a world-class software company. We completed the divestment of parts of our Direct business, aligning our business to wholesale revenue and the multi-billion-dollar opportunity we see ahead of us.”

What’s next for MNF?

Following the divestment of its direct business, MNF is refreshing its strategy.

Mr Sugo explained: “MNF has refreshed its strategy for FY22 to focus on three areas to build MNF into a world-class software company. The new strategy seeks to simplify the business, build best in-class software capability and network, and scale and expand throughout Asia-Pacific both organically and through acquisition, driving short term revenue and margin growth and medium term EBITDA.”

The CEO also revealed that the company has set itself a bold growth target over the remainder of the decade and aims to increase the phone numbers on its network significantly from 5.8 million currently.

“Enabled by the most experienced industry professionals, a strong culture and a genuine commitment to sustainability, MNF’s refreshed strategy underpins its new strategic goal: to reach 100 million numbers on network by 2030,” he added.

The company’s expansion across the Asia-Pacific market is expected to be a key driver of this.

Mr Sugo commented: “Our new strategy will support MNF to achieve its new 2030 vision, and sets a clear path for global expansion, with the goal to reach 100 million numbers on our network by 2030. This will be achieved by increasing our market share and expanding our presence across Asia-Pacific. Singapore provides the stepping-stone into more opportunities in APAC. Now, supported by a strong balance sheet, we will further invest in our three business divisions, to capture further market share and expansion across the region.”

This appears to have gone down well with investors, judging by the MNF share price performance today.

And while no guidance has been given for FY 2022, MNF revealed that it has started the new financial year positively.

“MNF continues to benefit from the increased utilisation of collaboration and communications software applications due to the COVID-19 pandemic. The business has had no immediate impact due to current lockdowns and July 2021 trading showed continued growth,” he concluded.

The MNF share price is up 53% since the start of the year.

The post MNF (ASX:MNF) share price rockets 17% on strong result and bold growth targets appeared first on The Motley Fool Australia.

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Motley Fool contributor 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 and has recommended MNF Group Limited. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The RPMGlobal Holdings Ltd (ASX: RUL) share price is slipping this morning following the release of the company’s financial year 2021 (FY21) earnings.

Right now, the RPMGlobal share price is $1.875, 4.09% lower than it was at yesterday’s close

RPMGlobal share price slumps on $5.5 million loss

Here are the mining industry consultant, technology, and development solutions company’s earnings for FY21:

• A 685.7% greater loss than that of FY20. The company ended the period down $5.5 million
• Net revenue down 2.8% to $66.9 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $5.2 million, a 30% increase on that of FY20
• Total annual recurring software revenue of $38.7 million

As you can see, RPMGlobal didn’t have a great year. However, it clarified that its $66.9 million of net revenue didn’t include $43.9 million worth of software licenses sold during the financial year, but that the attributable revenue will be reported over the next 3 to 5 years.

RPMGlobal received $3.7 million from various government COVID subsidies around the world during FY21. It also paid $2.2 million to acquire Revolution and IMAFS.

Revenue from RPMGlobal’s GeoGAS business decreased by 2% to $4.1 million in FY21. Following the end of the period, RPMGlobal devested GeoGAS stating GeoGAS’ coal focus contrasted with RPMGlobal’s work toward sustainability.

RPMGlobal ended FY21 with $44.6 million of cash in the bank and no debt.

What happened in FY21 for RPMGlobal?

COVID-19 hit RPMGlobal hard, and its share price is feeling it today.

The company’s business was impacted greatly as mining companies reduced their project load to focus on protecting themselves from COVID-19 and associated restrictions.

RPMGlobal used the downtime to evolve its product suite. Over the past 12 months, it began offering cloud solutions. Right now, 3 customers are using RPMGlobal’s new Haulage as a Service (HaaS) cloud solution.

Additionally, all the company’s customers’ transaction volumes are increasing as they move to cloud services across other operations.

Adoption of RPMGlobal’s XECUTE also increased in FY21. 12 more miners committed to the product over the period.

RPMGlobal extended XECUTE’s functionality with the release of its new module, Staged Stockpiles, during the financial year just been.

Since the start of FY21, RPMGlobal has signed 39 new customers onto new product contracts. The company expects that, over time, these customers will buy additional products from its suite.

RPMGlobal also acquired IMAFS Inc in October 2020, and Revolution Mining Software in July 2020.

What did management say?

