March 8, 2018
Total Revenue for the year ended December 31, 2018 grew 29% to $13.11 billion (2016: $10.25 billion). For the fourth quarter ended December 31, 2017, the company’s total revenue however increased 56% to close at 3.04 billion (2016: $1.95 billion)
Hotel revenue for the 2017 year end increased to $10.27 billion relative to $8.46 billion in 2017. Management indicated, “Improvement in the hotels’ Occupancy and Average Daily Rates (ADR) fuelled by on-going renovation of the properties. “ Net capital gains on financial assets and liabilities increased by 61% to close at $2.84 billion (2016: $1.77 billion). Interest Income increased 42% to close at $59.89 million (2016: $42.29 million), while net investment property expense for the year amounted to $165.99 million compared to $16.79 million in 2016.
Operating Expenses rose 20% to $10 billion (2016: $8.33 billion). Hotel expenses increased 17% from $6.52 billion in 2016 to $7.62 billion for 2017. Depreciation closed the year at $813.22 million (2016: $491.32 million). Interest expense for the period rose by $221.13 million to end the year at $1.51 billion (2016: $1.29 billion). SJ incurred other operating expenses for the year of $53.58 million relative to $22.96 billion booked in 2016. Operating expenses increased 39% to close the fourth quarter at $2.76 billion relative to $1.99 billion for the comparable period in 2016.
Consequently, Profit before Tax improved to $280.30 million compared to a loss of $37.42 million a year earlier. Following tax charges of $268.23 million (2016: $239 million), Net Profit increased 62% to $2.74 billion, up from $1.69 billion for the comparable period in 2016. For the fourth quarter Net Profit surged to close at $379.33 million versus a profit of $3.57 million for the corresponding quarter of 2016. Notably, XFUND recorded tax credits of $99.03 million for the fourth quarter of 2017 compared to a tax credit of $40.99 million.
The earnings per share (EPS) for the year end closed at $1.22 (2016: $0.75), while EPS for the quarter amounted to $0.169 (2016: $0.002). The number of shares used in our calculations was 2,243,005,125.
Balance Sheet Highlights:
The company, as at December 31, 2017, recorded total assets of $47.69 billion, an increase of 8% when compared to $44.36 billion recorded in the prior year. The main driver for the increase was current asset which closed at $4.13 billion relative to $2.47 billion in 2016. Receivables as at December 31, 2017 moved from $825.47 million in 2016 to $2.16 billion . Securities purchased under agreement to resell amounted to $636.89 million relative to nil in 2016. Investment property as at the end of the 2017 financial year totaled $2.04 billion compared to $1.17 billion recorded for 2016.
Total Stockholders’ equity as at December 31, 2017 closed at $22.69 billion, a 14% increase from the $19.90 billion for the corresponding period last year. This resulted in a book value of $15.17 (2016: $13.31). A total of 2,243,005,125 shares were used in the calculation.
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.