Tag Archives: Profit

Billion dollar profit nosedive strikes Qantas

Billion dollar profit nosedive strikes Qantas

Qantas suffered a billion dollar-plus loss in profits in the first half of its trading year, dogged by both domestic and international travel restrictions due to the coronavirus pandemic.

The airline endured an underlying loss before tax of $1.03 billion and a $6.9 billion drop in revenue, noting the half-year results covered Victoria’s extended COVID-19 lockdown and nationwide border closures.

Qantas Group CEO Alan Joyce said the results are “stark but not surprising”.

“During the half we saw the second wave in Victoria and the strictest domestic travel restrictions since the pandemic began,” Joyce said, releasing the results on Thursday.

“Virtually all of our international flying and 70 per cent of domestic flying stopped, and with it went three-quarters of our revenue.”

The group’s statutory loss before tax was $1.47 billion, which included further redundancy and restructuring costs of $284 million, coming on top of the $642 million provided in its 2020 full year results.

It also included a further $71 million writedown of the A380 fleet, in line with its Australian dollar market value.

Joyce said despite these huge challenges, he believes the results show the group’s underlying strength.

“When we had the opportunity to fly domestically, we saw significant pent-up travel demand and generated positive cash flow,” he said.

The Qantas Loyalty program still generated a strong cash contribution of $454 million as the vast majority of points are earned from activity on the ground, while Qantas Freight had a record result because a lack of international passenger flying created a shortage of cargo space globally.

“These factors couldn’t overcome the massive impact of the crisis, but they have softened it,” Joyce said.

Recent domestic border closures have delayed the group’s recovery by an estimated three months.

Based on a variety of factors, the working assumption for international travel has moved to the end of October 2021, but with a material increase in trans-Tasman flying scheduled for July 2021.

“The COVID vaccine rollout in Australia will take time, but the fact it’s under way gives us more certainty,” Joyce said.

“More certainty that domestic borders can stay open because frontline and quarantine workers will be vaccinated in a matter of weeks. And more certainty that international borders can open when the nationwide rollout is effectively complete by the end of October.”

Qantas said federal government assistance, such as JobKeeper, has helped the airline through the profound impact of the travel restrictions, as have support for regional, domestic and some international flights that helped to keep key transport links active.


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Angry Birds creator Rovio swings to fourth-quarter profit, raises dividend

Angry Birds creator Rovio swings to fourth-quarter profit, raises dividend

Rovio Entertainment, the maker of the “Angry Birds” games franchise, swung to a profit in the fourth quarter from a year-ago loss and said on Friday it would raise its full-year dividend by a third to 0.12 euros per share.

The Finnish company’s operating profit stood at 2.9 million euros ($3.5 million) for the October-December quarter, up from a loss of 0.1 million euros in the same period last year but down from a 12.8 million euro profit in the third quarter.




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First Published: Fri, February 19 2021. 13:56 IST

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Sharp rise in profit, earnings upgrades: India Inc finds its mojo back and stock market is loving it

Sharp rise in profit, earnings upgrades: India Inc finds its mojo back and stock market is loving it

Profit, earnings, stock marketThe aggregate profit growth of BSE 500 companies has accelerated to nearly 46% on-year in the fiscal third quarter, hinting at broad-based recovery and not just in select few big names.
(Image: REUTERS)

The sharp rise in corporate profits in the third quarter, and the resulting series of earnings upgrades are now pushing the Dalal Street further up, taking over from the Budget-driven share market rally. The aggregate profit growth of BSE 500 companies has accelerated to nearly 46% on-year in the fiscal third quarter, hinting at broad-based recovery and not just in select few big names. Along with a jump in profits, cost optimization has resulted in EBITDA growth, which has further led to sequential earnings upgrades, something that does not come very often on Dalal Street.

Equity strategists vouch for earnings propelling equities

  • “Globally earnings season is driving markets which are flirting near all-time highs. A combination of positive sentiment, positive FII flows and very healthy earnings could keep markets at elevated levels in the near future,” said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities, earlier this month.
  • Going ahead, the overall long term structure of the market remains positive given the confluence of economic recovery, containment of COVID-19, earnings beat, and an expansionary Budget, Siddhartha Khemka, Head – Retail Research, Motilal Oswal, said last week.
  • Credit Suisse has termed India’s EPS momentum as the strongest among other Asian peers while it upgraded India to overweight in the Asia Pacific portfolio.
  • Motilal Oswal has raised Nifty 50 EPS estimates for the next two fiscal years by 2.8% and 3.2%, respectively.