RPMGlobal’s chair, Stephen Baldwin, commented on the results driving the company’s share price downwards today, saying he hopes FY22 will be a better year for the business:

Financial Year 2021 was a year dominated by COVID. All of our operations around the world were affected… I am pleased to report that even under such trying conditions the business continued to grow…

While international travel restrictions continue to impact our advisory business, we have seen a lift in demand for our metals and new [environmental, social, and governance (ESG)] divisions. There is significant activity in the mining industry currently and as such we expect a better year from our advisory business in FY2022 than it achieved in FY2021…

At a time when other software vendors to the mining industry were reducing their software investments, due to the impacts of COVID, RPM once again increased its investment with the acquisitions of Revolution Mining Software Inc in July 2020 and IMAFS Inc in November 2020.

What’s next for RPMGlobal?

Here’s what RPMGlobal expects could drive its share price in FY22:

The company stated that, while many forecast the FY22 market will be mostly positive, it’s wary that commodity prices are expected to remain flat. Additionally, it expects the price of iron ore will drop as Brazil ramps up its production and China develops more iron ore projects of its own.

However, it expects precious metals’ prices to remain strong. That may see precious metals miners investing in both grass root project development and organic growth through mergers and acquisitions.

Additionally, RPMGlobal believes its focus on ESG will see demand for its services boost. Its currently working to build out its ESG advisory team and incorporate ESG support into its product suite.

To support future ESG movements, RPMGlobal acquired Nitro Solutions, an Australian ESG mining advisory business, in July 2021.

RPMGlobal invested $13.2 million on its software products during FY21 and is now aiming to release 4 new products during FY22. These include Pit-to-Port, AMT Mobile, Multi-Period Scheduling Optimiser, and Gas Drainage. It will also release support for hydrogen vehicles and continue moving its software to the cloud.

RPMGlobal share price snapshot

The RPMGlobal share price is currently 45% higher than it was at the start of 2021. It is also 47% higher than it was this time last year.

Over FY21, RPMGlobal’s market capitalisation increased by $172.8 million to reach $408.4 million. Right now, it’s around $430 million.

The post RPMGlobal (ASX:RUL) share price slumps on mixed FY21 results 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. owns shares of and has recommended RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Uniti Group Ltd (ASX: UWL) share price is flying higher in early trade on Tuesday. This follows the telecommunications company reporting its full-year results for FY21 this morning.

At the time of writing, Uniti shares are up 5.85% to $4.16. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is 0.3% in the green.

Uniti share price jumps on record results

• Record revenue, up 175% to $159.9 million
• Underlying earnings before interest, tax, depreciation, and amoritisation (EBITDA) of $93.7 million, up 254%.
• Record operating free cash flow of $64.2 million
• Record earnings of $29.2 million, reflecting an increase of 83% from FY20
• Completed the acquisitions of HabourISP, OptiComm, and Velocity during FY21
• 501,198 secured premises (excluding Velocity) as at June 2021, representing an increase of 15% in the past 6 months

What happened in FY21 for Uniti Group

The Uniti Group share price is rallying on Tuesday after reporting its full-year results. The market is bidding the telecommunications company’s shares higher after a record result on numerous fronts.

According to the release, Uniti achieved revenue of $159.9 million for FY21 representing an increase of 175% from the previous year. The stellar revenue increase has been the result of the company’s various acquisitions and increased number of secured premises.

Likewise, Uniti’s contracted order book has grown to 250,460 construction premises. The company’s national digital infrastructure footprint now spans 1,199 sites across Australia. This expansion has been met with optimism, pushing up the Uniti share price.

Furthermore, many investors will know that Uniti Group has been busily acquiring and integrating additional companies over the past year.

The combination of OptiComm and Telstra Velocity has enabled the company to create a substantial core telecommunications and technology infrastructure business during the year.

This push means Uniti now considers itself as the largest competitor to NBN Co in the fibre to the premise (FTTP) market.

However, as mentioned earlier in the year, Uniti’s board has advised it is unlikely to proceed with additional acquisitions in the short term.

Instead, the board is now moving to the next phase of driving organic growth in the consolidated business group. Although, management said it would not completely rule out asset acquisitions if they were to be complementary.

What did management say?

Commenting on the record result, Uniti Group Managing Director and CEO Michael Simmons said:

Uniti is a core digital infrastructure business with high earnings growth and high free cash after funding the infrastructure to generate the earnings.

In two and a half years, Uniti has transitioned from a loss making entity with market capitalisation of approximately $30M to an ASX200 business with an enterprise value fast approaching $3B. This has been achieved by investing in the right markets. And today we have a very low market share in these markets.

Additionally, in the letter to shareholders, Mr Simmons said:

For the reasons outlined in this letter, we believe the core infrastructure platform that we have established, and the simplified strategy to win new business in market, coupled with our already secured contract order book, is poised to deliver substantial organic growth.

