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AtkinsRéalis Reports Strong Third Quarter 2024 Results

14.11.2024 by admin

Enhanced margins

Positive operating cash flows

Record high Nuclear backlog

MONTREAL, Nov. 14, 2024 /CNW/ – AtkinsRéalis Group Inc. ATRL, a world-class engineering services and nuclear company with offices around the world, today announced its financial results for the third quarter ended September 30, 2024.

AtkinsRéalis delivered strong Q3 results, supported by a sustained engineering services demand, robust nuclear end-market conditions and a continued focus on margin improvement. The Company delivered significant operating cash flows, organic revenue growth and improved margins year-over-year. Also, the Company’s backlog continued to be strong with a record high level achieved in the Nuclear segment.

“We delivered strong organic growth in the third quarter, building on the exceptional performance from the first half of this year and second half of 2023,” said Ian L. Edwards, President and CEO of AtkinsRéalis. “Over the last few years, we have simplified our business and positioned our operational focus towards high growth geographies and end-markets, which translated again this quarter into top-line improvement across many of our geographies, as the global demand for a sustainable future continues. The demand for our nuclear expertise continued to grow this quarter, leading to key wins and growing backlog to record levels. We are very pleased with this quarter’s margin enhancement, and we continue to work on achieving consistent and sustainable margin performance, underpinned by the work of our COO office. Our strong results, combined with stable, robust demand in our services business, record high backlogs and accelerating cash flow generation position us well to deliver on our capital allocation priorities – maintaining a strong balance sheet, investing in the business both organically and inorganically and returning capital to shareholders.”

Q3 2024 Financial Highlights
(All results reflect comparisons to prior-year period of Q3 2023, except as otherwise indicated)
(Engineering Services Regions is comprised of the following reportable segments: Canada, United Kingdom & Ireland (“UKI”), United States & Latin America (“USLA”) and Asia, Middle East & Australia (“AMEA”))

AtkinsRéalis Services revenue⁽¹⁾ totaled $2.3 billion, an increase of 15.0%, or 13.5% on an organic revenue growth⁽²⁾⁽³⁾basis
- Engineering Services Regions revenue⁽¹⁾ totaled $1.8 billion, an increase of 9.7%, or 8.4% on an organic revenue growth⁽²⁾⁽³⁾basis
- Nuclear revenue totaled $368.9 million, an increase of 36.4%, or 34.7% on an organic revenue growth⁽²⁾⁽³⁾basis
AtkinsRéalis Services Segment Adjusted EBIT⁽¹⁾ increased by 27.5% to $238.5 million
- Segment Adjusted EBIT for Engineering Services Regions⁽¹⁾ increased by 25.8% to $186.3 million, representing a Segment Adjusted EBIT to segment revenue ratio of 10.4%. Segment Adjusted EBITDA to segment net revenue ratio⁽²⁾⁽⁴⁾ was 16.9%, an increase of 160 basis points, at the upper end of the Company’s full year outlook range
- Segment Adjusted EBIT for Nuclear increased by 18.4% to $45.7 million, representing a Segment Adjusted EBIT to segment revenue ratio of 12.4%, within the Company’s full year outlook range
Segment Adjusted EBIT for LSTK Projects was negative $17.7 million
Adjusted EBITDA from PS&PM⁽²⁾ increased by 38.4% to $233.2 million, representing an Adjusted EBITDA from PS&PM to PS&PM revenue ratio⁽²⁾⁽⁷⁾ of 9.6%
AtkinsRéalis Services backlog⁽¹⁾ reached a new record-high level and totaled $16.8 billion as at September 30, 2024, an increase of 34.7% from September 30, 2023. The Nuclear segment reached a record-high level of $3.2 billion
Net income attributable to AtkinsRéalis shareholders totaled $103.7 million, or $0.59 per diluted share, compared to $105.0 million, or $0.60 per diluted share in Q3 2023, which included a net gain on disposal of the Company’s Scandinavian engineering services business of $46.2 million, or $0.26 per diluted share
Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM⁽²⁾ increased by 63.6% to $110.1 million, or $0.63 per diluted share
Net cash generated from operating activities of $267.1 million
The Company returned $26.5 million to shareholders through share repurchases and dividends ($49.1 million year-to-date)
Net limited recourse and recourse debt to Adjusted EBITDA ratio⁽²⁾⁽⁵⁾ was 1.4 as at September 30, 2024 compared to 1.9 as at June 30, 2024 and 2.7 as at September 30, 2023

Third Quarter Financial Results

Professional Services & Project Management are collectively referred to as “PS&PM” to distinguish them from “Capital” activities. PS&PM groups together the Company’s segments, namely Engineering Services Regions (Canada, United Kingdom & Ireland (“UKI”), United States & Latin America (“USLA”), and Asia, Middle East, & Australia (“AMEA”)), Nuclear, Linxon, and Lump-Sum Turnkey (“LSTK”) Projects, while Capital is its own reportable segment and separate from PS&PM.

Note that the Q3 2023 net income attributable to AtkinsRéalis shareholders included a net gain on disposal of the Company’s Scandinavian engineering services business of $46.2 million. Excluding this net gain, the Q3 2024 net income attributable to AtkinsRéalis shareholders was higher than the corresponding period in 2023, mainly due to higher Segment Adjusted EBIT, lower corporate selling, general and administrative expenses and lower net financial expenses, partially offset by higher income taxes.

IFRS Financial Highlights

	Q3 2024	Q3 2023	2024^A	2023^A
Revenues
From PS&PM	2,423.9	2,171.2	7,017.7	6,280.1
From Capital	28.2	28.9	62.6	74.7
	2,452.1	2,200.1	7,080.3	6,354.7
Attributable to AtkinsRéalis shareholders
Net income
From PS&PM	87.9	91.0	209.4	166.8
From Capital	15.8	14.0	22.0	30.4
	103.7	105.0	231.4	197.2
Diluted EPS
From PS&PM ($)	0.50	0.52	1.19	0.95
From Capital ($)	0.09	0.08	0.13	0.17
	0.59	0.60	1.32	1.12

Non-IFRS Financial Highlights

	Q3 2024	Q3 2023	2024^A	2023^A
Attributable to AtkinsRéalis shareholders
Adjusted net income from PS&PM⁽²⁾	110.1	67.3	269.2	194.6
Adjusted diluted EPS from PS&PM⁽²⁾⁽⁶⁾ ($)	0.63	0.38	1.53	1.11
Adjusted EBITDA from PS&PM⁽²⁾	233.2	168.5	595.6	491.7

Segment Performance

	Q3 2024	Q3 2023	2024^A	2023^A
Segment revenues
AtkinsRéalis Services
Engineering Services Regions	1,791.9	1,632.9	5,257.6	4,668.0
Nuclear	368.9	270.5	1,025.1	766.0
Linxon	189.0	140.1	534.8	403.9
Total	2,349.8	2,043.5	6,817.5	5,837.9
LSTK Projects	74.0	127.6	200.2	442.1
Capital	28.2	28.9	62.6	74.7
	2,452.1	2,200.1	7,080.3	6,354.7

Segment Adjusted EBIT
AtkinsRéalis Services
Engineering Services Regions	186.3	148.1	489.7	403.3
Nuclear	45.7	38.7	128.2	104.3
Linxon	6.5	0.4	11.3	3.0
Total	238.5	187.1	629.1	510.6
LSTK Projects	(17.7)	(13.2)	(49.2)	(35.0)
Capital	25.1	22.8	48.4	58.1
	245.9	196.7	628.3	533.8

Backlog as at September 30
AtkinsRéalis Services
Engineering Services Regions			12,031.3	10,242.7
Nuclear			3,221.1	1,053.1
Linxon			1,584.8	1,204.7
Total			16,837.3	12,500.5
LSTK Projects			190.1	305.2
Capital			21.7	24.0
			17,049.0	12,829.7

All figures in millions of Canadian dollars, except as otherwise indicated

Certain totals and subtotals may not reconcile due to rounding

^AFor the nine-month period ended September 30

Quarterly Dividend

The Board of Directors today declared a cash dividend of $0.02 per share, unchanged from the previous quarter. The dividend is payable on December 12, 2024 to shareholders of record on November 28, 2024. This dividend is an “eligible dividend” for Canadian federal and provincial income tax purposes.

Third Quarter 2024 Conference Call / Webcast

AtkinsRéalis will hold an audio webcast and conference call today at 8:00 a.m. (Eastern Time) to discuss and present its third quarter financial results. The live audio webcast of the conference call can be accessed through a link posted on the Company’s website at www.atkinsrealis.com/en/investors. The call will also be accessible by telephone, for which an accompanying slide presentation can be accessed at www.atkinsrealis.com/en/investors/investor-essentials/investors-briefcase/2024.

