LOGIN
REQUEST WALKTHROUGH
search
times
New call-to-action

Tags

See all

Articles

SLK

Sea Link Travel Group Reports 1H FY20 Results

Max Molinari

Max is an Equity Analyst with ASR Wealth Advisers. He has studied a Bachelor of Business and a Bachelor of Laws at the University of Technology, Sydney. Max currently holds RG146 qualifications.

Sea Link Travel Group (ASX: SLK) announced their 1H20 results this morning, however as the acquisition of Transit Systems Group was completed on 16th Jan 2020 the results are not reflective of combined group performance. First half performance for SLK was roughly in line with consensus with EBITDA of $26.1m.

 

slk

Sea Link Travel Group (ASX: SLK) has reported their first half financials for FY20 this morning. The company reported EBITDA of $26.1m – roughly in line with consensus expectations. This comes despite the January acquisition of Transit Systems Group not being reflected in the performance. (Credit: SeaLinkTravelGroup).

 

SLK has provided an update regarding bushfires and the coronavirus, with the bushfires affecting vehicle, passenger and touring numbers. COVID 19 has had an impact on Captain Cook Cruises, though China represents less than 4% of tourism revenue – and now less than 1% of total Group revenue after Transit Systems acquisition. The combined impact on 2nd half EBITDA is expected to be $5 million.

As SLK has transitioned from 67% revenue from tourism to 15% after the Transit Systems acquisition the results reflect that the business is largely unaffected by the bushfires and coronavirus.

SLK’s earnings remains a defensive in nature – mostly from contracted revenue for commuter transport, which is expected to grow to around 5.5% dividend yield in FY22 as the acquisition of Transit Systems and synergies are fully realised.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

 

New call-to-action
New call-to-action

Company Articles

Looking for more Stock Recommendations?

Fill in your details to receive our special report: Top 3 Income Stock Recommendations for 2020.