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The Propell Holdings Ltd (ASX: PHL) share price is soaring after the company announced its first foray into the buy now, pay later (BNPL) sector.

At the time of writing, the Propell share price is 42.86% higher than its previous close at 15 cents.

However, that’s lower than its intraday high of 19 cents, which was 76% up.

Propell is a fintech company with a platform that provides tailored finance products to help small and medium-sized enterprises (SME) manage their cash flow.

Let’s take a look at today’s news from Propell.

Propell’s new BNPL solution

Propell announced today that it has partnered with Zip Co Ltd (ASX: Z1P) to provide its first BNPL product.

The product will be available to those using Propell’s digital cloud-based platform. It will see SMEs able to offer a BNPL payment option to those purchasing their products and services.  

Aside from stating the split payments will not incur interest, Propell hasn’t released any details on the exact workings of its BNPL solution.

According to Propell, the option to offer BNPL will provide its customers with increased payment flexibility.  It also believes the new BNPL option will help SME retain and attract their own customers.

Additionally, the company expects the BNPL service will help to attract new customers to its platform.

Commentary from management

Propell’s CEO, Michael Davidson commented on the company’s new BNPL payment option:

I am delighted to be announcing our first BNPL product in partnership with Zip which we anticipate will attract new customers to the platform and underpin improved margins in our transactions business. A key focus at Propell, is to help our customers to better manage their finances and in particular their cashflow, and the Zip BNPL product will immediately enable these improvements with their up-front payments solution.

Propell share price snapshot

Today’s gains haven’t been enough to boost the Propell share price into the green since its initial public offering (IPO).

Currently, the Propell share price has fallen 34.78% from its IPO price of 23 cents in April 2021.

The company has a market capitalisation of around $12.22 million, with approximately 81.5 million shares outstanding.

The post Here’s why the Propell (ASX:PHL) share price jumped 76% today 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 ZIPCOLTD FPO. 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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Happy New Financial Year Fools! Of all the S&P/ASX 200 Index (ASX: XJO) blue chips over the month that has just passed us by, the Telstra Corporation Ltd (ASX: TLS) share price was certainly one to watch.

The ASX 200 itself had a solid month, rising from 7,161.6 points at the start of June to 7,327.1 points by the end of trading yesterday. That’s a gain of 2.1% for the month.

But the Telstra share price did a few better. Trading at $3.52 a share at the start of June, the ASX telco closed out the month at $3.76 a share, right on the edge of Telstra’s new 52-week high. That puts the company’s month-to-month gains at 6.82% for June. Not a bad effort for one month’s work.

So what went so right for Telstra over June?

Well, it’s worth noting that if the month of June was shorter by one day, Telstra would have ‘only’ managed a gain of 2.27%. Yes, the telco finished up on Tuesday at $3.60 a share. But it was the blockbuster announcement yesterday that really seemed to kick Telstra shares into gear.

Less (towers) is more for the Telstra share price

Yesterday, Telstra announced that it would be selling a 49% interest in its InfraCo Towers business. InfraCo Towers houses Telstra’s ~8,200 mobile towers and is one of the largest bastions of mobile infrastructure in the country.

Telstra announced that a consortium, led by the Future Fund and including Sunsuper and the Commonwealth Superannuation Corporation, has purchased the 49% stake in InfraCo Towers for $2.8 billion.

The sale is set to go ahead in the first quarter of the new financial year (by 30 September 2021).

Telstra is planning on using half of the proceeds to pay down debt, with the other half to be returned to shareholders in some form. The telco hasn’t yet expanded on this, but shareholders could potentially be in line for either a dividend pay rise or some share buybacks (or perhaps even both).

It was this announcement that caused the Telstra share price to rocket more than 4% yesterday, and finish the financial year at a new 52-week high. It also cemented the 6.82% gain for Telstra for the month of June.

Yesterday’s news was definitely the ‘main event’ for Telstra over June. However, there were some other factors that might have also been at play.