What’s next for Uniti Group?

No specific guidance was supplied by Uniti Group in its full-year results. Though the mission is fairly clear — the company intends on driving organic growth through winning greater market share in greenfield markets.

Uniti’s market share in its core operating segments remains low. As such, this is still considered a sizeable opportunity for telecom challengers.

Uniti Group share price snapshot

The Uniti Group share price has delivered exceptional returns to shareholders over the past 12 months. While the S&P/ASX 200 Index (ASX: XJO) provided a solid return of 22%, Uniti shares climbed 174% during the same period.

These returns have continued in strength during the past month with the Uniti share price appreciating 21% in 1 month.

The post Uniti Group (ASX:UWL) share price soars on record revenue in FY21 appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Viva Energy Group Ltd (ASX: VEA) share price is climbing after the company released its results for the 6 months up to 30 June.

At the time of writing, shares in the petroleum company are trading for $1.99 – up 1.27%. At one point, shares reached an intraday high of $2.05. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.25% higher.

Let’s take a closer look at today’s announcement.

Viva Energy share price jumps as gross profit more than doubles

Here are some of the highlights from Viva Energy’s half-year results:

• Gross profit of $789 million, which is up 114% on the prior corresponding period (pcp). Net profit after tax (NPAT) jumped 87.5% on the pcp to $112 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $256 million – up 125% on the pcp. This, however, is short of its last earnings update.
• $224 million of operating free cash flow before expenditure.
• An interim dividend of 4.1 cents per share (up 19.5% on the pcp). As well, the company will make a special cash payment of 6.2 cents per share after its divestment from the Waypoint REIT and will buy back $40 million worth of stock on-market. All up, Viva will return around $206 million in capital to shareholders.

What happened in the first half of 2021 for Viva Energy?  

Fluctuating oil prices have had a significant effect on the Viva Energy share price during this reporting period.

When oil prices were rising, Viva shares were rising. When Texas tea was on the downward slope, so was the Viva Energy share price. The Woodside Petroleum Limited (ASX: WPL) share price experienced a similar phenomenon.

In May, Viva and Ampol Ltd (ASX: ALD) share prices were boosted when the federal government announced a subsidy for both companies to maintain domestic oil refining capabilities.

Refineries will receive government support payments if their profit margin falls to, or becomes lower than, $10.20 per barrel of oil.

What did management say?

Viva Energy CEO and managing director Scott Wyatt said:

Viva Energy has delivered a strong result in the first half of 2021, with improved operational and financial performance across all parts of the business. Performance was driven by continued strength of our retail business, recovery within the commercial business, strong cost management, and improved refining conditions.

The company has been awarded a grant of up to $33.3 million for the establishment of 90ml diesel storage which will improve production and import economics, and further benefit from the proposed implementation of mandatory stockholding obligations. We also continue to make solid progress on our gas terminal, which remains the best-placed project to meet the looming Victorian gas shortfall expected in 2024, and have made good progress on other opportunities such as hydrogen for trucks and bus fleets. These projects are aimed at leveraging the strategic position we hold in the Victorian market.

He added:

Our retail business is benefiting from growth in the Liberty convenience business, the expansion of Shell V-Power to new markets, and the refreshment of Coles Express store network with our Alliance partner. Convenience and premium fuel sales continue to grow, and we are looking forward to further developing our fuel and convenience offerings with our partners as this marketplace continues to evolve.

What’s next for Viva Energy?

Viva Energy believes it is “well-positioned” to manage the short-term material impacts of COVID-induced lockdowns across the country. The group expects retail sales to quickly recover when restrictions ease in Sydney and Melbourne.

Viva Energy share price snapshot

Over the past 12 months, the Viva Energy share price has fallen by more than 6%. Year-to-date, conversely, Viva shares have appreciated by more than 5%.

Viva Energy has a market capitalisation of approximately $3.2 billion.

The post Viva Energy (ASX:VEA) share price lifts as $200m cash pledged to shareholders appeared first on The Motley Fool Australia.

More reading

• Lower profits but higher dividend, Alumina (ASX:AWC) share price lifts on 1H21 results
• Scentre (ASX:SCG) share price leaps higher on 28% profits boost
• When was the best ever day for the Afterpay (ASX:APT) share price?
• Austal (ASX:ASB) share price sinks 13% on weak FY21 result
• Nitro Software (ASX:NTO) share price flat after 1H21 results

Motley Fool contributor Marc Sidarous 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 Bruce Jackson.

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