Fiscal 2014 a Flop, but Can Amalgamated Holdings Deliver a Blockbuster in Fiscal 2015?

We review Amalgamated Holdings prior to the release of its fiscal 2014 result in August. Of its four main segments, Cinema Exhibition Australia and Hotels are expected to perform strongly, but are likely to be offset by weakness in Cinema Exhibition Germany and Thredbo. Overall, we believe that this will translate into slightly negative earnings growth for fiscal 2014. However, we believe earnings are set to rebound in fiscal 2015. Cinema Exhibition Germany suffered from a particularly weak film line up in the first four months of fiscal 2014, while Thredbo had one of its worst snow seasons in decades. While these segments have been volatile in the past, we expect improvement from these trough conditions in fiscal 2015.