Not just profits: Sales pick up, costs fall, margins expand

Although profit growth was positive even in the previous quarter, a pickup in sales growth has surprised this quarter. Excluding commodity companies, the aggregate sales growth turned positive after three consecutive quarters of decline, hitting a six-quarter high. Owing to the pandemic, companies have taken up cost-cutting measures to sustain amid the challenges posed by the pandemic. Wage costs, despite profit growth, have barely grown from the previous quarter. However, higher realization on sales and cost optimization has helped EBITDA growth. Barring utilities, every other sector reported an EBITDA margin expansion.

Profit rise broad-based

  • Nifty 50: Up 26% on-year (ICICI Securities)
  • Nifty Next 50: Up 37% on-year (ICICI Securities)
  • Midcap100: Up 80% on-year (ICICI Securities)
  • Nifty200: Up 31% on-year (ICICI Securities)
  • MOFSL Universe: Up 33% on-year (Motilal Oswal)
  • Domestically-oriented sectors (aggregate ex-financials, commodities, IT & Pharma): Up 22% on-year (IIFL Securities)

How it helps corporate outlook

This significant improvement in net profit now places India Inc in a much comfortable position to service debt. Though, rising interest rates in the wake of inflation and higher government borrowings could pose a risk.

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Emaar posts AED2.67b net profit for 2020 – Arabian Post

Arabian Post Staff

Emaar Properties , the master developer of the Burj Khalifa, reported a revenue of AED 19.710 billion (US$ 5.366 billion) and net profit of AED 2.617 billion (US$ 712 million). Overall property sales were worth AED 10.902 billion (US$ 2.968 billion) of which AED 6.321 billion (US$ 1.721 billion) was achieved in UAE. The company attributed the performance to sustained interest from investors, both domestic and foreign.
Emaar now has a total sales backlog of AED 36.677 billion (US$ 9.986 billion) of which AED 24.738
billion (US$ 6.735 billion) is in the UAE, to be recognised as revenue in the coming years.
Mohamed Alabbar, founder of Emaar, commented on the company’s strong results: “Our
performance in 2020 is a direct result of our ability to move quickly, adapt to new business
conditions and utilise our existing resources to access new opportunities. We continue to embrace
technology to help grow our business, while at the same time closely adhere to the cost discipline
that helps us achieve better results in each quarter.
“Looking ahead to 2021, we see a world of opportunities – both traditional and technology-driven –
that will help us grow in ways and in markets that didn’t exist five or ten years ago. This growth and
prosperity would not have been possible without the UAE’s wise leadership, who continue to
provide us with business conditions where we can achieve our full potential.”
Emaar Development , Emaar’s build-to-sell real estate business in UAE, reported revenue of AED 9.758 billion (US$ 2.657 billion) with a net profit of AED 1.657 billion (US$ 451 million). Emaar Development remains committed to its projects’ delivery timeframes. As of December 2020, Emaar’s delivery track record includes more than 47,000 residential units in Dubai and, including other international markets, Emaar has delivered over 72,100 residential units. Over 26,000 residences are currently being developed in the UAE, alongside 12,000 units across
international markets.

Emaar Malls , majority-owned by Emaar Properties , reported revenue of AED 3.508 billion (US$ 955 million) in 2020, with a net profit of AED 704 million (US$ 192 million), despite a significant disruption due to Covid-19.
As part of its continued support for tenants, Emaar Malls also extended its flexible Rent Relief Policy
until March 31 2021, including a tiered base rent waiver for its tenants.
Online fashion and beauty destination platform Namshi, which was fully acquired by Emaar in 2019, recorded overall revenue of AED 1.316 billion (US$ 358 million) in 2020. With a 28 per cent increase in revenue compared to last year; Namshi’s customer base continued to rise across the MENA region.
Emaar’s hospitality, leisure, entertainment and commercial leasing business contributed AED 1.618 billion (US$ 441 million) to the Group’s total revenue. Along with Emaar Malls, these businesses recorded revenue of AED 5.126 billion (US$ 1.396 billion), representing 26 per cent of Emaar’s overall revenue.

Emaar’s international property development recorded revenue of AED 4.826 billion (US$ 1.314 billion) for 2020, a 10 per cent increase in revenue compared to last year. International development business contributed 24 per cent to Emaar’s total revenue and results were underpinned by continued successful operations in Egypt and Pakistan, in particular.

