Entertainment, hospitality and leisure company Amalgamated Holdings Limited (ASX: AHD) owns a range of appealing assets including the Thredbo Alpine Resort, the Rydges hotel brand, and the Event cinema brand.
Yesterday, Amalgamated released its full year results for the year ending June 30 2015.
The market cheered the announcement with the share price rallying 7.4% on Thursday.
Driving the result was earnings growth in the Entertainment division (which houses the Cinema business) with a number of blockbuster films helping to drive earnings up 31% to $112 million.
Meanwhile, an outstanding ski season at Thredbo – which led to skier number growth of 13% – drove a 105% lift in divisional earnings.
Also impressive were the solid gains achieved in the Hotel business which reported a 26% increase in earnings thanks in part to the company's strategy to diversify into other hotel brands.
A final dividend of 37 cents per share (cps) has been declared which is inclusive of an 8 cps special dividend. The stock will trade ex-dividend on September 1 and shareholders can expect to receive payment on September 17.
The strong result from Amalgamated suggests the entertainment industry could enjoy a tailwind and bodes well for investors not just in Amalgamated but also in industry peers such as Mantra Group Ltd (ASX: MTR), which operates a large number of hotels and Village Roadshow Ltd (ASX: VRL) which is a major cinema operator.
With Amalgamated acquiring the Museum Art Hotel in Wellington in June for NZ$28.5 million and the benefit the company stands to gain from a weaker Australian dollar, the growth potential for the current financial year remains appealing.
