APT (ASX) Ann: H1 FY21 Results Presentation

Originally posted by bedger: ↑

Utter rubbish. Netflix reports profits yearly and has done for years. It had a little down turn in 2015 when it went negative net income. I should know I am short Netflix too. The sad thing is people believe all these rubbish growth hype narratives, which are just opinion, often backed by complete ignorance, as your Netflix comment shows. Seriously reckless comments on Hot Copper. Its one thing to have bias, another to just make up complete rubbish.

So lets get back to the real figures.

APT reported total group income of $417 million (really wish they'd call it revenue so not to confuse you guys) and a net loss after tax of $79 million.

As I posted days ago, expectations were around $440-460million for revenue, $10-20 million for profits (net income). For example, Morgans were expecting "1H21 revenue of A$473m...and 1H21 NPAT of A$5m".

So at least a 5% miss on revenue expectations and a big miss on profit expectations with an $80 million loss. That's a big figure against group revenues of $417 million. It fortunate the stock is closed and ASX200 index traders will be having a nightmare with the 12th biggest stock in the country closed in an up market on the US - APT ADR was essentially unchanged there before results, despite US move up.

I will irk holders of APT. The underlying sales growth is impressive, but we knew all that and this stock has blown from $80 to $150+ on that. This is not a good result versus expectations. The figures are right there in black and white.

Net loss as a percentage of revenue was 16.4% in 1H20 (36M/220M). Its actually getting worse at 17.1% on these results (72M/420M). ....and before the usual personal attacks, I expected APT to announce a small profit today - the market did generally. This really is a very surprisingly large loss and worrying from a business perspective that they are growing revenue so impressively but still losing money - valuation arguments aside.

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A big part of that net loss is the impact of clearpay performing ahead of expectations on a financial instrument - if you back out the ~ $65m it tells a different story