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WiseTech Global Ltd (ASX: WTC) selldown
WiseTech announced today that WiseTech founder & CEO Richard White and co-founder & executive director Maree Isaacs have sold shares.
Mr White said that the share sales are part of a trading program, which has trading limits to reduce market impact. Mr White said he’s selling down a minor portion of his shareholding to increase liquidity in WiseTech’s shares and increase his diversification.
By the end of this trading program, Mr White expects to have voting control of about 45% of the company.
WiseTech reminded investors that since listing, Mr White had only sold shares once prior to the WiseTech listing. He remains the largest shareholder and is still committed as a long term shareholder.
Between 22 June to 26 June 2020 Mr White sold around 225,000 shares for $5 million. He then sold another 2.45 million shares for $45 million. Between 27 August to 2 September 2020 he sold shares valued at around $10.4 million.
SKYCITY Entertainment Group Limited (ASX: SKC) FY20 report
NZ casino business SkyCity reported its FY20 result today, the difference between reported and normalised results is explained here.
Reported revenue grew by 36.8% to $1.125 billion, reported EBITDA (click here to learn what EBITDA means) grew 16.9% to $348.3 million and reported net profit grew by 62.8% to $235.4 million.
Normalised revenue fell 24.3% to $779.5 million, normalised EBITDA dropped 37.7% to $200.7 million and normalised net profit fell 59.7% to $66.3 million.
The normalised EBITDA and net profit was at the top end of its guidance provided when it did a capital raising a few months ago. The reported result was up a lot due to the NZICC fire accounting and the gain on the Auckland car park sale, though these positives were offset by the $150 million impairment of the Adelaide casino licence. Insurance recovery for the fire amounted to $337 million.
Local EBITDA for the eight months to 29 February 2020 was up around 5% on a like for like basis. The business had generated decent growth before COVID-19 struck.
Thankfully, the NZ wage subsidy and the Aussie jobkeeper helped mitigate the impact of property closures and limited number of international customers.
The online casino business, based in Malta, saw trading ramp up significantly during the COVID-19 period. There were over 35,000 customer registrations at 31 August 2020 and EBITDA was positive every month from April 2020.
In terms of an outlook, its domestic businesses have recovered more strongly than anticipated. Auckland had returned to pre-COVID-19 levels and Hamilton is ahead. There is a significant improvement in operating margins as it benefits from cost savings.
Skycity said EBITDA and cashflow is “materially ahead of expectations”. Adelaide is EBITDA and cashflow positive since reopening. The NZ online casino saw a slight reduction in revenue after the re-opening of NZ properties, however, trading continues to be positive.
In FY21 the company is expecting normalised EBITDA to be above FY20, but below pre-COVID-19 and below FY19 levels. It couldn’t provide guidance due to uncertainty.
Other news
The team over at Rask Media have covered the rest of today’s news, so make sure you head over there for more ASX share market coverage.
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