Please dial toll free at 1 844 763 8274 in North America, dial 1 647 484 8814 outside North America, or dial +44 20 3795 9972 in the United Kingdom. A recording and a transcript of the conference call will be available on the Company’s website within 24 hours following the call.

About AtkinsRéalis

Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-leading engineering services and nuclear company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world’s infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services, Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.

Non-IFRS Financial Measures and Ratios, Supplementary Financial Measures, Total of Segments Measures and Non-Financial Information

The Company reports its financial results in accordance with International Financial Reporting Standards (“IFRS”). However, the following non‑IFRS financial measures and ratios, supplementary financial measures, total of segments measures and non-financial information are used by the Company in this press release: Organic revenue growth (contraction), EBITDA, Adjusted EBITDA, Adjusted net income (loss) attributable to AtkinsRéalis shareholders, Adjusted diluted EPS, Segment Adjusted EBITDA to segment net revenue ratio, Segment net revenue, Adjusted EBITDA to revenue ratio, Net limited recourse and recourse debt to Adjusted EBITDA ratio and Net limited recourse and recourse debt as well as certain measures for various reportable segments that are grouped together, such as revenue for the various Engineering Services Regions segments and the various segments that comprise the AtkinsRéalis Services line of business. Additional details for these non-IFRS financial measures and ratios, supplementary financial measures, total of segments measures and non-financial information can be found below and in Sections 4, 6 and 9 of the Company’s Management’s Discussion and Analysis (“MD&A”) for the third quarter of 2024, which sections are incorporated by reference into this press release, filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.com and on the Company’s website at www.atkinsrealis.com under the “Investors” section.

Non-IFRS financial measures and ratios, supplementary financial measures, total of segments measures and non-financial information do not have any standardized meaning under IFRS and other issuers may define these measures differently and, accordingly, they may not be comparable to similar measures prepared by other issuers. Such non-IFRS financial measures and ratios, supplementary financial measures, total of segments measures and non-financial information have limitations and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

However, management believes that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS financial measures and ratios, supplementary financial measures, total of segments measures and non-financial information provide additional insight into the Company’s operating performance and financial position and certain investors may use this information to evaluate the Company’s performance from period to period. Furthermore, certain non-IFRS financial measures and ratios, certain additional IFRS measures and ratios, certain supplementary financial measures, certain total of segments measures and other non-financial information are presented separately for PS&PM, by excluding components related to Capital, as the Company believes that such measures are useful as these PS&PM activities are usually analyzed separately by the Company. Reconciliations and calculations of non-IFRS measures and ratios, supplementary financial measures, total of segments measures and non-financial information to the most comparable IFRS measures and ratios are set forth below in the section “Reconciliations and Calculations” of this press release.

⁽¹⁾Total of segments measure.

⁽²⁾Non-IFRS financial measure or ratio or supplementary financial measure.

⁽³⁾Organic revenue growth (contraction) ratio is a non-IFRS ratio comparing organic revenue (which excludes foreign exchange and acquisitions and disposals impacts), itself a non-IFRS financial measure, between two periods. See “Calculation of organic revenue growth” in the section “Reconciliations and Calculations” of this press release for each non-IFRS financial measure used as a component of this non-IFRS ratio.

⁽⁴⁾ Segment Adjusted EBITDA to segment net revenue ratio for the Engineering Services Regions is a non-IFRS ratio based on Segment Adjusted EBITDA and segment net revenue, both of which are non-IFRS financial measures. See “Calculation of Segment net revenue and Segment Adjusted EBITDA to segment net revenue ratio for Engineering Services Regions” in the section “Reconciliations and Calculations” of this press release for each non-IFRS financial measure used as a component of this non-IFRS ratio.

⁽⁵⁾ Net limited recourse and recourse debt to Adjusted EBITDA ratio is a non-IFRS ratio based on net limited recourse and recourse debt at the end of a given period and Adjusted EBITDA of the corresponding trailing twelve-month period, both of which are non-IFRS financial measures. See “Calculation of Net limited recourse and recourse debt to Adjusted EBITDA ratio” in the section “Reconciliations and Calculations” of this press release for each non-IFRS financial measure used as a component of this non-IFRS ratio.

⁽⁶⁾ Adjusted diluted EPS is a non-IFRS ratio based on adjusted net income (loss) attributable to AtkinsRéalis shareholders, itself a non-IFRS financial measure. See “Reconciliation of Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM to IFRS net income attributable to AtkinsRéalis shareholders” in the section “Reconciliations and Calculations” of this press release for each non-IFRS financial measure used as a component of this non-IFRS ratio.

⁽⁷⁾ Adjusted EBITDA from PS&PM to PS&PM revenue ratio is a non-IFRS ratio based on Adjusted EBITDA from PS&PM and revenue from PS&PM, of which the Adjusted EBITDA from PS&PM is a non-IFRS financial measure. See “Reconciliation of EBITDA and Adjusted EBITDA to IFRS net income and calculation of Adjusted EBITDA to revenue ratio” in the section “Reconciliations and Calculations” of this press release for the non-IFRS financial measure used as a component of this non-IFRS ratio.

Reconciliations and Calculations

Reconciliation of Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM to IFRS net income attributable to AtkinsRéalis shareholders

	Q3 2024				Q3 2023
	Before Taxes	Taxes	After Taxes	Diluted EPS (In $)	Before Taxes	Taxes	After Taxes	Diluted EPS (In $)
Net income attributable to AtkinsRéalis shareholders (IFRS)			103.7	0.59			105.0	0.60
Restructuring and transformation costs	9.2	(2.5)	6.7		6.6	(1.1)	5.6
Amortization of intangible assets related to business combinations	19.2	(3.7)	15.5		21.1	(4.1)	17.0
Gain on disposal of a PS&PM business	–	–	–		(46.2)	–	(46.2)
Total adjustments	28.4	(6.2)	22.2	0.13	(18.5)	(5.2)	(23.7)	(0.13)
Adjusted net income attributable to AtkinsRéalis shareholders (non-IFRS)			125.9	0.72			81.3	0.46

Net income attributable to AtkinsRéalis shareholders from Capital			15.8	0.09			14.0	0.08
Total adjustments	–	–	–	–	–	–	–	–
Adjusted net income attributable to AtkinsRéalis shareholders from Capital (non-IFRS)			15.8	0.09			14.0	0.08

Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM (non-IFRS)			110.1	0.63			67.3	0.38

	Nine months ended September 30, 2024				Nine months ended September 30, 2023
	Before Taxes	Taxes	After Taxes	Diluted EPS (In $)	Before Taxes	Taxes	After Taxes	Diluted EPS (In $)
Net income attributable to AtkinsRéalis shareholders (IFRS)			231.4	1.32			197.2	1.12
Restructuring and transformation costs	13.3	(3.6)	9.7		27.9	(4.2)	23.7
Amortization of intangible assets related to business combinations	61.1	(11.9)	49.3		62.5	(12.2)	50.3
Acquisition-related costs and integration costs	0.9	–	0.9		–	–	–
Gain on disposal of a PS&PM business	–	–	–		(46.2)	–	(46.2)
Total adjustments	75.3	(15.5)	59.8	0.34	44.2	(16.4)	27.8	0.16
Adjusted net income attributable to AtkinsRéalis shareholders (non-IFRS)			291.3	1.66			225.0	1.28

Net income attributable to AtkinsRéalis shareholders from Capital			22.0	0.13			30.4	0.17
Total adjustments	–	–	–	–	–	–	–	–
Adjusted net income attributable to AtkinsRéalis shareholders from Capital (non-IFRS)			22.0	0.13			30.4	0.17

Adjusted net income attributable to AtkinsRéalis shareholders from PS&PM (non-IFRS)			269.2	1.53			194.6	1.11

Note that certain totals and subtotals may not reconcile due to rounding

All figures in millions of Canadian dollars, except as otherwise indicated

Reconciliation of EBITDA and Adjusted EBITDA to IFRS net income and calculation of Adjusted EBITDA to revenue ratio

	Q3 2024			Q3 2023
	From PS&PM	From Capital	Total	From PS&PM	From Capital	Total
Revenue	2,423.9	28.2	2,452.1	2,171.2	28.9	2,200.1

Net income	90.1	15.8	105.9	90.7	14.0	104.7
Net financial expenses	39.1	1.7	40.8	48.6	1.6	50.2
Income tax expense	35.9	0.6	36.4	5.9	0.1	6.1
EBIT	165.0	18.1	183.1	145.2	15.7	160.9
Depreciation and amortization	59.0	–	59.0	62.9	–	62.9
EBITDA	224.0	18.1	242.1	208.1	15.7	223.8
Restructuring and transformation costs	9.2	–	9.2	6.6	–	6.6
Gain on disposal of a PS&PM business	–	–	–	(46.2)	–	(46.2)
Adjusted EBITDA	233.2	18.1	251.3	168.5	15.7	184.3
Adjusted EBITDA to revenue ratio	9.6 %	64.1 %	10.2 %	7.8 %	54.4 %	8.4 %

