Pavan Sharma

Sky City revealed a strong half year result for the 2023 financial year as tourism reopens, however the stock remains beaten down as a “risk asset” as well as regulatory issues from its Adelaide property and similar regulatory issues at rival Star Entertainment weighing down on the sector.

Tourism Holdings shares were up after releasing solid earnings guidance for the 2023 financial yea0, ahead of its 2023 half year result. The stock now trades at a 3.5 year high, well above post-Covid levels. Factoring in a 7-month contribution from Apollo Tourism and Leisure, Tourism Holdings expects 2023 full year net profit to be $48m, whilst projecting net profit of $75m for 2024 financial year. We feel Tourism Holdings is attractively priced and, in a position, to reintroduce its dividend at the end of its 2023 financial year.

Wine maker Delegat Group shares slipped despite delivering a modest result for the first half of the 2023 financial year. Operating revenue increased by +11.2% to $198.8m, as favorable currency and increased pricing offset lower volumes. However, this did not flow down well to the profit line. Operating net profit after tax was only a touch higher at +1.6%, reaching $40.2m, as higher operating expenses and elevated freight costs hit margins and profitability.

Xero shares jumped +10.7% after its newly appointed CEO revealed plans to cut its workforce by 700-800 roles, representing upwards of ~16% of its 4,915 full time equivalent employees.