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 |
|
|
|
|
|
||
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