	Nine months ended September 30, 2024			Nine months ended September 30, 2023
	From PS&PM	From Capital	Total	From PS&PM	From Capital	Total
Revenue	7,017.7	62.6	7,080.3	6,280.1	74.7	6,354.7

Net income	213.5	22.0	235.6	166.4	30.4	196.8
Net financial expenses	117.5	4.6	122.1	134.6	5.9	140.6
Income tax expense	67.5	0.6	68.1	25.0	0.6	25.6
EBIT	398.5	27.3	425.8	326.0	37.0	363.0
Depreciation and amortization	182.9	–	182.9	184.0	–	184.0
EBITDA	581.4	27.3	608.7	510.0	37.0	547.0
Restructuring and transformation costs	13.3	–	13.3	27.9	–	27.9
Acquisition-related costs and integration costs	0.9	–	0.9	–	–	–
Gain on disposal of a PS&PM business	–	–	–	(46.2)	–	(46.2)
Adjusted EBITDA	595.6	27.3	622.9	491.7	37.0	528.7
Adjusted EBITDA to revenue ratio	8.5 %	43.7 %	8.8 %	7.8 %	49.6 %	8.3 %

Note that certain totals and subtotals may not reconcile due to rounding

All figures in millions of Canadian dollars, except as otherwise indicated

Components of Engineering Services Regions

	Q3 2024	Q3 2023	Nine months ended September 30, 2024	Nine months ended September 30, 2023
Segment revenues
Canada	348.4	367.6	1,091.7	1,026.3
UKI	650.4	610.5	1,860.3	1,800.6
USLA	429.1	384.3	1,280.5	1,134.6
AMEA	364.0	270.5	1,025.1	706.6
Engineering Service Regions	1,791.9	1,632.9	5,257.6	4,668.0
Segment Adjusted EBIT
Canada	28.7	24.2	61.7	52.4
UKI	79.8	57.5	208.8	172.4
USLA	43.8	41.2	119.3	116.8
AMEA	34.0	25.2	99.8	61.8
Engineering Services Regions	186.3	148.1	489.7	403.3

	September 30, 2024	September 30, 2023
Backlog
Canada	7,431.4	6,058.1
UKI	1,661.6	1,532.6
USLA	1,613.2	1,512.0
AMEA	1,325.2	1,140.0
Engineering Services Regions	12,031.3	10,242.7

Note that certain totals and subtotals may not reconcile due to rounding

All figures in millions of Canadian dollars

Reconciliation of Segment Adjusted EBIT to Segment Adjusted EBITDA for Engineering Services Regions

	Q3 2024	Nine months ended September 30, 2024
Segment Adjusted EBIT – Engineering Services Regions	186.3	489.7
Depreciation and amortization – Engineering Services Regions	31.6	94.5
Segment Adjusted EBITDA – Engineering Services Regions	217.9	584.1

Note that certain totals and subtotals may not reconcile due to rounding

All figures in millions of Canadian dollars

Calculation of Segment net revenue and Segment Adjusted EBITDA to segment net revenue ratio for Engineering Services Regions

	Q3 2024	Nine months ended September 30, 2024
Revenue – Engineering Services Regions	1,791.9	5,257.6
Less: Direct costs for sub-contractors and other direct expenses that are recoverable directly from clients – Engineering Services Regions	503.2	1,548.7
Segment net revenue – Engineering Services Regions	1,288.7	3,708.9
Segment Adjusted EBITDA – Engineering Services Regions	217.9	584.1
Segment Adjusted EBITDA to segment net revenue ratio – Engineering Services Regions	16.9 %	15.7 %

	Q3 2023	Nine months ended September 30, 2023
Revenue – Engineering Services Regions	1,632.9	4,668.0
Less: Direct costs for sub-contractors and other direct expenses that are recoverable directly from clients – Engineering Services Regions	462.0	1,283.9
Segment net revenue – Engineering Services Regions	1,171.0	3,384.2
Segment Adjusted EBITDA – Engineering Services Regions	179.0	494.7
Segment Adjusted EBITDA to segment net revenue ratio – Engineering Services Regions	15.3 %	14.6 %

Engineering Services Regions comprises Canada, UKI, USLA and AMEA segments

Note that certain totals and subtotals may not reconcile due to rounding
All figures in millions of Canadian dollars, except as otherwise indicated

Calculation of organic revenue growth

	Revenue Q3 2024	Revenue Q3 2023	Variance	Foreign exchange impact	Acquisitions / Disposals impact	Organic revenue growth
Engineering Services Regions	1,791.9	1,632.9	159.0	31.4	(9.7)	137.3
Nuclear	368.9	270.5	98.4	4.6	–	93.8
Linxon	189.0	140.1	48.9	3.6	–	45.3
Total – AtkinsRéalis Services	2,349.8	2,043.5	306.3	39.6	(9.7)	276.3

	Revenue Q3 2024	Revenue Q3 2023	Variance	Foreign exchange impact	Acquisitions / Disposals impact	Organic revenue growth
Engineering Services Regions	1,791.9	1,632.9	9.7 %	1.9 %	(0.6) %	8.4 %
Nuclear	368.9	270.5	36.4 %	1.7 %	–	34.7 %
Linxon	189.0	140.1	34.9 %	2.6 %	–	32.3 %
Total – AtkinsRéalis Services	2,349.8	2,043.5	15.0 %	1.9 %	(0.5) %	13.5 %

	Revenue Nine months ended September 30, 2024	Revenue Nine months ended September 30, 2023	Variance	Foreign exchange impact	Acquisitions / Disposals impact	Organic revenue growth
Engineering Services Regions	5,257.6	4,668.0	589.5	79.2	(77.8)	588.2
Nuclear	1,025.1	766.0	259.1	11.5	–	247.6
Linxon	534.8	403.9	130.9	7.7	–	123.2
Total – AtkinsRéalis Services	6,817.5	5,837.9	979.6	98.4	(77.8)	959.0

	Revenue Nine months ended September 30, 2024	Revenue Nine months ended September 30, 2023	Variance	Foreign exchange impact	Acquisitions / Disposals impact	Organic revenue growth
Engineering Services Regions	5,257.6	4,668.0	12.6 %	1.7 %	(1.7) %	12.6 %
Nuclear	1,025.1	766.0	33.8 %	1.5 %	–	32.3 %
Linxon	534.8	403.9	32.4 %	1.9 %	–	30.5 %
Total – AtkinsRéalis Services	6,817.5	5,837.9	16.8 %	1.7 %	(1.3) %	16.4 %

Note that certain totals and subtotals may not reconcile due to rounding

All figures in millions of Canadian dollars, except as otherwise indicated

Calculation of Net limited recourse and recourse debt to Adjusted EBITDA ratio

	September 30, 2024	June 30, 2024	September 30, 2023
Limited recourse debt	398.8	398.6	398.1
Recourse debt	1,355.4	1,492.2	1,731.4
Less: Cash and cash equivalents	544.8	420.4	563.5
Net limited recourse and recourse debt	1,209.4	1,470.4	1,566.0
Adjusted EBITDA (trailing 12 months)	856.8	789.8	587.0
Net limited recourse and recourse debt to Adjusted EBITDA ratio	1.4	1.9	2.7

Note that certain totals and subtotals may not reconcile due to rounding

All figures in millions of Canadian dollars, except as otherwise indicated

Forward-Looking Statements

References in this press release, and hereafter, to the “Company”, “AtkinsRéalis”, “we”, “us” and “our” mean, as the context may require, AtkinsRéalis Group Inc. and all or some of its subsidiaries or joint arrangements or associates, or AtkinsRéalis Group Inc. or one or more of its subsidiaries or joint arrangements or associates.