My Fool colleague James Mickleboro looked at the potential forward yield of Telstra shares earlier this week, including a forecast from investment bank and broker Goldman Sachs. Goldman reckons Telstra shares might be offering a forward yield of 4.5% per annum on current pricing through to FY2023. It also just yesterday revised its 12-month share price target to $4.20, up from $4.

After such a positive month for the Telstra share price, I’m sure investors are looking forward to what July and FY2022 will bring.

The post Here’s how the Telstra (ASX:TLS) share price fared in June appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation 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 Nutritional Growth Solutions Ltd (ASX: NGS) share price is on the move again following yesterday’s positive announcement from the company.

At the time of writing, Nutritional Growth Solutions shares are up 8.33% to 26 cents. This means that over the past two days, the company’s share price has risen by more than 26%.

Let’s take a closer look at what the global nutritional health company released to the ASX.

What did Nutritional Growth Solutions announce?

Investors are fighting to get a hold of Nutritional Growth Solutions shares after the company surpassed a milestone sales target.

According to its release, Nutritional Growth Solutions has received revenue of $508,000 in Italy over the past 3 months. The company launched its Healthy Height shake range in the southern European country during March this year.

Since then, the company has received three purchase orders from its exclusive distribution partner in the region, Dicofarm. Currently the products are stocked in pharmacies and health food stores across Italy.

Nutritional Growth Solutions said it selected Italy as its first entry into the European market based on the country’s large population of children. At current estimates, there are roughly 8.2 million children under the age of 14 years who live in Italy. This represents a significant market to build the company’s brand image and strengthen its sales base.

Nutritional Growth Solutions CEO and managing director Liron Fendell commented:

To surpass US$500,000 in wholesale sales in three months, in a new region, is a big milestone for our company and shows there is a genuine need for nutritional products that support growth development in children.

Our patented Healthy Height formula was developed over 20 years by leading paediatric specialists from the world-renowned Schneider Children’s Medical Centre in Israel and is clinically proven to improve growth in children through our shakes and foods that contain specific key nutrients needed for growth development.

We look forward to expanding our footprint in Europe to assist even more children to reach their height potential.

About the Nutritional Growth Solutions share price

While Nutritional Growth Solutions shares have accelerated recently, the same cannot be said for the past year. In the past 12 months, the company’s share price is down roughly 15%, and flat for the current calendar year.

Nutritional Growth Solutions is a small ASX share, valued at around $12 million. The company has almost 46 million shares issued on its books.

The post Why the Nutritional Growth Solutions (ASX:NGS) share price is soaring 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 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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A number of ASX listed exchange-traded funds (ETFs) are about to go ex-dividend today. These include popular Australian share market offerings from well-known providers Vaneck, BetaShares, Vanguard and Ishares.

We take a look at the list and what sort of cash their shareholders will be pocketing.

Which major ETFs are on the ex-dividend list today?

There are a total of 126 Australian listed ETFs going ex-dividend today. We will focus on 5 of the most popular ones that cover the broad Australian indexes.

Vaneck Vectors Australian Equal Weight ETF

The Vaneck Vectors Australian Equal Weight ETF (ASX: MVW) announced it will distribute a final dividend of 34 cents to shareholders on 23 July 2021, with shares going ex-dividend from 1 July.

The fund has posted a gain of around 6% year to date at the time of writing and has climbed almost 2% in the last month.

Shareholders will receive an annual dividend of 93 cents, and at the current share price of $32.77, the dividend yield is 2.84%.

The Australian Equal Weight ETF has a market capitalisation of $1.58 billion and trades at a price-to-earnings (P/E) ratio of 127. The ETF has maintained each dividend payment to shareholders since July 2014.

Vanguard Australian Shares Index ETF

One of Australia’s largest exchange-traded funds, with a market cap of $8.6 billion, the Vanguard Australian Shares Index ETF (ASX: VAS) will pay a final dividend of 55.6 cents per share on 16 July 2021, going ex-dividend from today.

The Australian Shares Index ETF has returned a little over 10% this year and is 1.37% in the green over the last month at the time of writing. However, the market price has dipped into the red 0.11% over the past 5 days.

