ASX 200 dips, EML soars after reporting, Appen sinks

The S&P/ASX 200 Index (ASX:XJO) fell by 0.5% today. The EML Payments Ltd (ASX:EML) share price soared after reporting.

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The S&P/ASX 200 Index (ASX: XJO) fell by around 0.5% today to 6,885 points.

It was one of the busiest days of reporting season so far, with some major movements in both the gains and declines sections of the market.

Here are some of the highlights from today:

EML Payments Ltd (ASX: EML)

The EML share price was the best performer in the ASX 200 today after it reported its FY21 half-year result.

It reported that gross debt volume (GDV) increased by 54% to $10.2 billion, which drove revenue higher by 61% to $95.3 million.

The earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 42% to $28.1 million and underlying net profit rose 30% to $13.2 million. The ASX 200 share also reported underlying operating cash inflows grew by 68% to $35.1 million.

EML re-instated its EBITDA guidance range, it’s expecting EBITDA to be between $50 million to $54 million (up 48% to 56%) for FY21 whilst underlying net profit is expected to be between $30 million to 33.5 million (up 25% to 40%).

The company ended the period with $136.5 million of cash.

Webjet Limited (ASX: WEB)

The Webjet share price rose by 5% today after the travel business reported its FY21 half-year result.

The ASX 200 travel business reported that its total transaction value (TTV) was down 89% to $267 million because of COVID-19 impacts. Revenue declined by 90% to $22.6 million.

A focus on expenses and reducing the cash burn saw underlying costs fall 52% to $62.7 million. The monthly cash burn is down to $4.8 million, the company had a cash balance of $283 million.

Reducing costs by around half wasn’t enough to stop underlying EBITDA plunging to a loss of $40.1 million. The underlying net loss was $60.5 million, with the statutory net loss being $132.2 million which included a number of non-cash items.

Webjet revealed that its online travel agency (OTA) business has returned to profitability due to its focus on the domestic leisure market and the ability to utilise its variable cost base.

Rio Tinto Limited (ASX: RIO)

The big ASX 200 miner reported its FY20 result this afternoon.

It reported that it generated US$15.9 billion of net operating cashflow, an increase of 6%. Rio Tinto also made US$9.4 billion of free cashflow, up 3%. Net earnings rose 22% to US$9.8 billion.

The high level of profit and cashflow allowed Rio Tinto to declare a 26% increase to the annual dividend to US$5.57 per share. It also declared a special dividend worth US$0.93 per share for investors. Including the special dividend, the FY20 dividends represented a 72% dividend payout ratio.

Rio Tinto was also able to reduce its net debt by US$3 billion to US$0.7 billion during the year.

Heavy declines in the ASX 200

There were some big declines today in the ASX 200.

The worst performer was the Zip Co Ltd (ASX: Z1P) share price which fell 14% after yesterday’s price query from the ASX.

Gold miner Evolution Mining Limited (ASX: EVN) suffered a 10% share price decline after reporting its result.

The Appen Ltd (ASX: APX) share price fell more than 9% after it was on the receiving end of a negative broker report.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends EML Payments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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