AMTD Digital Recorded Solid Half Yearly Performance

Rhea-AI Summary

AMTD Digital Inc. reported solid financial performance for the six months ended October 31, 2023, despite global economic challenges. The company generated revenue of US$8.7 million, with significant gains from fair value assets and other income. Board members expressed cautious optimism for future growth.

Positive

• Strong financial performance with revenue of US$8.7 million.

• Significant gains from fair value assets and other income.

• Board members express cautious optimism for future growth.

Negative

• Decrease in revenue compared to the same period in the prior year.

• Increased finance costs and other expenses impacting profitability.

• Rising geopolitical uncertainties affecting global economic conditions.

PARIS & NEW YORK--(BUSINESS WIRE)-- AMTD Digital Inc. (“AMTD Digital” or the “Company”, NYSE: HKD), a NYSE-listed company and also a comprehensive digital solutions and global hospitality and VIP services platform headquartered in France, today announced its unaudited financial results for the six months ended October 31, 2023.

Highlights of Half Year Financial Results

• During the six months ended October 31, 2023, despite the global economic slowdown and rising geopolitical uncertainties which led to volatile world markets, the Company demonstrated strong resilience and achieved solid financial performance.
• We generated US$6.9 million in revenue from hotel operations, hospitality and VIP services after the injection of AMTD Assets Group into the Company.
• Fair value gain on financial assets measured at fair value for the six months ended October 31, 2023 amounted to US$16.3 million.
• We recorded other gains of US$14.3 million as a result of disposal of certain subsidiaries for the six months ended October 31, 2023.

Statements from the Board Members:

Dr. Timothy Tong, the Chairman of the board of directors and an independent director of AMTD Digital, commented, “Similar to the year before, the six-month period that ended on October 31, 2023 was filled with challenges. Although the COVID pandemic has officially ended, the global economy in the post-COVID period has yet to fully recover. Geopolitical tensions around the world continue to post serious uncertainties about investments in all sectors of the economy. I thank the management team and continue to be cautiously optimistic about the prospect for future performance growth of AMTD Digital.”

Ms. Joanne Shoveller, the Co-Chair of the board of directors and an independent director of AMTD Digital, commented, “The AMTD Digital strategy in diversifying assets and timing of strategic decisions has resulted in these strong interim results and a resilient, innovative and exciting foundation for future growth. The AMTD Digital board of directors expresses their appreciation to the leadership team for their hard work and impressive results.”

Financial Results for the Six Months Ended October 31, 2023 Revenue

Our revenue for the six months ended October 31, 2023 was US$8.7 million as compared to US$13.9 million for the six months ended October 31, 2022. Hotel operations, hospitality and VIP services income was US$6.9 million and has become a new revenue driver for us after the successful acquisition of AMTD Assets Group, the real estate arm of AMTD Group Inc., focusing on and specializing in hospitality and lifestyle concepts globally.

Employee benefits expenses

Staff costs for the six months ended October 31, 2023 decreased by 18.2% as compared to the same period in prior year to US$3.1 million. This was due to the tightened cost control in connection with the global economic slowdown and rising geopolitical uncertainties.

Premises and office expenses

Premises and office expenses for the six months ended October 31, 2023 increased by 208.5% as compared to the same period in prior year to US$1.5 million. This was due to the incremental costs attributable to the post-acquisition operations of AMTD Assets Group.

Depreciation and amortization

Depreciation and amortization for the six months ended October 31, 2023 increased by 407.6% as compared to the same period in prior year to US$2.1 million, primarily attributable to the hotel properties of AMTD Assets Group.

Finance costs

Finance costs for the six months ended October 31, 2023 increased by US$3.4 million as compared to the same period in prior year, primarily attributable to the incremental borrowings by the Company, and due to the consolidation of AMTD Assets Group which had outstanding bank loans to finance the underlying real estate properties.

Other expenses

Other expenses for the six months ended October 31, 2023 increased by 821.5% as compared to the same period in prior year to US$4.6 million, primarily attributable to (i) the addition of hotel operation expenses of US$2.8 million incurred by AMTD Assets Group, and (ii) the share of losses of joint ventures of US$1.4 million.

Change in fair value on financial assets measured at fair value through profit or loss (“FVTPL”)

Change in fair value on financial assets measured at FVTPL for the six months ended October 31, 2023 was US$16.3 million, primarily attributable to the realisation from gain of entertainment projects during the period.

Other Income

Other income increased by 85.3% as compared to the same period in prior year to US$9.0 million, primarily due to (i) an increase in bank interest income as the Company had generated additional interest income from deposits with banks, and (ii) an increase in the net average outstanding balance due from our ultimate holding company, which was interest bearing.

