2012 annual y/e 30/12/12, page-3

Yes, thought the results were very good.

Admit, it would be nice to clear up what is happening with the licences, but Beijing in control there.

Here are some things that stood out to me, when slicing and dicing the figures for what if really just a HY compared to a FY.

Selling and promotional costs were high, nearly as high as the full year, so they obviously invested some cash, but it also resulted in good revenue uplift, albeit hard to tell exactly where the money was spent and where the results were generated.

SmartPass
The standout point for me here was the CURRENT balance on $335m which was generated by strong sales leading into Chinese New Year. Now if you read the fine print of Note 11, you will see the amount at Balance Date was actually $270.887m (up from $219m in June), so you can see really good growth in this capital base, which in turn generates higher interest income off the float. That extra $60m generated from Jan 1 till today, will be increasing revenue 'potential' depending on how quickly they spend the cards. Let's hope the growth trajectory on this continues, as will either generate more income, or a higher sale price!!!

Buffet Club
Good growth here as evident in the numbers, let's hope that continues in the new FY, also with Enjoy Shanghai and the e-commerce adding other strings to the revenue bow.

This is a slow burner, but making very solid progress at this point.