August 15, 2023
Hotel Revenue increased by 12% to $3.99 billion compared to $3.55 billion for the Six months ended June 30, 2022. Management noted, “Increases in hotel revenues and improvements in asset prices on its bond portfolio contributed positively to the Group’s performance. Double Tree Orlando continues to benefit from an uptick in guest spending and room rates as demand for leisure and business travels trend upwards when compared to the prior period.”
Higher interest-earning assets and higher interest rates resulted in Net capital gains on financial assets and liabilities amounting to $96.71 million (2022: Loss of $275.15 million).
Depreciation increased by 5% to close at $460.80 million (2022: $437.06 million), while Hotel Expenses increased by 13% from $2.53 billion in 2022 to $2.86 billion in the period under review. As a result, operating expenses for the Six months ended June 30, 2023 amounted to $3.69 billion, a 15% increase relative to $3.20 billion reported in 2022.
Operating Profit for the Six months ended June 30, 2023, amounted to $581.40 million, a 169% increase relative to $216.29 million reported in 2022. Operating Profit for the Second quarter amounted to $354.11 million (2022: Operating Loss of $9.20 million). Profit before tax totalled $581.40 million, a 169% increase from the corresponding period last year (2022: $216.29 million).
Taxation for the Six months ended June 30, 2023, amounted to $160.86 million, a 52% increase relative to $106.13 million reported in 2022. Taxation for the second quarter amounted to $72.34 million (2022: $62.26 million).
Net Profit from continuing operations for the Six months ended June 30, 2023 had a 282% increase to reach $420.55 million (2022: $110.16 million). Also, Net profit attributable to shareholders for the Six months amounted to $420.55 million, up from the $110.16 million reported in 2022. For the Second quarter, Net profit attributable to shareholders was $281.77 million (2022: Net Loss of $71.46 million).
Consequently, Earnings Per Share for the Six months amounted to $0.19 (2022: EPS: $0.05), while Earnings Per Share for the quarter totaled $0.13 (2022: LPS of $0.03). The twelve-month trailing EPS was $0.35 and the number of shares used in these calculations was 2,243,005,125.
Notably, XFUND’s stock price closed the trading period on August 15, 2023 at a price of $8.49 with a corresponding P/E ratio of 24.53x.
Balance Sheet Highlights
‘Property Plant and Equipment’ grew 17% to close at $16.55 billion (2022: $14.19 billion). Both ‘Current Financial Investments’ and ‘Non-Current Financial Investments’ increased by $1.45 billion and $1.20 billion, respectively.
Consequently, The company’s assets totalled $29.83 billion (2022: $25.37 billion). This increase was mainly due to, “excess cash earned being reinvested into securities purchased under resale agreement”, management noted.
Shareholder’s equity was $19.75 billion (2022: $16.50 billion), representing a book value per share of $8.81 (2022: $7.35).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