Income Tax Expense

Income tax expense for the six months ended October 31, 2023 increased by 15.1% as compared to the same period in prior year to US$2.0 million, primarily due to an increase in tax assessable income.

Profit For The Period

Profit for the six months ended October 31, 2023 increased to US$30.1 million.

About AMTD Digital Inc.

AMTD Digital Inc. (NYSE: HKD) is a comprehensive digital solutions platform headquartered in France. Its one-stop digital solutions platform operates four main business lines including digital solutions services, digital media, content and marketing services, digital investments as well as hospitality and VIP services. It is the fusion reactor at the core of the AMTD SpiderNet ecosystem and empowers and integrates the various digital businesses within its ecosystem. For AMTD Digital’s announcements, please visit https://ir.amtdigital.net/investor-news.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about the beliefs, plans, and expectations of AMTD Digital Inc. are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the filings of AMTD Digital Inc. with the SEC. All information provided in this press release is as of the date of this press release, and AMTD Digital Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

AMTD DIGITAL INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED OCTOBER 31, 2022 AND 2023
	Six months ended October 31,
	2022			2023
	US$’000			US$’000
	(Unaudited)			(Unaudited)
Revenue from contracts with customers	13,918			8,677
Employee benefits expenses	(3,761	)		(3,075	)
Advertising and promotion expense	(318	)		(177	)
Premises and office expenses	(482	)		(1,487	)
Legal and professional fee	(1,199	)		(1,339	)
Depreciation and amortization	(421	)		(2,137	)
Finance costs	-			(3,404	)
Other expenses	(498	)		(4,589	)
Changes in fair value on financial assets measured at fair value through profit or loss (“FVTPL”)	351			16,287
Other income	4,852			8,992
Other gains and losses, net	(42	)		14,349
Profit before tax	12,400			32,097
Income tax expense	(1,731	)		(1,992	)
Profit for the period	10,669			30,105
Profit (loss) for the period attributable to:
- Owners of the Company	11,086			31,889
- Non-controlling interests	(417	)		(1,784	)
	10,669			30,105
Earnings per share
- Basic (US$)	0.15			0.41
- Diluted (US$)	0.15			0.41

AMTD DIGITAL INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT APRIL 30, 2023 AND OCTOBER 31, 2023
	As of April 30,			As of October 31,
	2023			2023
	US$’000			US$’000
	(Audited)			(Unaudited)
ASSETS
Non-current assets:
Property, plant and equipment	238,600			175,112
Intangible assets	311			279
Financial assets at FVTPL	5,170			288
Interests in joint ventures	98,092			90,652
Total non-current assets	342,173			266,331
Current assets:
Accounts receivable	9,803			934
Prepayments, deposits and other receivables	7,678			35,827
Amount due from AMTD Group	126,444			195,278
Amount due from a non-controlling shareholder	539			-
Financial assets at FVTPL	9,243			5,723
Fiduciary bank balances	785			913
Cash and cash equivalents	152,930			134,843
	307,422			373,518
Assets classified as held for sale	12,081			79,947
Total current assets	319,503			453,465
Total assets	661,676			719,796
EQUITY AND LIABILITIES
Current liabilities:
Clients’ monies held on trust	428			814
Accounts payable	493			69
Other payables and accruals	3,253			18,913
Bank borrowings	15,000			15,000
Amount due to a non-controlling shareholder	53,803			53,389
Contract liabilities	10,162			-
Income tax payable	4,571			2,638
	87,710			90,823
Liabilities associated with assets classified as held for sale	1,030			17,912
Total current liabilities	88,740			108,735
Non-current liabilities:
Bank borrowings	50,803			50,565
Contract liabilities	1,031			-
Total non-current liabilities	51,834			50,565
Total liabilities	140,574			159,300
Capital and reserves:
Share capital	8			8
Treasury shares	(52,235	)		(52,235	)
Reserves	510,174			562,859
Equity attributable to owners of the Company	457,947			510,632
Non-controlling interests	63,155			49,864
Total equity	521,102			560,496
Total equity and liabilities	661,676			719,796

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240430271195/en/

For AMTD Digital Inc.:

IR Office

EMAIL: ir@amtdigital.com

Source: AMTD Digital Inc.

FAQ

<p>What was AMTD Digital's revenue for the six months ended October 31, 2023?</p>

AMTD Digital reported revenue of US$8.7 million for the period.

<p>Who are the board members of AMTD Digital?</p>

The board members include Dr. Timothy Tong and Ms. Joanne Shoveller.

<p>What caused the increase in finance costs for AMTD Digital?</p>

The increase in finance costs was primarily due to incremental borrowings and consolidation of AMTD Assets Group.