The fund has an annual dividend payment of $1.98 per share, giving a dividend yield of 2.1% at the current share price of $93.30.

It has maintained consistency in its distribution schedule, having met each dividend payment to shareholders since July 2009.

Ishares Core S&P/ASX 200 ETF

The Ishares Core S&P/ASX 200 ETF (ASX: IOZ) is set to distribute a final dividend payment of 20.3 cents per share to shareholders on 13 July 2021, after going ex-dividend from 1 July.

With a market capitalisation of $4.1 billion, the fund’s upcoming final payment will complete an annual dividend of 60.4 cents per share, with a dividend yield of 2.02% at the time of writing.

It is in the red from the previous 5 days trading, however is in the green 1.15% over the past month and is up 10.23% since 1 January.

The investment vehicle from asset management giant BlackRock has completed each dividend payment to shareholders since March 2011 and is currently trading at $29.85 at the time of writing.

BetaShares Australia 200 ETF

BetaShares’ flagship product the BetaShares Australia 200 ETF (ASX: A200) will pay its final dividend to shareholders on 16 July 2021, with shares ex-dividend effective 1 July.

At the time of writing, the ETF is in the red 0.98% today and is also down 0.16% over the past 5 days. In the past month, the ETF price has gained 1.29% and has also climbed almost 11% since the start of this year.

The fund will pay shareholders a 56.54 cents per share dividend, lending to an annual dividend of $2.77 per share. At the current share price of $122.93, the dividend yield is 2.25%.

A relatively new investment vehicle, the Australia 200 ETF has made each dividend payment in whole since February 2018 and has posted a 12-month return of around 24%.

Vanguard MSCI Australian Large Companies Index ETF

The Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) also goes ex-dividend today and will return a dividend payment to shareholders on 16 July 2021.

Shareholders can expect to pocket 34.4 cents per share which gives an annual dividend yield of 2.48% at the current market price of $75.45.

The fund has been in existence since 2011, and has made good on each dividend payment since July 2011.

At the time of writing, the ETF has a market capitalisation of $136.2 million and has given a return just over 11% since the start of the year.

The post These 5 ASX listed ETFs go ex-dividend today 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 Mesoblast Limited (ASX: MSB) share price soared earlier today. This came after news the company has requested to meet with the United States Food and Drug Administration (FDA) to discuss its chronic lower back pain medication.

Shortly after the opening bell, Mesoblast shares surged to $2.08 — 5.05% higher than its closing price yesterday. It has since settled lower to $2.01, up 1.52% at the time of writing.

According to Mesoblast, its drug would be an alternative therapy to opioids. This is important because excessive use of opioids is considered a major problem by US policymakers and regulators.

More than 50% of US opioid prescriptions are given to patients with chronic lower back pain.

Let’s take a look at today’s news from Mesoblast.

Mesoblast’s meeting with FDA

According to the release, the company has requested and expects to be granted, a meeting with the FDA in the September quarter.

In the meeting, Mesoblast and the FDA would discuss pathways to have rexlemestrocel-L approved for use in the United States.

The company recently completed a 404 patient phase 3 trial of rexlemestrocel-L. The trial saw rexlemestrocel-L successfully treating patients with chronic inflammatory back pain caused by degenerative disc disease.

According to Mesoblast, it will use the results from a future US-based trial to help achieve product approvals in the United States and the European Union.

To bypass the need for a European Union-based trial, Mesoblast envisages 20% of the trial’s patients will be European. Mesoblast states that including European patients in the trial will provide “regulatory harmonisation”, cost efficiencies, and a faster timeline.

To make it happen, the company has amended its collaboration agreement with Grünenthal, its partner in Europe and Latin America.

Mesoblast is likely to be eligible for payments of up to US$112.5 million before rexlemestrocel-L launches in the European Union. To be eligible, it must pass certain clinical and regulatory milestones and reimbursement targets.

The company states that the payments could reach a combined US$1 billion. However, that figure is dependant on the outcome of phase 3 studies and patient adoption. It will also receive royalties on product sales.