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SLT Group’s operating profit for 4Q 2020 grew by 27-pct, revenue recorded at Rs. 24Bn – Lanka Business Online

SLT Group’s operating profit for 4Q 2020 grew by 27-pct, revenue recorded at Rs. 24Bn – Lanka Business Online

Sri Lanka Telecom PLC (SLT) Group concluded financial year 2020 on a high note, with a significant 25% YoY growth in profit after tax to Rs. 7.9 Bn, despite many challenges faced by the Group arising from the COVID-19 pandemic.

Group revenue climbed to Rs. 91.1 Bn for the year with a 6% YoY growth, strongly underpinned by higher broadband revenue propelled by the accelerated fibre expansion programme and growth in mobile broadband services. Revenue for PEOTV and carrier services also advanced during the year.

SLT Group increased EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) by 16% YoY to Rs. 34.7 Bn in FY 2020, leading to a higher EBITDA margin of 38% compared to 35% in the previous year, mainly achieved through successful cost management measures.

Group revenue for Q4 2020, rose by 4% QoQ to Rs. 24.0 Bn, recording the highest quarterly revenue achieved for FY 2020. The operating profit for the quarter increased by 27% compared to the same quarter of the previous year reaching Rs. 1.9 Bn, a decline of 33% compared to 3Q 2020. The Group profit after tax for the quarter reported at Rs. 1.1 Bn, a drop of 48% QoQ, mainly due to the higher operating costs and adverse impact from fluctuation in foreign currencies.

Mobitel (Pvt) Ltd, the mobile arm of the SLT Group managed to grow its revenue despite adverse macroeconomic conditions prevalent in 2020. Mobitel reported a strong profitable growth due to simultaneous growth in revenue and reduction in operational expenditure. Mobitel revenue for FY 2020 stood at Rs. 43.2 Bn, up by 8% compared to FY 2019.

Backed by the growth in revenue and aptly supported by operational efficiencies, Mobitel was able to record significant growth in all key profitability indicators. The Company recorded Rs. 3.1 Bn improvement in EBITDA, an increase of 23% YoY. EBIT increased by Rs. 2.6 Bn in FY 2020 which is an increase by 50% compared to FY 2019. Mobitel recorded its highest ever profit after tax of Rs. 4.9 Bn in FY 2020, an increase by 54% YoY.

The Group paid a total amount of Rs. 17.1 Bn as direct and indirect taxes including levies to the Government in FY 2020.

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Toyota again ups FY 2020 net profit outlook to 1.9 tril. yen – TheAsiaLive

Toyota again ups FY 2020 net profit outlook to 1.9 tril. yen – TheAsiaLive


Toyota Motor Corp. raised Wednesday its fiscal 2020 earnings forecast, saying it expects a net profit of 1.90 trillion yen ($18 billion) following a steady recovery in auto demand in the U.S. and Chinese markets despite the coronavirus pandemic and a global semiconductor shortage.

Toyota previously forecast a net profit of 1.42 trillion yen for the year through March 31. The revised figure is 6.7 percent down on fiscal 2019.

The Japanese automaker lifted its global auto sales outlook for fiscal 2020 to 9.73 million units from its earlier target of 9.42 million units.

The upward revision came in stark contrast to its domestic rivals Honda Motor Co. and Nissan Motor Co., which had to cut their annual sales outlooks for fiscal 2020 by 100,000 units and 150,000 units, respectively, amid the global chip crunch.

“Semiconductors are in very tight supply globally, and we are also facing the same situation. But that has not led to a large cut in our output,” Toyota Chief Financial Officer Kenta Kon said at an online press conference.

“There is still uncertainty about the outlook due to factors such as the spread of the coronavirus. We need to pay close attention to risks,” Kon said.

For fiscal 2020, Toyota’s operating profit is expected to fall 16.6 percent from the year before to 2 trillion yen, outpacing its earlier estimate of 1.3 trillion yen.

The sales forecast was raised slightly to 26.5 trillion yen, down 11.3 percent, from the 26 trillion yen projected earlier.

Automakers have been hit by the pandemic, suffering sharp falls in sales. Toyota has benefited from a stronger-than-expected recovery in the United States and China.

In Japan, the Yaris compact has seen strong demand, becoming the best-selling vehicle in 2020, excluding minicars. The launch of new models in China also helped lift Toyota’s earnings.

The Toyota group sold 7.21 million vehicles in the nine months to December, down 11.4 percent from a year ago. The group reclaimed the crown as the world’s top-selling automaker for the first time in five years in 2020, outpacing Volkswagen AG of Germany.

For the April-December period, Toyota reported a 14.1 percent fall in net profit to 1.47 trillion yen. Operating profit was down 26.1 percent to 1.51 trillion yen on sales of 19.53 trillion yen, down 15.0 percent.