Statements made in this press release that describe the Company’s or management’s budgets, estimates, expectations, forecasts, objectives, predictions, projections of the future or strategies may be “forward-looking statements”, which can be identified by the use of the conditional or forward-looking terminology such as “aims”, “anticipates”, “assumes”, “believes”, “cost savings”, “estimates”, “expects”, “forecasts”, “goal”, “intends”, “likely”, “may”, “objective”, “outlook”, “plans”, “projects”, “should”, “synergies”, “target”, “vision”, “will”, or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. Forward-looking statements also include statements relating to the following: i) future capital expenditures, revenues, expenses, earnings, economic performance, indebtedness, financial condition, losses, project or contract-specific cost reforecasts and claims provisions, future prospects and potential future significant contract opportunities, including those in the Nuclear segment; and ii) business and management strategies and the expansion and growth of the Company’s operations. All such forward-looking statements are made pursuant to the “safe-harbour” provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements made in this press release are based on a number of assumptions believed by the Company to be reasonable as at the date hereof. The assumptions are set out throughout the Company’s 2023 Annual MD&A (particularly in the sections entitled “Critical Accounting Judgements and Key Sources of Estimation Uncertainty” and “How We Analyze and Report Our Results”). If these assumptions are inaccurate, the Company’s actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors could cause the Company’s assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. These risks include, but are not limited to, matters relating to: (a) fixed-price contracts or the Company’s failure to meet contractual schedule, performance requirements or to execute projects efficiently; (b) backlog and contracts with termination for convenience provisions; (c) contract awards and timing; (d) being a provider of services to government agencies; (e) international operations;
(f) nuclear liability; (g) ownership interests in investments; (h) dependence on third parties; (i) supply chain disruptions; (j) joint arrangements and partnerships; (k) information systems and data and compliance with privacy legislation; (l) artificial intelligence (“AI”) and other innovative technologies; (m) qualified personnel; (n) strategic direction; (o) competition; (p) professional liability or liability for faulty services; (q) monetary damages and penalties in connection with professional and engineering reports and opinions; (r) gaps in insurance coverage; (s) health and safety; (t) work stoppages, union negotiations and other labour matters; (u) epidemics, pandemics and other health crises; (v) global climate change, extreme weather conditions and the impact of natural or other disasters; (w) environmental, social and governance (“ESG”); * divestitures and the sale of significant assets; (y) intellectual property; (z) liquidity and financial position; (aa) indebtedness; (bb) impact of operating results and level of indebtedness on financial situation; (cc) security under the CDPQ Loan Agreement (as defined in the Company’s 2024 third quarter MD&A); (dd) dependence on subsidiaries to help repay indebtedness; (ee) dividends; (ff) post-employment benefit obligations, including pension-related obligations; (gg) working capital requirements; (hh) collection from customers; (ii) impairment of goodwill and other non-current intangible and tangible assets; (jj) the impact on the Company of legal and regulatory proceedings, investigations and dispute settlements; (kk) employee, agent or partner misconduct or failure to comply with anti-corruption and other government laws and regulations; (ll) reputation of the Company; (mm) inherent limitations to the Company’s control framework; (nn) environmental laws and regulations; (oo) global economic conditions; (pp) inflation; (qq) fluctuations in commodity prices; and (rr) income taxes.

The Company cautions that the foregoing list of factors is not exhaustive. For more information on risks and uncertainties, and assumptions that could cause the Company’s actual results to differ from current expectations, please refer to the sections “Risks and Uncertainties”, “How We Analyze and Report Our Results” and “Critical Accounting Judgements and Key Sources of Estimation Uncertainty” in the Company’s 2023 Annual MD&A and as may be updated from time to time in the Company’s 2024 interim quarterly MD&A filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.com and on the Company’s website at www.atkinsrealis.com under the “Investors” section.

The forward-looking statements herein reflect the Company’s expectations as at the date of this press release and are subject to change after this date. The Company does not undertake to update publicly or to revise any written or oral forward-looking information or statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.

The Company’s unaudited interim condensed consolidated financial statements for the three-month and nine-month periods ended September 30, 2024 and 2023, together with its Management’s Discussion and Analysis for the corresponding periods, can be accessed on the Company’s website at www.atkinsrealis.com and on www.sedarplus.com.

SOURCE AtkinsRéalis

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Economics News

Pressure Sensitive Adhesives Market to Cross USD 13.8 billion, at a CAGR of 5.2% by 2031: Transparency Market Research, Inc.

14.11.2024 by admin

Wilmington, Delaware, United States, Transparency Market Research Inc. -, Nov. 14, 2024 (GLOBE NEWSWIRE) — The global pressure sensitive adhesives market (감압성 접착제 시장) is estimated to flourish at a CAGR of 5.2% from 2022 to 2031. Transparency Market Research projects that the overall sales revenue for pressure sensitive adhesives is estimated to reach US$ 13.8 billion by the end of 2031.

The increasing popularity of flexible packaging in the food and beverage industry emerges as a significant driver. As consumer preferences shift towards convenience and sustainability, flexible packaging relies heavily on pressure sensitive adhesives for secure closures, spurring market growth.

The burgeoning demand for electric vehicles brings forth a unique driver for the pressure sensitive adhesives market. The assembly of battery packs and lightweight components in EVs requires specialized adhesives for bonding and sealing, presenting an uncharted avenue for pressure sensitive adhesives applications.

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The growing trend of miniaturization in electronic devices fuels the demand for ultra-thin and high-performance pressure sensitive adhesives. As manufacturers strive to reduce the size and weight of electronic components, the role of advanced pressure sensitive adhesives in enabling precision assembly gains prominence.

Key Findings of the Market Report

Water-based pressure-sensitive adhesives lead the market, offering eco-friendly solutions with low VOC content and versatile applications in various industries.
The labels segment leads the pressure sensitive adhesives market, fueled by demand for innovative labeling solutions across diverse industries.
North America leads the pressure sensitive adhesives market, driven by advanced industrial applications, technological innovation, and a robust manufacturing sector.

Pressure Sensitive Adhesives Market Growth Drivers & Trends

Growing demand for eco-friendly solutions propels the development and adoption of sustainable pressure-sensitive adhesives, aligning with global environmental consciousness.
The surge in online retail amplifies the need for efficient packaging, driving the demand for pressure-sensitive adhesives in the packaging industry.
Increasing utilization of smart labels in various sectors enhances the demand for specialized pressure-sensitive adhesives, fostering innovation in labeling and packaging applications.
Technological advancements in the automotive sector, including lightweight materials and electric vehicles, fuel the demand for high-performance pressure-sensitive adhesives in automotive manufacturing.
The medical sector’s stringent hygiene and performance standards drive the adoption of specialized pressure-sensitive adhesives in medical device manufacturing, contributing to market growth.

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Global Pressure Sensitive Adhesives Market: Regional Profile

In North America, the United States spearheads the market, driven by robust manufacturing and end-user industries. The region’s focus on innovation, particularly in the automotive and packaging sectors, fuels the demand for advanced pressure sensitive adhesives. Regulatory initiatives promoting sustainable adhesives further shape the market, with key players like 3M and Avery Dennison leading in technological advancements.
Europe stands as a prominent hub for the pressure sensitive adhesives market, with Germany and the United Kingdom playing pivotal roles. The European market thrives on stringent environmental regulations, fostering the adoption of eco-friendly and low-VOC adhesive solutions. Increased emphasis on renewable energy and sustainable packaging bolsters the demand for specialized pressure sensitive adhesives in the region.
Asia Pacific emerges as a dynamic growth center, driven by the manufacturing powerhouses of China, Japan, and South Korea. Rapid industrialization, coupled with expanding automotive and electronics sectors, propels the demand for pressure sensitive adhesives. The region’s robust packaging industry also contributes significantly to the market.

Pressure Sensitive Adhesives Market: Competitive Landscape
The pressure sensitive adhesives market is characterized by intense competition among key players such as 3M, Avery Dennison, and Henkel. These industry giants leverage extensive research and development capabilities to introduce innovative adhesive solutions.

Emerging players like Arkema and H.B. Fuller also contribute to the competitive landscape, driving advancements in PSA formulations. Strategic collaborations, mergers, and acquisitions shape market dynamics, reflecting a constant pursuit of market share.

As demand escalates across diverse industries, the competitive landscape evolves, compelling companies to focus on customization, sustainability, and technological prowess to maintain a competitive edge in the pressure sensitive adhesives market. Some prominent manufacturers are as follows:

3M Company
Ashland Inc.
Avery Dennison Corporation
BASF SE
Bostik SA
Nippon Paint Co. Ltd.
Dow Chemical Company
Ellsworth Adhesives
H.B Fuller Company
Henkel AG & Co. KGaA
LG Chem

Product Portfolio

H.B. Fuller, a global adhesive solutions provider, offers a comprehensive product portfolio catering to various industries. From innovative adhesives and sealants to specialty chemicals, H.B. Fuller’s offerings exemplify a commitment to enhancing product performance and efficiency for clients worldwide.
Henkel, a leading multinational conglomerate, presents a diverse product portfolio encompassing adhesives, beauty care, and laundry & home care solutions. Renowned for innovation, Henkel’s products reflect a commitment to sustainability, efficiency, and meeting evolving consumer needs across industries.
LG Chem, a global chemical and energy solutions leader, shows a diverse product portfolio spanning petrochemicals, advanced materials, and batteries. With a focus on sustainability and cutting-edge technology, LG Chem’s offerings contribute to advancements in various sectors, fostering a greener and more efficient future.

