Datapulse Technology (BKW) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose to $4.469m from $1.921m, while net loss narrowed to $1.171m from $3.306m. Hotel operations led the recovery as travel restrictions eased.

• Net cash was $11.877m at 31 July 2023, with bank borrowings of $1.520m; no FY2023 dividend was recommended because of the loss position and cash-conservation priorities.

• Entry onto the SGX Watchlist took effect on 6 June 2023. South Korean hospitality recovery is expected to continue, though operating and macroeconomic risks persist.

Financial highlights

• Revenue was $4.469m versus $1.921m in FY2022; hotel operations contributed $4.068m of FY2023 revenue.

• Net loss was $1.171m, compared with $3.306m; loss before tax was $1.390m versus $3.342m.

• Basic and diluted loss per share improved to 0.53 cents from 1.51 cents.

• Other comprehensive income included a $1.460m gain on equity investments designated at FVOCI, partly offset by $1.138m of foreign currency translation losses.

• A $219k income tax credit included a $151k deferred tax benefit from previously unrecognised tax losses.

Outlook and guidance

• South Korean hospitality is expected to recover further as Chinese group tours resume following the lifting of travel restrictions in August 2023.

• Foreign exchange risk, inflationary cost pressures, manpower shortages and geopolitical tensions remain challenges to the recovery.