With the holiday season upon us soon, investors who would like to double-dip and enjoy a holiday and good shareholder returns, have a wide variety of companies to choose from. Could planning a good portfolio be just as fun as planning a trip?
SkyCity Entertainment Group (ASX: SKC) operates hotels and gaming venues under the SKYCITY brand in Auckland, Adelaide and Darwin, as well as the Horizon international business for private gaming salons.
It has been raising its net profit after tax and abnormals since 2010 from $82.7 million to $107.3 million, and in 2013 had a return on equity of 16.7%. Over the past year its share price has gone up by 16% to $3.39.
Crown Resorts (ASX: CWN) has been the best performing casino operator by share price, up 65% in the past 12 months. Looking back from 2010, reported NPAT was up 35.4% with return on equity of 13.4%.
Crown has a lot of development plans overseas and domestically, and it will require large amounts of capital to complete, so only the final revenues of those new resorts will tell how much of a return shareholders themselves will pocket.
For taking the whole family out for some fun, investors can look at Ardent Leisure Group (ASX: AAD), which owns theme parks like Dreamworld, Whitewater World, as well as Kingpin and AMF bowling centres, and family entertainment centre Main Event in the US.
Its net profit margin in 2013 was 11.9% and over the past 3 years its reported NPAT was up from $17.8 million to $35.6 million. Since November 2012, its share price has increased 42% to $2.00.
Lastly, to jet off to your dream vacation, Flight Centre (ASX: FLT) could have booked your flight and sent your shares in the company soaring with its 84% rise from $27.41 to its current $48.80 per share this past year.
Reported NPAT is up 75.9% since 2010, and its return on equity was 23.95 in 2013.
Foolish Takeaway
This industry is probably the most fun to investigate and research since you can experience the businesses yourself, and see how many other customers are doing the same.
If you think travelling and holidays are expensive, then possibly becoming a shareholder in a leisure industry company may be one way to get your cash back as your portfolio grows with them. With the economy improving, more people will feel they have extra money to spend, and they will be lining up to enjoy their holidays. Enjoy it with them!
