XFUND reports six months net loss attributable to shareholders of $5.10 billion

August 19, 2020

Total Revenue for the six months declined 52% to $1.65 billion (2019: $3.41 billion). Of this;

Interest income declined 9% to $10.80 million (2019: $11.89 million)

Net capital loss on financial assets and liabilities amounted to $144.07 million, relative a gain of $68.94 million booked the corresponding period in the prior year.

Hotel Revenue for the six months period decreased by 46% to $1.78 billion (2019: $3.33 billion), the Company noted that, “the outbreak of COVID-19 globally led to a pause in business activities at our local hotel, Jewel Grande Montego Bay (JGM) and those owned by Playa Hotels & Resorts N.V. (Playa) since mid-March. JGM resumed full operations on July 1st while Playa began re-opening on a phased basis. The reopening of the tourism sector has improved the outlook for our business activities.”

Notably, the Company also booked other income of $514,000 (2019: nil).

Operating Expenses for the period decreased 27% to $2.29 billion (2019: $3.15 billion). Of this; interest expense rose 8% to $381.65 million (2019: $352.64 million). Hotel expenses, however, decreased by 39% to $1.44 billion (2019: $2.38 billion). While depreciation increased 20% to $425.56 million (2019: $353.71 million) and Other operating expenses decreased by 40% to $36.80 million (2019: $61.64 million).

As a result, operating loss amounted to $634.26 million, relative to a profit of $264.35 million in the previous comparable period.

Share of loss from associate accounted for using the equity method for the period amounted to $1.93 billion relative to a profit of $878.56 million booked the prior year. Also, the Company reported a loss impairment of investment in associate of $5.20 billion (2019: nil) and a loss from dilution of associate of $380.75 million (2019: nil). Management noted, “with uncertainty surrounding patrons’ confidence in leisure and travel activities, a non-cash impairment charge of $5.20 billion was recorded on our investment in associated company, Playa. On June 12, 2020, Playa announced the issue of 4.88 million ordinary shares priced at U$4.10 per share and additional debt financing of US$204 million. This transaction led to a 0.56% reduction in X-Fund’s holdings and the Group recorded a loss on dilution of $0.38 billion. The shareholders of X-Fund Group have recorded $3.40 billion in relation to the impairment charge and the dilution of interest.”

The Company reported a loss before tax of $8.14 billion relative to pretax of $1.14 billion profit booked for the six months ended June 2019. After incurring tax credit of $97.16 million (2019: charge of $109.73 million), Net Loss amounted to $8.05 billion, relative to a profit of $1.03 billion for the comparable period in 2019. However, for the second quarter, Net loss totalled $3.57 billion relative to a profit of $2.76 million booked in 2019.

Net loss attributable to shareholders amounted $5.10 billion, relative to a profit of $688.87 million for the comparable period in 2019. However, for the second quarter, net loss attributable to shareholders closed at $2.34 billion (2019: $5.70 million).

The loss per share (LPS) for the six months closed at $2.28 (2019 EPS: $0.31), While, the loss per share for the quarter amounted at $1.041 (2019 LPS: $0.003). The trailing twelve-month LPS is $2.60.  The number of shares used in our calculations was 2,243,005,125. As at August 18, 2020, the stock traded at $7.75.

Balance Sheet Highlights:

The Company, as at June 30, 2020, recorded total assets of $43 billion, decrease of 16% when compared to $51.07 billion recorded in the prior year. This decrease was due to a 26% decrease in ‘Investment in Associate’ to 21.67 billion ($2019: $29.48 billion).

Total Stockholders’ equity as at June 30, 2020 closed at $30.21 billion, a 21% decrease from the $38.05 billion for the corresponding period last year. This resulted in a book value of $13.47 (2019: $16.96).


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