Pressure Sensitive Adhesives Market: Key Segments
By Product

Water-based
Solvent-based
Hot Melt
Radiation Cured

By Application

Tapes
Labels
Graphics
Others (including Automotive Trims, Dental Adhesives, and Notepads)

By Region

North America
Europe
Asia Pacific
Middle East & Africa
Latin America

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More Trending Report by Transparency Market Research:

Sulfamic Acid Market (スルファミン酸市場): The global sulfamic acid market was valued at US$ 154.3 Bn in 2022; It is projected to expand at a CAGR of 4.6% from 2023 to 2031 and reach US$ 237.6 Bn by the end of 2031

Adhesive Tapes Market (سوق الأشرطة اللاصقة): The global adhesive tapes market was valued at US$ 80.9 Bn in 2022; It is estimated to grow at a CAGR of 6.7% from 2023 to 2031 and reach US$ 143.5 Bn by the end of 2031

About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

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Earnings News

Xunlei Announces Unaudited Financial Results for the Third Quarter Ended September 30, 2024

14.11.2024 by admin

SHENZHEN, China, Nov. 14, 2024 (GLOBE NEWSWIRE) — Xunlei Limited (“Xunlei” or the “Company”) XNET, a leading technology company providing distributed cloud services in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third quarter 2024 Financial Highlights:

Total revenues were US$80.1 million, representing a decrease of 4.9% year-over-year.

Cloud computing revenues were US$25.3 million, representing a decrease of 14.4% year-over-year.

Subscription revenues were US$33.2 million, representing an increase of 15.6% year-over-year.

Live streaming and other internet value-added services (“Live streaming and other IVAS”) revenues were US$21.6 million, representing a decrease of 16.7% year-over-year.

Gross profit was US$40.5 million, representing an increase of 7.8% year-over-year, and gross profit margin was 50.8% in the third quarter, compared with 44.6% in the same period of 2023.

Net income was US$4.4 million in the third quarter, same as US$4.4 million in the same period of 2023.

Non-GAAP net income¹ was US$4.9 million in the third quarter, compared with US$5.5 million in the same period of 2023.

Diluted earnings per ADS was approximately US$0.07 in the third quarter, same as US$0.07 in the same period of 2023.

“We achieved continued profitability and positive operating cash flows in the third quarter of 2024, while the revenue performance from each business line was mixed. The third quarter performance was led by double-digit growth in subscription business. While the total revenues decreased year-over-year due to the downsizing of our domestic audio live streaming business last year and lower cloud computing sales, we have successfully carried out diversified measures to mitigate their impact,” said Mr. Jinbo Li, Chairman and CEO of Xunlei.

“We are confident in our business outlook and have been actively implementing our new share repurchase plan announced in June this year. Looking ahead, we will continue to push boundaries, explore untapped potential and ultimately create values for our shareholders,” concluded Mr. Li.

Third Quarter 2024 Financial Results

Total Revenues

Total revenues were US$80.1 million, representing a decrease of 4.9% year-over-year. The decrease in total revenues was mainly attributable to the decrease in our revenues from live streaming and cloud computing businesses.

Revenues from cloud computing were US$25.3 million, representing a decrease of 14.4% year-over-year. The decrease in cloud computing revenues was mainly due to the reduced sale of our cloud computing services and a decline in sales of cloud computing hardware devices as a result of heightened competition and evolving regulatory environment.

Revenues from subscription were US$33.2 million, representing an increase of 15.6% year-over-year. The increase in subscription revenues was mainly driven by the increase in the number of subscribers. The number of subscribers was 5.51 million as of September 30, 2024, compared with 5.02 million as of September 30, 2023. The average revenue per subscriber for the third quarter was RMB40.9, compared with RMB39.9 in the same period of 2023. The higher average revenue per subscriber was mainly attributable to an increase in the proportion of users who signed up for our premium membership services.

Revenues from live streaming and other IVAS were US$21.6 million, representing a decrease of 16.7% year-over-year. The decrease of live streaming and other IVAS revenues was mainly due to the downsizing of our domestic audio live streaming operations since June 2023, which was partially offset by the increase in the revenues from our overseas audio live streaming business.

Costs of Revenues

Costs of revenues were US$39.4 million, representing 49.1% of our total revenues, compared with US$46.4 million, or 55.1% of the total revenues, in the same period of 2023. The decrease in costs of revenues was mainly attributable to the decrease in bandwidth costs as well as revenue-sharing costs for our live streaming business incurred during the quarter.

Bandwidth costs, as included in costs of revenues, were US$24.8 million, representing 31.0% of our total revenues, compared with US$28.1 million, or 33.4% of the total revenues, in the same period of 2023. The decrease was primarily due to the enhanced utilization efficiency and decrease in revenues from cloud computing services during the quarter.

The remaining costs of revenues mainly consisted of costs related to the revenue-sharing from our live streaming business, payment handling charges and cost of inventories sold.

Gross Profit and Gross Profit Margin

Gross profit for the third quarter of 2024 was US$40.5 million, representing an increase of 7.8% year-over-year. Gross profit margin was 50.5% in the third quarter, compared with 44.6% in the same period of 2023. The increase in gross profit was mainly driven by the increased gross profit from our subscription business. The increase in gross profit margin was primarily due to the higher weighting of subscription revenues in our total revenue mix, which have a higher gross profit margin.

Research and Development Expenses

Research and development expenses for the third quarter were US$17.7 million, representing 22.1% of our total revenues, compared with US$19.5 million, or 23.1% of our total revenues, in the same period of 2023. The decrease was primarily due to the decrease in labor cost.

Sales and Marketing Expenses

Sales and marketing expenses for the third quarter were US$11.5 million, representing 14.3% of our total revenues, compared with US$9.5 million, or 11.3% of our total revenues, in the same period of 2023. The increase was primarily due to more marketing expenses incurred for our subscription and overseas audio live streaming businesses.

General and Administrative Expenses

General and administrative expenses for the third quarter were US$11.4 million, representing 14.2% of our total revenues, compared with US$11.1 million, or 13.2% of our total revenues, in the same period of 2023. The increase was primarily due to the increase in labor costs, partially offset by the decrease in one-off impairment of servers and network equipment.

Operating Loss

Operating loss was US$0.2 million, compared with an operating loss of US$2.5 million in the same period of 2023. The decrease in operating loss was primarily attributable to the increase in gross profit of subscription and overseas audio live streaming businesses, partially offset by the increase in marketing expenses during the quarter.

Other Income, Net

Other income, net was US$4.8 million, compared with other income, net of US$7.3 million in the same period of 2023. The decrease was primarily due to less reversal of payables with low payment probability as compared with the same period of 2023.

Net Income and Earnings Per ADS

Net income was US$4.4 million, same as US$4.4 million in the third quarter of 2023. Non-GAAP net income was US$4.9 million in the third quarter of 2024, compared with US$5.5 million in the same period of 2023.

Diluted earnings per ADS in the third quarter of 2024 was approximately US$0.07, same as US$0.07 in the third quarter of 2023.

Cash Balance

As of September 30, 2024, the Company had cash, cash equivalents and short-term investments of US$272.0 million, compared with US$263.4 million as of June 30, 2024. The increase was mainly due to the net cash inflow from operating activities, partially offset by the repayment of bank loans and spending on share buybacks.

Share Repurchase Program

On June 4, 2024, Xunlei announced that its Board of Directors had authorized a new plan for the repurchase of up to US$20 million of its ADSs or shares over the next 12 months. As of September 30, 2024, the Company had spent approximately US$1.5 million on share buybacks under the new share repurchase program.

During the quarter ended September 30, 2024, the Company had repurchased a total of 588,025 ADSs for a total of US$1.0 million.

Guidance for the Fourth Quarter of 2024

For the fourth quarter of 2024, Xunlei estimates total revenues to be between US$77 million and US$82 million, and the midpoint of the range represents a quarter-over-quarter decrease of approximately 0.7%. This estimate represents management’s preliminary view as of the date of this press release, which is subject to change and any change could be material.

Conference Call Information.

Xunlei’s management will host a conference call at 7:00 a.m. U.S. Eastern Time on November 14, 2024 (8:00 p.m. Beijing/Hong Kong Time), to discuss the Company’s quarterly results and recent business developments.

Participant Online Registration: https://register.vevent.com/register/BI548168feaf884dee90e66d28f4bee648

Please register to join the conference using the link provided above and dial in 10 minutes before the call is scheduled to begin. Once registered, the participants will receive an email with personal PIN and dial-in information, and participants can choose to access either via Dial-In or Call Me. A kindly reminder that “Call Me” does not work for China number.

The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.xunlei.com. Following the earnings conference call, an archive of the call will be available at https://edge.media-server.com/mmc/p/y5ezeqng

About Xunlei

Founded in 2003, Xunlei Limited XNET is a leading technology company providing distributed cloud services in China. Xunlei provides a wide range of products and services across cloud acceleration, shared cloud computing and digital entertainment to deliver an efficient, smart and safe internet experience.

