Kelsian Group shares plunge 20% on HY profit decline
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The news: Kelsian Group shares tanked in early trade after the bus and ferry operator reported a 29% drop in first-half net profit, driven by subdued demand in its marine and tourism business.
The numbers: Kelsian shares were down 20.3% to $2.89 at 11:20 am AEDT, extending a 12-month decline of around 55%.
The company, formerly known as SeaLink Travel Group, reported a first-half net profit of $20.1 million — down 28.6% year on year. It declared an interim dividend of 8 cents per share, in line with a year ago.
The context: Kelsian's outgoing CEO Clint Feuerherdt said that its marine and tourism segment experienced subdued demand during the period. The decline was sharpest in K'gari, where occupancy fell below the prior corresponding period and domestic and international visitor numbers remained below pre-Covid levels.
Despite this, the company reiterated its full-year outlook, forecasting underlying earnings (EBITDA) of between $283 million and $295 million, skewed to the second half.
The source: ASX