Toyota’s global sales figures include vehicles sold by its subsidiaries — small-car manufacturer Daihatsu Motor Co. and truck maker Hino Motors Ltd.

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ZhongAn expects its results to have turned around with net profit of US$78m for 2020

ZhongAn expects its results to have turned around with net profit of US$78m for 2020

ZhongAn Online P&C Insurance, together with its subsidiaries, expect to achieve a net profit attributable to owners of the company for the year ended 31 December 2020 of no less than CNY500m ($78m).

The expected CNY500m profit would represent a turnaround in the operations of ZhongAn. For 2019, the digital insurer recorded a net loss of approximately CNY454.1m attributable to owners of the company.

The profit alert for 2020 is based on the Group’s preliminary review of the unaudited management accounts and available information of the Group, says ZhongAn in a statement filed with the Hong Kong stock exchange. The Group is still in the process of finalising its results for the year ended 31 December 2020.

The improvement in the performance was primarily due to a substantial decrease in underwriting losses. In addition, as the company persisted in pursuing growth with quality, the combined ratio further improved accompanied by a steady increase in gross written premiums.

Founded in 2013, the online-only insurer went public in 2017. The company reported net losses attributable to shareholders of CNY996m in 2017, CNY1,743.9m in 2018 and CNY454.1m in 2019. The 2020 financial year would be the first year that the company reports net profits since the public listing.

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CDK reports quarterly profit as it awaits closing of international business sale

CDK reports quarterly profit as it awaits closing of international business sale

CDK Global Inc. reported a higher profit in its fiscal second quarter, though the figure is compared with a year-ago period that saw the company working to sell its digital marketing business.

The Hoffman Estates, Ill., dealership management system giant reported Monday that net income attributable to CDK for the quarter that ended Dec. 31 was $68.3 million, more than triple the $22.3 million from the same quarter a year ago.

Fiscal second-quarter revenue dipped 3 percent, to $406.3 million, and CDK said it set a record for the number of DMS customer sites. The company reported 14,851 total DMS customer sites in the quarter, 8,997 of which were in automotive. It was the eighth consecutive quarter that CDK added automotive DMS customer sites year over year, the company said.

CDK shares fell 5.7 percent to $52 in after-hours trading on Monday.

CDK in November said it planned to sell its international business to private equity firm Francisco Partners for $1.45 billion. The deal awaits regulatory approval and is expected to close in CDK’s fiscal third quarter, which ends March 31.

Proceeds from the sale are expected to allow CDK to focus on its North American operations, which include DMS and other software for auto dealerships and adjacent businesses in the U.S. and Canada. The sale also will allow the company to repay debt.

Under the deal, Francisco Partners will buy 100 percent of CDK’s international business, which has operations in Europe, Asia, the Middle East and South Africa, CDK said. The company last year said it expects to receive $1.3 billion in after-tax cash proceeds from the deal and expects roughly $35 million in costs for outside services to assist with the transaction.

“We remain very optimistic about our strategy to focus on growth opportunities in North America, giving us confidence we can deliver sustainable growth and create long-term shareholder value,” CDK CEO Brian Krzanich said in an earnings statement Monday.

As a result of the sale agreement, CDK is classifying its international business as discontinued operations in its financial results. CDK’s profit from continuing operations, which do not include the international business, was mostly flat at $58.8 million in the quarter. The company reported $11.3 million in earnings for its international business in the quarter. That compares with a $36 million loss in discontinued operations in the year-ago quarter while the digital marketing business was up for sale.

“We reached the highest site count in company history and increased revenue per site in both our auto and adjacency businesses, while we continue to deal with the broader uncertainty of the macro environment,” CFO Eric Guerin said in a statement. “As we move toward closing the sale of the CDK International business later this third quarter, I’m quite pleased with our strong financial position and ability to implement our growth strategy.”

CDK revised its financial guidance for the 2021 fiscal year excluding its international business. CDK lowered its revenue projections for 2021 to a range from $1.66 billion to $1.71 billion, down from an original $2 billion to $2.05 billion prior to announcing its pending deal for the international operations. Net earnings attributable to CDK for the 2021 fiscal year are expected to range between $990 million and $1.03 billion, up from an earlier projected range between $270 million and $310 million offered in its fiscal first quarter.

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Profit at Japan’s SoftBank zooms on lucrative investments

Profit at Japan’s SoftBank zooms on lucrative investments

Japanese telecommunications and technology conglomerate Softbank Group Corp. reported Monday a whopping 1.17 trillion yen ($11 billion) profit for the October-December quarter as its investments rose in value.

