Village Roadshow Ltd (ASX: VRL)

Sale of stake in Singapore’s Golden Village: Village Roadshow has recently announced about inking an agreement to sell its 50% stake in the Singapore Cinema Exhibition business, Golden Village, to Orange Sky Golden Harvest Entertainment (Holdings), who owns the remaining 50% stake of Golden Village. VRL has indicated net proceeds from this sale of the order of about A$165 million, which will help realise an NPAT of A$150 million. The transaction is expected to complete before the end of 2017, subject to customary conditions. The group will use the proceeds for reducing its debt levels and execute growth strategies. In September, the group had announced that Village Roadshow Theme Parks division is set for the sale and long-term leaseback of 154ha of Oxenford on the Gold Coast, for which expressions of interest are due in October.
 

Expansion under Cinema Exhibition (Source: Company Reports)

Meanwhile, VRL has reported that its gold Coast Theme Parks were found to be performing marginally lower in 1Q18 owing to impact from local market attendance while international growth has continued. VRL had launched low cost initiative, Heroes and Villains, in an attempt under its efforts towards growth. The group expects trending into Commonwealth Games through Sea World Resort while Village Roadshow studios continue to perform well. VRL is also looking at strategic partnerships for Topgolf, which is due for a grand opening in June 2018. Cinema Exhibition has benefitted from Stephen King’s IT and Star Wars in September. The group is continuously working on cost savings and process efficiencies to drive performance going forward.

Technology One Ltd (ASX: TNE)

Downgrade in full year profit guidance: Technology One’s stock tanked over 10% on October 03, 2017 while the group released its trading update that was below expectations. The group’s profit growth for the full year 2017 has now been downgraded to be between 7% to 9%, from the previously announced guidance of 10% to 15% at the back of sluggish pace for returning to profitability of its consulting business. The consulting business reported for a half year loss of $314k (down $4.1 million on the prior half year), and the full year consulting profit was said to be on an improving front. TNE’s underlying profit growth excluding events is now expected to be 20%, and the group expects an additional negative impact of $2.8 million on TNE’s profit and loss statement, given the performance of its consulting business. On the other hand, the group’s cloud business is growing strongly with cloud profit over 200%. 2017 seems to be a challenging year for the group considering the issues with the consulting arm and the public battle with Brisbane City Council with regards to a cancelled software system. The group will provide its full year results in November 2017.

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