Commentary from management

Mesoblast’s chief medical officer, Dr Fred Grossman was quoted in the company’s release. He said:

We look forward to discussing with the FDA the most efficient path forward given the durable pain reduction for at least two years and the opioid-sparing activity from a single administration of rexlemestrocel-L that was observed in the recent Phase 3 trial.

Mesoblast share price snapshot

The Mesoblast share price needs all the good news it can get to boost its recent poor performance.

Currently, shares in Mesoblast are over 13% lower than they were at the beginning of 2021. They have also fallen around 40% since this time last year.

The company has a market capitalisation of around $1.29 billion, with approximately 647 million shares outstanding.

The post Mesoblast (ASX:MSB) share price surges 5% in early trade today 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 Bruce Jackson.

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The Challenger Exploration Ltd (ASX: CEL) share price is surging 30% higher in early trade.

Shares in the exploration company are storming higher after reporting drilling results earlier today.

At the time of writing, the Challenger share price is trading around 25% higher at 27.5 cents after hitting an intraday high of 28.5 cents.

Lets take a look at Challenger’s drilling results and why investors are flocking to buy shares.

Challenger share price jumps on drilling results

Earlier today, Challenger released results from its ongoing rock saw channel sampling program from the company’s Hualilan Gold Project.

According to the announcement, Challenger reported its highest ever grades from the site. The company noted significant high-grade mineralisation in the 200 metres up-dip from current drilling.

The results cover approximately 300 metres of strike at Cerro Norte and are the first continuous channel samples taken above ground level.  

Challenger’s results from the Sanchez Fault approximately 100 metres up-dip from ground included;

• 15.6m at 71.7 g/t AuEq2 – 70.9 g/t gold, 59.1 g/t silver, 0.2% zinc including;
• 4.0m at 203.8 g/t AuEq2 – 201.6 g/t gold, 172.0 g/t silver, 0.1% zinc.

Sampling up-dip of previous channel sampling from the company’s main Cerro Norte Manto site returned;

• 64.8m at 28.3 g/t AuEq2 – 23.4 g/t gold, 104.1 g/t silver, 8.3% zinc including;
• 8.8m at 49.3 g/t AuEq2 – 45.2 g/t gold, 88.7 g/t silver, 6.8% zinc and;
• 26.5 m at 34.4 g/t AuEq2 – 29.3 g/t gold, 114.4 g/t silver, 8.2% zinc

Commenting on the results, CEL Managing Director, Mr Kris Knauer, said

“These are the best results we have seen at our Flagship Hualilan Gold Project – 4m at 201.6 g/t gold is outstanding. The results confirm our view that the strongest mineralisation is likely to be in the Hualilan Hills which are yet to be drilled.”.

Snapshot of the Challenger share price

Challenger is engaged in the exploration of gold and copper with operations in Ecuador and Argentina. The company’s flagship gold projects include the Hualilan Gold project in Argentina and El Guayabo/Colorado V Project in Ecuador. 

Earlier this year Challenger outlined plans for a fully-funded drilling program for its Hualilan Gold project. The company believes there is a historical resource of 627,000 ounces of gold.

The Challenger share price has been volatile in 2021. Shares in the company hit a high of 39.5 cents in mid-February. Since then the Challenger share price has rallied and dipped. Including today’s price action, the Challenger share price is up more than 34% for the year.

The post Why the Challenger (ASX:CEL) share price is storming 30% higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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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The Ioneer Ltd (ASX: INR) share price is gaining today, up 1.43% after earlier posting gains of more than 6%.

Below we take a look at the details of the emerging lithium producer’s offtake agreement.

What did Ioneer announce?

In a mid-day release yesterday (when the Ioneer share price closed up 3%), Ioneer announced it had signed a binding offtake supply agreement with EcoPro Innovation Co Ltd. The agreement is subject to Ioneer reaching a final investment decision (FID).

EcoPro is the second largest manufacturer of nickel cobalt aluminium oxide (NCA) cathode materials in the world. It supplies cathodes to battery manufacturers.

Under the 3-year agreement, EcoPro will source lithium carbonate from Ioneer’s Rhyolite Ridge lithium-boron project in the US state of Nevada. It will then convert this into high purity lithium hydroxide.