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “future,” “intends,” “plans,” “estimates” and similar statements. Among other things, the management’s quotations and the “Guidance” section in this press release, as well as the Company’s strategic, operational and acquisition plans, contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Forward-looking statements involve inherent risks and uncertainties, including but not limited to: the Company’s ability to continue to innovate and provide attractive products and services to retain and grow its user base; the Company’s ability to keep up with technological developments and users’ changing demands in the internet industry; the Company’s ability to convert its users into subscribers of its premium services; the Company’s ability to deal with existing and potential copyright infringement claims and other related claims; the Company’s ability to react to the governmental actions for its scrutiny of internet content in China and the Company’s ability to compete effectively. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

About Non-GAAP Financial Measures

To supplement Xunlei’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Xunlei uses the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) non-GAAP operating income, (2) non-GAAP net income, (3) non-GAAP basic and diluted earnings per share for common shares, and (4) non-GAAP basic and diluted earnings per ADS. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Xunlei believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding the Company’s operating performance by excluding share-based compensation expenses, which is not expected to result in future cash payments. These non-GAAP financial measures also facilitate management’s internal comparisons to Xunlei’s historical performance and assist the Company’s financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a recurring expense in Xunlei’s results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying reconciliation tables at the end of this release include details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

XUNLEI LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of USD, except for share, per share (or ADS) data)
	September 30,		December 31,
	2024		2023
	US$		US$
Assets

Current assets:
Cash and cash equivalents	133,436		170,802
Short-term investments	138,596		101,078
Accounts receivable, net	32,173		31,210
Inventories	1,465		2,219
Due from related parties	31,884		12,644
Prepayments and other current assets	10,827		9,423
Total current assets	348,381		327,376

Non-current assets:
Restricted cash	523		–
Long-term investments	30,768		32,134
Deferred tax assets	784		478
Property and equipment, net	57,975		60,028
Intangible assets, net	8,999		5,697
Goodwill	21,050		20,826
Due from a related party, non-current portion	–		19,619
Long-term prepayments and other non-current assets	3,155		1,953
Operating lease assets	349		575
Total assets	471,984		468,686

Liabilities
Current liabilities:
Accounts payable	24,933		24,430
Due to related parties	18		–
Contract liabilities, current portion	38,493		36,375
Lease liabilities	162		276
Income tax payable	8,170		6,391
Accrued liabilities and other payables	47,457		53,708
Short-term bank borrowings and current portion of long-term bank borrowings	71		6,906
Total current liabilities	119,304		128,086

Non-current liabilities:
Contract liabilities, non-current portion	516		846
Lease liabilities, non-current portion	134		229
Deferred tax liabilities	988		513
Bank borrowings, non-current portion	14,270		15,539
Total liabilities	135,212		145,213

Equity
Common shares (US$0.00025 par value, 1,000,000,000 shares authorized, 375,001,940 shares issued and 323,525,556 shares outstanding as at December 31, 2023; 375,001,940 issued and 316,960,156 shares outstanding as at September 30, 2024)	79		81
Additional paid-in-capital	480,939		482,484
Accumulated other comprehensive loss	(16,221	)	(18,913	)
Statutory reserves	8,142		8,142
Treasury shares (51,476,384 shares and 58,041,784 shares as at December 31, 2023 and September 30, 2024, respectively)	15		12
Accumulated deficits	(135,955	)	(146,944	)
Total Xunlei Limited’s shareholders’ equity	336,999		324,862
Non-controlling interests	(227	)	(1,389	)
Total liabilities and shareholders’ equity	471,984		468,686

XUNLEI LIMITED
Unaudited Condensed Consolidated Statements of Income
(Amounts expressed in thousands of USD, except for share, per share (or ADS) data)
	Three months ended

	Sep 30,		Jun 30,		Sep 30,
	2024		2024		2023
	US$		US$		US$
Revenues, net of rebates and discounts	80,141		79,603		84,235
Business taxes and surcharges	(303	)	(270	)	(286	)
Net revenues	79,838		79,333		83,949
Costs of revenues	(39,380	)	(38,632	)	(46,409	)
Gross profit	40,458		40,701		37,540

Operating expenses
Research and development expenses	(17,744	)	(17,470	)	(19,483	)
Sales and marketing expenses	(11,453	)	(10,867	)	(9,507	)
General and administrative expenses	(11,362	)	(11,231	)	(11,093	)
Credit loss expenses, net	(73	)	(166	)	28
Total operating expenses	(40,632	)	(39,734	)	(40,055	)

Operating (loss)/income	(174	)	967		(2,515	)
Interest income	1,233		1,265		1,163
Interest expense	(165	)	(182	)	(361	)
Other income, net	4,817		2,535		7,329
Income before income taxes	5,711		4,585		5,616
Income tax expenses	(1,335	)	(2,065	)	(1,251	)
Net income	4,376		2,520		4,365
Less: net loss attributable to non-controlling interest	(219	)	(235	)	(30	)
Net income attributable to common shareholders	4,595		2,755		4,395
Earnings per share for common shares
Basic	0.0145		0.0086		0.0134
Diluted	0.0145		0.0086		0.0134

Earnings per ADS
Basic	0.0725		0.0430		0.0670
Diluted	0.0725		0.0430		0.0670

Weighted average number of common shares used in calculating:
Basic	317,410,168		320,688,429		328,229,170
Diluted	317,921,168		320,922,960		328,738,450

Weighted average number of ADSs used in calculating:
Basic	63,482,034		64,137,686		65,645,834
Diluted	63,584,234		64,184,592		65,747,690

XUNLEI LIMITED
Reconciliation of GAAP and Non-GAAP Results
(Amounts expressed in thousands of USD, except for share, per share (or ADS) data)
	Three months ended

	Sep 30,		Jun 30,	Sep 30,
	2024		2024	2023
	US$		US$	US$

GAAP operating (loss)/income	(174	)	967	(2,515	)
Share-based compensation expenses	531		631	1,106
Non-GAAP operating income/(loss)	357		1,598	(1,409	)

GAAP net income	4,376		2,520	4,365
Share-based compensation expenses	531		631	1,106
Non-GAAP net income	4,907		3,151	5,471

GAAP earnings per share for common shares:
Basic	0.0145		0.0086	0.0134
Diluted	0.0145		0.0086	0.0134

GAAP earnings per ADS:
Basic	0.0725		0.0430	0.0670
Diluted	0.0725		0.0430	0.0670

Non-GAAP earnings per share for common shares:
Basic	0.0161		0.0106	0.0168
Diluted	0.0161		0.0105	0.0167

Non-GAAP earnings per ADS:
Basic	0.0805		0.0530	0.0840
Diluted	0.0805		0.0525	0.0835

Weighted average number of common shares used in calculating:
Basic	317,410,168		320,688,429	328,229,170
Diluted	317,921,168		320,922,960	328,738,450

Weighted average number of ADSs used in calculating:
Basic	63,482,034		64,137,686	65,645,834
Diluted	63,584,234		64,184,592	65,747,690

CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 6111 1571
Website: http://ir.xunlei.com

_________________

¹ Non-GAAP net income is a Non-GAAP financial measure. For more information, please see the section of “About Non-GAAP Financial Measures” and the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Lastest news News

Global Oil Market Faces a Million-Barrel Glut Next Year, the IEA Says

14.11.2024 by admin

(Bloomberg) — Global oil markets face a surplus of more than 1 million barrels a day next year as Chinese demand continues to falter, cushioning prices against turmoil in the Middle East and beyond, the International Energy Agency said.

After Texas Capital, BlackRock Files For Two New ETFs With Low Risk. Here's How Their Peers Fared In The Past Year

14.11.2024 by admin

BlackRock has submitted filings to introduce two new money market funds in ETF form on Thursday. These new offerings, named iShares Prime Money Market and iShares Government Money Market ETFs, will comply with the Securities and Exchange Commission’s Rule 2a-7, ensuring high-quality ratings and minimal credit risk.

The move follows Texas Capital Bancshares Inc‘s TCBI launch of the first 2a-7 ETF in September. Financial Times reported on Thursday that both BlackRock funds will focus on securities with maturities of 397 days or less, maintaining a dollar-weighted average maturity of 60 days or fewer and a dollar-weighted average life of 120 days or fewer.

Details on the proposed ETFs’ fees were not disclosed in the filings. Texas Capital’s ETF charges a fee of 0.20%, while BlackRock’s similar existing ETFs have lower fees, such as the iShares US Treasury Bond ETF GOVT at 0.05% and the 0-3 Month Treasury Bond ETF at 0.09%.

In September, BlackRock liquidated two open-end money market funds in response to upcoming SEC rule changes requiring liquidity fees for prime institutional funds.

The introduction of these ETFs by BlackRock comes amid a significant shift in the money-market industry. Recently, the $6.3 trillion money-market sector saw the launch of its first ETF, the Texas Capital Government Money Market ETF MMKT, which capitalizes on the surge in money-market funds driven by high short-term yields. This ETF offers investors a safe haven with competitive returns, providing intraday liquidity and the stability of traditional money-market funds.

