Amalgamated Holdings Reports a Slow Start to Fiscal 2014

At its annual general meeting, Amalgamated Holdings reported a soft first-quarter fiscal 2014. Net profit after tax, or NPAT, for the quarter declined 37% during the same period of the prior year as its cinema exhibition segments suffered from a weak line-up. Germany alone accounted for approximately 60% of the NPAT decline. Compounding the weak cinema performance, the Thredbo ski resort suffered from one of the worst ski seasons in 25 years compared with excellent skiing conditions in the prior year. The hotel segment was more positive with the new QT brand driving growth off a low base, while the Rydges brand was relatively flat. While first-quarter fiscal 2014 was disappointing, we are cautious about extrapolating this trend for the full year. Cinema earnings can vary significantly from quarter to quarter depending on the line-up and a number of films scheduled for release in the second and third quarters of fiscal 2014 are expected to perform strongly, including the second instalments of The Hunger Games and The Hobbit film franchises. A number of new hotel openings should also drive growth for fiscal 2014.