Ioneer will deliver up to 7,000 tonnes per annum (tpa) of lithium carbonate to EcoPro over a 3-year period. This will comprise an initial 2,000 tpa with an option for 5,000 additional tpa, If both parties agree before Q1 2022.

According to the release, this is Ioneer’s first lithium offtake agreement. It represents approximately 34% of its total lithium carbonate output for the first 3 years of production. The company expects to start production towards the end of 2023.

Commenting on the agreement, Ioneer’s managing director Bernard Rowe said:

It is our first lithium offtake agreement and partnering with a recognised world leader in cathode materials manufacturing is a testament to the quality of our lithium carbonate. Following a pilot plant tour in mid-2019 and detailed testing of our product samples, we are pleased that EcoPro found that our materials meet its exacting standards…

EcoPro’s president Anthony Kim added:

Ioneer’s lithium carbonate is well suited for conversion to high purity lithium hydroxide with a minimal environmental footprint. The US location of Rhyolite Ridge, coupled with the growing importance of the EV sector, positions both companies to play an important role in the electrification of transportation in the USA.

Ioneer share price snapshot

Over the past 12 months, Ioneer shares have gained 173%. In comparison, the All Ordinaries Index (ASX: XAO) has posted 25% gains during this time.

Year-to-date the Ioneer share price has continued to outperform, up 26%.

The post Here’s why Ioneer’s (ASX:INR) share price is climbing higher 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 Creso Pharma Ltd (ASX: CPH) share price has returned from its trading halt and stormed higher.

At one stage today, the cannabis and psychedelics company’s shares were up as much as 21% to 17 cents.

However, the Creso Pharma share price has since given back most of these gains and is currently up 3.5% to 14.5 cents.

Why was the Creso Pharma share price in a trading halt?

Creso Pharma requested a trading halt last Friday morning so that it could prepare a sales update. Though, it remains unclear why the company required so much time to prepare this one compared to previous updates.

According to the release, Creso Pharma generated a total of $1.7 million in revenue during the second quarter of calendar year 2021. This is up 24% on the revenue it generated during the first quarter.

Management advised that this growth was underpinned by strong demand for its Mernova craft cannabis products and Creso Pharma’s animal and human health CBD products. It also notes that multiple purchase orders from various Canadian provinces highlight increased demand for Mernova’s products and its scalable recurring revenue model.

Looking ahead, management believes the company has a positive sales outlook. It also sees its potential merger with Canada’s Red Light Holland as providing an opportunity for multiple new near term market entries and scale up opportunities.

Though, it is worth noting that the market’s response to this merger proposal has been extremely subdued. In fact, the Creso Pharma share price has lost almost 20% of its value since announcing the surprise merger plan. Therefore gaining shareholder approval for the merger is clearly far from guaranteed.

Non-Executive Chairman Mr Adam Blumenthal said: “Recent sales growth across the group is very pleasing and provides a very strong foundation for the remainder of 2021 and beyond. We look forward to providing further updates on revenue growth from our existing operations through new product launches and ongoing international expansion efforts.”

The post Why the Creso Pharma (ASX:CPH) share price is zooming higher 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. 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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It was one step forward and one step back for the Commonwealth Bank of Australia (ASX: CBA) share price last month.

Shares in the leading bank rallied strongly by mid-June, hitting a new all-time high of $106.57 on 17 June.

Just as things were looking unstoppable for CBA shares, a sharp 7.4% sell-off to $98.06 between 18 and 21 June would erase their monthly gains.

The CBA share price finished last month at $99.87, down 6.3% from record all-time highs, but still eking out a small monthly gain of 0.41%.

CBA share price month in review

Australia’s economic recovery gathering momentum

The Reserve Bank of Australia (RBA) held its June monetary policy meeting on 1 June, where its board said:

The economic recovery in Australia is stronger than earlier expected and is forecast to continue.

The RBA also commented on the housing market, saying:

Housing markets have strengthened further, with prices rising in all major markets. Housing credit growth has picked up, with strong demand from owner-occupiers, especially first-home buyers. There has also been increased borrowing by investors. 