Here’s how some of the existing money market fund ETFs have performed in the past year:

NEOS Enhanced Income 1-3 Month T-Bill ETF CSHI: The fund is managed by Neos Funds and holds $465 million worth of net assets. Its yearly return has been 5.72% compared to the category average of 6.51%.
Invesco Ultra Short Duration ETF GSY: With net assets close to $2.23 billion, the ETF launched by Invesco seeks to provide returns in excess of cash equivalents and provide preservation of capital and daily liquidity. The average duration of maturity is less than a year. The yearly returns of the fund have been 6.76% while the category average is 6.51% and its three-year returns have been 3.62% against the category average of 3.49%.
PGIM Ultra Short Bond ETF PULS: This ETF is issued by PGIM Investments and has net assets close to $8.56 billion. It normally maintains a weighted average portfolio duration of one year or less and a weighted average maturity of three years or less. The fund’s returns in the past year have been 6.53% against the category average of 6.51% while its three-year return has been 4.33% against the category average of 3.49%.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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Interest rate cuts spark real estate optimism for 2025 in Canada's top ski destinations

14.11.2024 by admin

As falling rates reassure consumers, aspiring recreational homebuyers will firm up purchase plans, Royal LePage predicts

Royal LePage^®is forecasting a 7.5% increase in single-family home prices over the next year in popular ski regions across the country.
National single-family home prices in Canada’s winter recreational market remained flat, posting a 0.4% decrease year over year in the first nine months of 2024.
More than one-third (38%) of Royal LePage recreational property market experts reported a surge of inquiries from clients when changes to capital gains tax were announced.
Effects of climate change continue to create drier and hotter conditions, increasing reliance on snow-making technologies for winter resorts.

TORONTO, Nov. 14, 2024 /CNW/ – According to the Royal LePage Winter Recreational Property Report released today, home prices in Canada’s popular ski regions^¹ remained virtually flat year over year in the first nine months of 2024. Nationally, the median price of a single-family detached home decreased a modest 0.4 per cent year over year to $948,800. This specific segment of the market mirrors trends seen in urban markets across the country, which have posted stagnant buying and selling activity amidst higher borrowing costs. Activity and prices are expected to regain momentum in 2025, as lending conditions continue to improve.

“Much like the mainstream urban housing market, sales activity in Canada’s recreational regions has been treading water over the past year. The time it takes to sell a property has been longer than normal over the past year; what we call ‘days on market.’ Yet, recreational home prices have remained stable as low supply balanced sluggish buyer demand,” said Phil Soper, president and chief executive officer, Royal LePage. “This is a testament to the resilience of the winter recreational segment, even under the pressure of the 2023-2024 high interest rate environment, which has caused many buyers in all areas of the market to pull back from their purchase plans.

_____________________________

¹ Median price and sales data for 18 popular ski regions across Canada was compiled and analyzed by Royal LePage for the periods between January 1, 2024 and September 30, 2024, and January 1, 2023 and September 30, 2023. Data was sourced through local brokerages and boards in each of the surveyed regions. 2023 price data may vary from the 2023 Winter Recreational Property Report as a result of updated transaction records from local real estate boards and a modified timeframe.

“For most, a winter getaway home is a ‘love-to-have’ and not a ‘must-have.’ Many recreational buyers have the patience to wait for the right property to become available or for rates to drop enough to restore their confidence in the economy. With four rate cuts now under our belt, and more likely to come, the winter rec market will spring to life again. As with urban markets, there is a window of opportunity for buyers, as stable prices intersect with declining borrowing costs.”

The characteristics of winter recreational markets across the country vary from one region to the next. While home sales were down in Ontario, Alberta and most of British Columbia’s ski regions, sales were up on a year-over-year basis in a majority of markets in the province of Quebec.

Two thirds (69%) of Royal LePage recreational property experts across the country reported similar demand in their respective regions for recreational homes, and an increase in inventory (63%) compared to 2023. Seventy-five per cent of experts reported an increase in the average number of days on market.

Market Forecast

Royal LePage is forecasting that the median price of a single-family detached home in Canada’s recreational ski regions will increase 7.5 per cent over the next 12 months to $1,019,960. This forecast is based on the expectation that interest rates will continue to decline in the first half of 2025, coaxing buyers back to the market as consumer confidence improves.

“Though a portion of recreational homebuyers do not use traditional financing methods – either because they buy in cash or utilize equity from their primary residence – many use the trajectory of interest rates as a gut check for how the economy is performing and whether or not they should take the plunge into buying that dream vacation home,” added Soper. “With the Bank of Canada expected to make additional cuts to the overnight lending rate over the next several months, consumers will feel increasingly confident about pulling the trigger on that winter cabin or mountain chalet purchase. This will result in upward pressure on prices, especially in supply-strapped markets.”

Falling interest rates prompt little initial reaction from recreational buyers

In June 2024, the Bank of Canada lowered its target for the overnight lending rate by 25 basis points to 4.75 per cent, marking the end of a two-decade high. Since then, the overnight rate has decreased three additional times, dropping to 3.75 per cent for the first time in two years.^²

Despite the long-awaited cuts to borrowing costs, reaction to decreased interest rates has been modest thus far in the recreational real estate segment. When asked how lower interest rates have impacted demand in their region in recent months, 75 per cent of Royal LePage recreational property experts reported similar demand to last year in their respective markets; 19 per cent of experts reported more demand.

“Although recreational property owners are less likely to have a monthly mortgage payment when compared to owners in cities, the impact of elevated rates these past two years have not left them unscathed. Many cabin and chalet buyers have a mortgage on their primary residence, which has left some cash-strapped and hesitant to move forward on the purchase of a vacation home. In some cases, owners and investors have had to downsize or offload recreational homes. In a time when short-term rentals are facing increasingly stringent regulatory measures, leasing your winter property to offset expenses is not the straightforward solution it once was,” said Soper.

“With rates falling, we foresee that buyers who have been waiting on the sidelines will start to get serious again as soon as market competition heats up.”

The Bank of Canada is widely expected to cut its key lending rate again at the next announcement on December 11th.

Updated capital gains tax triggered cottage country commotion

In its 2024 federal budget, released on April 16th, the Canadian government announced that it would be updating its policy on capital gains tax, increasing the inclusion rate on capital gains realized annually above $250,000 from one-half to two-thirds. The change came into effect on June 25th.^³

Capital gains tax is applicable on the sale of non-primary residences, which includes recreational properties. During its roll out, the updated legislation triggered many questions from existing property owners and those with homes for sale. More than one-third (38%) of Royal LePage recreational property experts reported a surge of inquiries from clients around the time the updated capital gains tax change was announced.

“Canadians were not given much runway to react, from the time the changes to capital gains were first unveiled to when they officially came into effect. It would have been challenging for homeowners to list, sell and close on a property before June 25th, in order to beat the increased inclusion rate. The updated tax law left some sellers scrambling for a quick sale,” said Soper. “The tax change will materially impact Canada’s investor segment, both in the urban and recreational areas of the country. Contrary to government efforts to create much-needed housing supply for the one-third of Canadians who currently rent, revisions to the tax law discourage entrepreneurial investment in housing.”

To date, although the measure has been announced and legislative proposals tabled, the final regulations have not yet been adopted. Many analysts and players in the real estate market are keeping a close eye on developments in this matter, especially in a context where future federal elections could change the game.

Frequent climate events becoming a greater threat

The effects of climate change continue to impact countries around the world, including Canada.

This summer, several Canadian cities were hit with extreme weather events. On July 17th, a sudden torrential downpour flooded major transit routes and left thousands of people without power in downtown Toronto. Less than a month later on August 5th, a storm that produced baseball-sized hail caused $2.8 billion in insured losses in Calgary, the second most-expensive insured event in Canadian history.^⁴ And, Montreal experienced record-breaking single-day rain accumulation and subsequent flooding on August 9th. According to the Communauté métropolitaine de Montréal (CMM), which includes 82 municipalities in the area, the number of properties located in flood zones in the Greater Montreal Area doubled during the most recent floodings.^⁵

Canada’s recreational regions are not immune to such disasters. Rising average temperatures are creating increasingly hot and dry conditions, making forests more vulnerable to fires. In mid-July, Alberta’s Jasper National Park – part of UNESCO’s Canadian Rocky Mountain Parks World Heritage Site – recorded its largest wildfire in a century, resulting in the loss of more than 32,000 hectares of forest. Triggered by a lightning strike, the fire consumed 30 per cent of structures in the Municipality of Jasper, including 820 housing units,^⁶ which has left many local residents displaced. Parts of the park remain closed as the community works to rebuild.