SoftBank’s profits were far better than what analysts had expected, zooming up 21-fold from the 55 billion yen profit recorded the previous year.

The value of its investments rose, including in DoorDash, a U.S. food delivery service, and Uber, a U.S. technology company that offers ride-hailing and deliveries.

Quarterly sales edged up 7% to 1.5 trillion yen ($14 billion).

SoftBank’s investment portfolio got an overall healthy boost from the booming global stock market.

Although companies have been hurt by the coronavirus pandemic, some companies, including those SoftBank has invested in, are proving beneficiaries of the need for people around the world to stay home.

SoftBank has an array of investments, mostly in technology companies, through its Vision Funds.

Recently, SoftBank’s bottom line benefited from selling its stake in U.S. mobile carrier Sprint and British IOT company Arm because the selling price was higher than the purchasing price.


Feb 09

Japanese telecommunications and technology conglomerate Softbank Group Corp. reported Monday a whopping 1.17 trillion yen ($11 billion) profit for the October-December quarter as its investments rose in value. (apnews.com)

Feb 09

The Japanese government has today mapped out plans to develop significant ammonia fuelling plans for its utility and shipping sectors.

Feb 08

Tokyo’s benchmark stock index reached its highest level in more than 30 years on Monday morning.

Feb 08

A sharp improvement in Japan’s trade balance saw the current account surplus more than double in December from a year ago. But the numbers show that the coronavirus continues to weigh on travel.

Feb 07

Japan’s average monthly spending by households in 2020 fell a real 5.3 percent from the previous year, marking the sharpest drop on record, as people refrained from going out due to the novel coronavirus pandemic, government data showed Friday.
(Japan Today)

Feb 07

Japan’s agriculture, fishery and forestry exports in 2020 hit a record high for the eighth consecutive year, with household items such as eggs and rice seeing a boost in sales during the novel coronavirus pandemic, the farm ministry said Friday.
(Japan Today)

Feb 06

Japanese brewer Kirin Holdings is scrapping a joint-venture in Myanmar with a conglomerate linked to the country’s army. The move follows the military coup earlier this week.

Feb 06

ANA Holdings Inc. plans to reduce its workforce in the aviation business by roughly 20 percent over the next five years through natural attrition to cut costs and cope with the COVID-19 crisis that has depressed travel demand, sources familiar with the matter said Friday.

Feb 05

Netflix will raise the prices of its streaming plans in Japan by up to 13% on Friday, leveraging a subscriber base that has expanded sharply amid the pandemic to invest in its growing library of original content, Nikkei has learned. (Nikkei)

Feb 04

Japanese cosmetics giant Shiseido is shedding some of its popular brands to focus on the luxury market. The firm will sell off its shampoo and affordable skincare unit to a foreign investment fund for about 1.5 billion dollars.

Feb 02

Private social audio app Clubhouse is growing rapidly in Japan and now ranks first among free apps on Apple’s App Store in a test of its international viability following its latest funding round.
(Japan Today)

Feb 02

A new law to ensure that technology giants do business with small companies on fair terms came into force Monday. (Japan Times)

Feb 01

Japan’s decades-long love affair with status-symbol office towers is now fading, as the pandemic upends work styles and puts a strain on company finances. (Bloomberg)

Feb 01

It is common to see non-Korean members in K-pop groups these days, but they were not really considered by the agencies that create such bands until recently. (Korea Times)

Jan 30

Workers at some technology firms in Japan have been swapping the office for the slopes, thanks to a pilot scheme that lets them work remotely from holiday destinations. (South China Morning Post)

Jan 30

The Louvre has agreed to enter into a four-year collaboration deal with Uniqlo, with the Japanese chain’s T-shirts to feature the Mona Lisa and other masterpieces held by the Paris museum.

Jan 29

There seems to be no end in sight for the price war among mobile phone carriers, with Rakuten Mobile Inc. unveiling a lower cost plan Friday in an effort to keep its edge over its powerful rivals. (Japan Times)

Jan 29

Deep losses for the operator of Tokyo Disney Resort illustrate how Japan’s leisure and entertainment companies are reeling from capacity limits and other restrictions tied to the coronavirus pandemic. (Nikkei)

Jan 29

Japan’s jobs market seems to have dodged a worse fate in December, with the unemployment rate coming in at 2.9%, unchanged from the previous month. (Nikkei)

Jan 29

Japan’s wine imports in 2020 decreased 7.0 percent from the previous year on a volume basis, as stay-at-home requests amid the novel coronavirus pandemic dampened demand from restaurants and bars, government data showed Thursday.

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