The positive news regarding the broader Australian economy may have been a contributing factor in helping the CBA share price perform strongly in early June.

Regulatory bodies flag “increased risk taking”

The Council of Financial Regulators (CFR), which includes heavyweight bodies the RBA, the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission, and Treasury, held its quarterly meeting on 11 June, where it addressed potential housing market risks.

The quarterly statement highlighted:

APRA has written to the largest authorised deposit-taking institutions (ADIs) to seek assurances that they are proactively managing risks within their housing loan portfolios, and will maintain a strong focus on lending standards and lenders’ risk appetites.

Despite “signs of some increased risk taking recently”, the CFR said overall lending standards “remain sound”.

The quarterly meeting statement was released on 17 June. The CBA share price would go on to tumble 7.4% over the next two trading sessions to a low of $98.06.

Looming interest rate hikes

Westpac Banking Corp (ASX: WBC) believes the RBA could begin raising interest rates as soon as 2023.

In theory, banks can pass on the higher interest rate to borrowers, and experience an increase in profitability as net interest margins expand.

However, higher interest rates could also slow economic growth as borrowing rates tighten.

Concerns over higher interest rates took their toll on the broader market, with the S&P/ASX 200 Index (ASX: XJO) tumbling 1.81% on 21 June. The heavy selling was driven by losses in cyclical and defensive sectors including financials, industrials and utilities.

On this day, the CBA share price took a 5.4% tumble to $98.06. At the time of writing on the first day of the new financial year, Commbank shares are trading 0.88% lower at $98.99.

The post Why the CBA (ASX:CBA) share price pulled back from record highs in June appeared first on The Motley Fool Australia.

More reading

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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 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 Auckland International Airport Limited (ASX: AIA) share price is edging lower in afternoon trade. At the time of writing, the share price of the airport is down 0.59% to $6.72.

Below we take a look at the ASX travel share’s latest trading update.

What did the trading update report?

Auckland Airport’s share price is sliding after the company reported on the continuing uncertainty to its business outlook due to COVID-19. It said international travel numbers are expected to be impacted for the rest of 2021 as people remain unsure about potential future border restrictions.

Adrian Littlewood, Auckland Airport’s CEO, pointed to the new outbreaks in Australia as undermining passenger confidence. Littlewood said domestic and Cook Islands passenger demand was strong, while international demand was at “historically low levels”

Littlewood said that the path to recovery, as evidenced overseas, is via widespread vaccination. He added:

In line with this, the international passenger recovery in New Zealand is unlikely to materially change until the vaccination program rolls out to a significant number of New Zealanders across the next few months.

As a result, international passenger numbers and those business lines linked to passenger volumes, including retail and transport, may remain very subdued for the remainder of the calendar year. However, we do expect steady recovery from early in calendar year 2022.

The company is continuing to support retailers at its international terminals with ongoing rent relief. Littlewood said that due to the slower than initially expected return in passenger numbers, retail income will continue to be impacted at the airport. Total retail income for the 2022 financial year is forecast to be $25–35 million.

Auckland Airport has already increased its operations in anticipation of a full reopening, along with accelerating repairs and maintenance. It forecast operating costs being in the range of $160–175 million in the 2022 financial year.

After repaying $65 million in February, Auckland Airport has now repaid the remaining $425 million of its USPP borrowings.

Commenting on the repayment, Littlewood said, “When combined with the cancellation of cross-currency hedges associated with the USPP borrowings as well as some future fixed interest rate hedges this is expected to reduce Auckland Airport’s 2022 financial year interest expense by around $10 million.”

Earnings guidance for the 2021 financial year is unchanged, with a forecast loss after in the range of $35–55 million.

Auckland Airport share price

While still down more than 23% from its pre-COVID levels, the Auckland Airport share price has gained 13% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 23% in that same time.

Year-to-date the Auckland Airport share price is down 5%.

The post Auckland Airport (ASX:AIA) share price dips in afternoon trade appeared first on The Motley Fool Australia.

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