The share price of ASX communications company, Frontier Digital Ventures Ltd (ASX: FDV) has wobbled over the last 2 sessions after it announced that its profits more than doubled last year.
For those unfamiliar with the company, it specialises in providing online marketplaces and property and automotive verticals in emerging regions.
The Frontier Digital Ventures share price slumped after the company's earnings for 2021 were released yesterday. It ended Thursday's session 5.86% lower at $1.20.
However, it's getting back on the horse today. At the time of writing, the Frontier Digital Ventures share price is $1.24, 2.49% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) tumbled 2.9% yesterday. It's recovering slightly today, recording a 0.2% gain.
What's driving this ASX communication share this lately?
The Frontier Digital Ventures share price has had a wobbly performance on the ASX after releasing its full year earnings for 2021. Here are its statutory results:
- Revenue of $51.4 million – 147% more than that of 2020
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of $5.6 million – down from last year's loss of $3.8 million
- After tax loss of $15.1 million – down from last year's approximately $13.2 million loss
- Earnings per share (EPS) came to a 4.4 cent loss – last year brough an EPS loss of 4.78 cents
On the company's results, its founder and CEO Shaun Di Gregorio noted "the difficulties in interpreting [the company's] statutory results given [its] mix of consolidated and equity accounted investments".
He pointed investors to look at the company's portfolio view of its results, instead.
They show revenue of $60.2 million – a 154% increase.
Additionally, the company's portfolio EBITDA came to $1.9 million – an increase of $1.3 million on the prior year's and a new record.
Over 2021, Frontier Digital Ventures recognised 383 million users across its portfolios and 1,253 million sessions.
The company also reported an unrealised currency exchange gain of $8.5 million for the period, compared to 2020's unrealised currency exchange loss of $10.2 million.
What else happened during the half?
2021 was a busy period for the ASX communication share.
It acquired the remaining 43.7% interest in the Moroccan car marketplace, Moteur.ma in January and, in February, announced its acquisition of Chilean auto and real estate classifieds Yapo.cl.
Its acquisition of Yapo cost the company around $24 million.
It was a similar story in June and July when it fully acquired both Infocasas – the leading property portal in Uruguay, Paraguay, and Bolivia – and Encuentra24 – a general marketplace in 5 Latin American markets.
Frontier Digital Ventures also underwent a capital raise last year, bringing in $53.9 million after offering new shares for $1.50 apiece.
The Frontier Digital Ventures share price gained 4.7% over 2021.
What did management say?
Gregorio commented on the company's earnings for 2021, saying:
We are thrilled to report the ongoing growth of the portfolio across 2021 …
We are delighted with the performance of our key operating companies, as they leverage their market leadership positions to grow transaction revenues and enhance their long-term earnings profile.
In particular, the performance of Zameen and InfoCasas provide our other operating companies with the blueprint for high growth transactional marketplaces.
What's next for the ASX communication share?
The company didn't provide guidance for 2022.
However, it did say it's continuing to explore ways to maximise value for shareholders.
Frontier Digital Ventures share price snapshot
The ASX communications company's share price has struggled through 2022 so far.
It's currently 20% lower than it was at the start of this year. It's also 13% lower than it was this time last year.
