The S&P/ASX 200 Index (ASX: XJO) dropped by 0.8% to 6,120 points.
There were a number of interesting reports today:
Idp Education Ltd (ASX: IEL)
International education business IDP Education announced its FY20 result. It said that its total revenue fell by 2% to $587.1 million. In constant currency terms, revenue dropped by 5%.
IDP Education's earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 29% to $148.6 million and earnings before interest and tax (EBIT) increased by 11% to $107.8 million. Net profit after tax (NPAT) rose by 2% to $67.8 million.
No final dividend was declared but the interim dividend of 16.5 cents per share which was declared six months ago will be paid on 24 September 2020.
The IDP Education share price went up 28.5% today. It was the top performer in the ASX 200.
Webjet Limited (ASX: WEB)
Webjet also announced its FY20 result.
The travel business said that its total transaction value (TTV) fell by 21% to $3 billion. Revenue declined 27% to $266 million.
The Webjet EBITDA declined by 171% to a loss of $91.3 million. Underlying EBITDA, excluding one-offs, fell 80% to $26.4 million.
Reported NPAT dropped 338% to $143.6 million. Underlying NPAT fell 168% to a loss of $42.3 million. In FY20 it saw a number of one-off items totalling $117.7 million, of which $78 million were booked in the second half. A total of $40 million of debtors were written off, $14.6 million was associated with the closure of Webjet Exclusives and $20 million was for the impairment of intangibles relating to the closure of Online Republic Cruise.
Webjet said that it enacted a number of cost cutting measures that helped reduce costs by around 50% after COVID-19 hit.
The company is hoping and expecting that domestic travel will recover faster than international travel due to the timing of border openings.
The Webjet share price fell 12.5%, it was the worst performer in the ASX 200.
Wesfarmers Ltd (ASX: WES)
Wesfarmers announced its FY20 result today. It was pretty mixed.
There were a number of one-offs amounting to $435 million pre-tax which affected the statutory result this year. There was restructuring actions in Kmart Group, impairments in Target, as well as the industrial and safety group. Those one-off negatives were partially offset by the gains on the sale and revaluation of Wesfarmers' Coles Group Limited (ASX: COL) shares.
Wesfarmers revealed its numbers for continuing operations, excluding the above significant items (and pre-AASB 16 to provide a like-for-like comparison).
Revenue was up 10.5% to $30.85 billion.
The ASX 200 company's EBIT (after interest on lease liabilities) fell by 0.3% to $2.96 billion. NPAT increased by 8.2% to $2.1 billion. Bunnings was the key performer with 13.9% revenue growth to $15 billion and EBIT growth of 13.9% to $1.85 billion.
Wesfarmers' full year ordinary dividend was down 14.6% to $1.52. The company also declared a special dividend of $0.18 per share after the further sale of Coles shares.
Medibank Private Limited (ASX: MPL)
The private healthcare business reported its FY20 result. It said that its revenue from external customers increased by 1.7% to $6.77 billion. Premium revenue increased by 1.3%, however, the net claims expenses increased by 3.2% to $5.5 billion.
Its continuing group operating profit fell by 12.8% to $461 million after a reduction of its health insurance operating profit.
Management expenses at the ASX 200 business decreased by 3% to $543.4 million. That represented a management expense ratio of 8.3%, down from 8.7% in the prior year.
Net investment income plunged 97.7% to $2.4 million because of the huge COVID-19 related market selloff.
Continuing net profit fell 27.9% to $315.6 million driven by the lower health insurance profit and the lower net investment income.
Medibank's FY20 total dividend payment per share was 12 cents, which was an 8.4% decline. However, its dividend payout ratio increased from 80% to 90%.
In FY21 the company is aiming to achieve market share growth and increase its total policyholders by more than 1% – assuming a flat market. It's targeting $20 million of productivity savings in FY21 and an additional $30 million during FY22 to FY23.
