NZ
Strong result at Tourism Holdings – NPAT of $49.9mn and a divvy of 15c per share. Rental yields up 20-85% across the board and its fleet increasing from 6,391 in 1H23 to 7,233. Integration of Apollo appears to be going well — result included 7 month contribution from the co. Debt increased mildly to $285mn. Retaining buy — stock up +5% as of writing.
Result in-with with mgmt’s guidance at Vulcan Steel — adjusted EBITDA of NZ$219m down 10% YoY, with adjusted NPAT of NZ$95m down 33% YoY. Mgmt cautioned towards a result next year, signaling weakening economic conditions and higher interest rate headwinds — firm sign of a ‘goods’ recession. Heartland Bank — underlying NPAT of ~$110mn and guiding for ~$116mn in NPAT for FY24. Heartland is a “performer” in a challenging climate and they are good results. Final divvy of 6c per share declared.
Tourism Holdings – on the ‘up’
Aus
NextDC delivered a stellar performance in FY23. However, the co indicated that there would be higher costs extending into FY24, resulting in guidance that fell short of initial expectations. The company explained that these costs were incurred to support its future expansion, driven by a rapid increase in demand. In FY23, NextDC reported an impressive 47% surge in contracted capacity (equivalent to +39MW). Anticipating a record-breaking year in FY24, the company has already secured contracts for approximately 23MW post-30 June. This suggests the potential for an additional ~16MW of contracted capacity. We look beyond the short-term fluctuations related to reinvestment and their impact on margins. Instead, we foresee a significant and sustained growth trajectory for the company as capacity ramps up between FY25-29. Retaining buy.
Fortescue Metals Group Ltd — Key takeaways: (1) After only five months, Fiona Hick has departed from FMG Metals, and has already been replaced by Dino Otranto (previously COO) – this continues the recent trend of senior executive turnover. (2) FMG reported in line underlying earnings of $5.5b. Senior mgmt > revolving door is concerning…esp for a listed public co.
Chart of interest – 50% of listed US companies are unprofitable…how does this play out in a recession?
