ASX 200 up, Zip rises, Aristocrat Leisure reports

The S&P/ASX 200 Index (ASX:XJO) went up by 0.2% today. Zip Co Ltd (ASX:Z1P) revealed some acquisitions, sending the share price higher.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.2% today to 7,046 points.

Here are some of the highlights from the ASX:

Zip Co Ltd (ASX: Z1P)

The Zip share price rose around 1% today after revealing some global acquisitions.

It’s buying the European buy now, pay later (BNPL) provider Twisto Payments and it has also entered into an agreement to acquire the Middle East, UAE-based BNPL leader Spotii.

Zip said these strategic transactions will enable it to respond to the increase demand from merchants for a single global BNPL solution across multiple markets with a consistent global service quality.

The ASX 200 BNPL business already owns some shares of these two businesses, so whilst they are worth $180 million, the transactions will cost a combined amount of $160 million.

Twisto has over 1 million customers that have transacted on the platform with an annual run-rate of $12 million revenue and $230 million total transaction value (TTV) as well as 14,000 merchants. Some merchants include Pizza Hut, Gap and Under Armour.

Spotii is operational in both the Kingdom of Saudi Arabia and UAE. It’s poised to expand further in the region.

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price was flat after reporting its FY21 half-year result.

The ASX 200 business said that its operating revenue fell by 1% to $2.23 billion. Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 6% to $750.3 million. It also reported that normalised net profit after tax (NPAT) rose by 18.4%.

However, looking at the reported result, profit after tax fell 73.5% to $346.5 million. The reported result for the prior corresponding period included the significant item of a deferred tax asset of approximately $1.1 billion which is expected to generate long-term cash tax savings.

Aristocrat Leisure CEO and managing director Travor Croker said:

The results are reflected in the share growth and margin expansion achieved across digital and key gaming segments in the six months to 31 March 2021 and the double-digit increased it normalised NPATA delivered in the same period.

We expect uncertain and volatile conditions to continue near term, and we are closely monitoring key factors including consumer sentiment and gaming venue patronage.

Nevertheless, we enter the second half of fiscal 2021 with excellent momentum, resilience and confidence with a strong balance sheet to continue to invest organically to grow share and accelerate growth through M&A in line with rigorous criteria.  

New Hope Corporation Limited (ASX: NHC)

The New Hope share price rose by by 0.4% today after giving its quarterly update.

The coal miner reported that its total saleable coal production for the three months to 30 April 2021 was down 3.3%. For the nine months to April 2021, total saleable coal production was down 20.4%.

It generated EBITDA of $101 million with “strong” cash generation for the quarter resulting from consistent production combined with improved realised prices. The Newcastle coal price has increased by 78% since September 2020. The mining company expects pricing will continue to improve, the company is well placed to finish the year with a solid financial result. Increased economic activity in Asia and cooler than expected temperatures has translated into stronger pricing and demand.

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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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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