“No one is spared from the impacts of climate change. Extreme weather events as a direct result of our warming planet are becoming increasingly frequent and perilous, and Canada’s beloved recreational regions are suffering. Natural disasters aside, rising temperatures are making snowy days less frequent, placing further reliance on snow-making technology to ensure ski resorts can operate,” said Soper. “That said, it is worth noting that Canada’s more northerly ski destinations do have more consistent below-freezing temperatures than American and European resort towns, making snow preservation much more reliable. Still, it has never been more important for governments to commit to and follow through on climate action.”

Data chart – Royal LePage 2024 Winter Recreational Property Report: rlp.ca/table-2024-winter-recreational-report

REGIONAL SUMMARIES

QUEBEC

In the first nine months of the year, the median price of a single-family detached home in the province of Quebec’s popular ski regions increased 4.9 per cent year over year to $521,300, while the median price of a condominium decreased 5.1 per cent to $370,600. In the province’s recreational market, the median price of a single-family detached home is forecast to increase 6.0 per cent over the next 12 months.

Mont-Tremblant
(Mont-Tremblant, Mont-Blanc, La Conception)

During the first nine months of the year, the median price of a single-family detached home in the Mont-Tremblant area increased 10.8 per cent compared to the same period in 2023, to reach $576,000, with sales recording a 5.9 per cent increase. The median price of a condominium in the region fell 13.1 per cent over the same period to $391,000. Sales in this segment of the market rose by 2.0 per cent.

“Property enquiries surged in the second half of the year in Tremblant, as the Bank of Canada adjusted its key lending rate downwards. However, this renewed interest did not translate into a significant increase in sales,” explained Corina Enoaie, manager and residential and commercial real estate broker with Mont-Tremblant Real Estate, a division of Royal LePage. “The majority of recent transactions in the region involve recreational properties rather than investments. Mont-Tremblant remains a valuable choice for local and international buyers, especially as the region is exempt from the ban on residential property purchases by non-Canadians.”

Enoaie adds that the Mont-Tremblant region has adapted quickly to the emergence of short-term rental platforms. As an internationally renowned tourist destination, some rules and restrictions on rentals have been in place for several years. These carefully crafted regulations are designed to preserve the local quality of life, while allowing investors to benefit from a clear and well-defined framework for renting out recreational properties.

For those looking for property slopeside, the current minimum price threshold is approximately $1,400,000 for a single-family detached home and $150,000 plus taxes for a condominium (condo-hotel).

Enoaie has also noted a considerable increase in sales of luxury properties in the Mont-Tremblant area this year. For 2025, she expects prices to rise steadily.

Royal LePage forecasts that the median price of single-family detached homes in the region will rise 8.0 per cent over the next 12 months.

Mont Saint-Sauveur
(Saint-Sauveur, Morin-Heights, Piedmont)

In the first nine months of the year, the residential real estate markets near Mont Saint-Sauveur saw positive momentum in sales and prices. In the region, the median price of a single-family home rose 3.4 per cent over the same period in 2023 to $610,000. Meanwhile, sales rose by 9.3 per cent. The median price of a condominium in the region also posted an increase, climbing 17.1 per cent compared to the first nine months of 2023 to $415,000. Sales in this segment rose 7.6 per cent.

“The price increase for single-family homes in the Mont Saint-Sauveur area was not as strong as it was at this time last year, but it remained steady, which shows that the appeal of the Laurentians’ real estate market has endured,” said Éric Léger, residential and commercial real estate broker, Royal LePage Humania E. L. “Inventory of properties has improved, providing a better buying experience for buyers, while home values remained healthy, allowing owners to maintain equity in their real estate portfolio.”

To explain the considerable price appreciation in the condominium segment, Léger attributes it primarily to affordability.

“During the period of higher interest rates in 2024, some aspiring buyers opted for condo ownership rather than waiting until they could afford a single-family home, especially since the gap between the two property types has widened in recent years,” he noted. “That said, this increased demand has inevitably put upward pressure on condominium prices. I would also say that, unlike more urban environments, condominiums in Saint-Sauveur are well located, close to services and ski slopes, which makes them all the more attractive.”

For those looking for a property slopeside in Saint-Sauveur, the current minimum price threshold is approximately $800,000 for a single-family home and $600,000 for a condominium.

“I see the Bank of Canada’s efforts to stimulate the economy as a good thing for the real estate market north of Montreal,” said Léger. ‘I’m expecting an additional surge in demand from buyers who will enjoy greater purchasing power. This will contribute to a moderate rise in prices,” he continued.

Royal LePage forecasts that the median price of a single-family detached home in the region will increase 7.0 per cent over the next 12 months.

Val Saint-Côme et Mont Garceau
(Saint-Côme, Saint-Donat)

In the first nine months of the year, the median price of a single-family home near Val Saint-Côme and Mont Garceau rose by a modest 2.1 per cent over the same period in 2023, to $446,000, while sales contracted by 12.9 per cent.

For those looking for a property slopeside, the minimum price threshold is approximately $400,000 for a single-family home.

“The Lanaudière winter recreational markets remained relatively stable in 2024,” said Éric Fugère, residential real estate broker with Royal LePage Habitations. “Although mortgage conditions improved, they did not create any substantial movement in real estate demand. Buyers have become more demanding and resolute in their decisions, especially if the list price of the property they are interested in is not in line with market value,” he added.

According to Fugère, mining exploration activities in the region could disrupt the resort real estate market in years to come if they obtain the necessary environmental approvals to go ahead.

“At present, mining exploration activities are generating a great deal of opposition from local residents, who are complaining about the noise pollution caused by the comings and goings of trucks, as well as the risk of environmental impact,” he said. “Some are already voicing concerns about the potential contamination of a number of lakes and the destruction of wetlands, which could have a serious impact on property owners and the attractiveness of the region. It is essential that local communities are able to preserve their way of life and that mining activities are carried out in a respectful manner without intruding on the daily life of local residents.”

In the shorter term, Fugère expects property prices to increase slightly in 2025, as buyers and sellers continue to ‘play hardball’ in their negotiations.

Royal LePage forecasts that the median price of a single-family detached home in the Val-St-Côme and Mont Garceau markets will increase 3.0 per cent over the next 12 months.

Bromont, Mont Sutton (Sutton, Brome et Lac Brome) and Mont Orford (Orford et Magog)

Of the three regions analyzed in the Eastern Townships, the Bromont region saw the strongest increase in the median price of single-family homes, rising 13.8 per cent between January 1 and September 30, 2024, compared to the same period in 2023, to reach $718,000. Sales in the region were down 4.0 per cent in this segment. For its part, the Mont Orford region recorded a moderate increase of 5.7 per cent compared to the same period in 2023, reaching $539,000. The median price of a single-family detached home near the Mont Sutton ski area fell by 17.9 per cent year over year in the first nine months of the year to $575,000, a decrease of $125,000. Single-family detached home sales in the regions of Mont Orford and Mont Sutton increased 13.4 per cent and 5.0 per cent, respectively.

In the condominium segment, the median price near Mont Orford increased 3.2 per cent, while it declined by 14.6 per cent year over year in Bromont, to $320,000 and $474,200 respectively. Condominium sales in Mont Orford rose 10.7 per cent, while they fell by 19.4 per cent in Bromont.

“In the Eastern Townships’ winter recreational markets, demand fluctuated on the fringes of an uncertain economy, but property prices remained on the rise in most locations,” said Véronique Boucher, residential real estate broker with Royal LePage Au Sommet. “First-time buyers are slowly returning to the market, confident that interest rates will continue to decline slightly and make way for greater affordability. Days on market have been getting longer, but the Bank of Canada’s latest interest rate announcements provide some hope that activity will pick up in the fourth and final quarter of the year.”

For those looking for property slopeside, the current minimum price threshold is approximately $950,000 for a single-family home in Bromont, while it stands at $800,000 in Mont Orford and Mont Sutton. A condominium by the slopes starts at $450,000 in Orford and $550,000 in Bromont.

Royal LePage forecasts that the median price of a single-family detached home will increase 7.0 per cent in Bromont, 5.0 per cent in Mont Sutton and 4.0 per cent in Mont Orford over the next 12 months.

Mont Sainte-Anne
(Beaupré, Sainte-Anne-de-Beaupré, Saint-Ferréol-les-Neiges, Saint-Joachim)

In the Mont Sainte-Anne area, the median price of a single-family home jumped 13.6 per cent year over year to $335,000. Sales in this segment were up 43.0 per cent. In the condominium segment, the median price fell 12.5 per cent year over year to $220,000. Condominium sales in this region followed prices, declining by 18.3 per cent over the same period.

For those looking for a property slopeside, the entry-level price is approximately $530,000 for a single-family detached home and close to $400,000 for a two-bedroom condominium.

According to Michèle Fournier, a chartered real estate broker and vice-president of Royal LePage Inter-Québec, the dwindling supply of short-term rental condominiums is one of the reasons for the drop in prices and sales in this segment of the market.

“More and more, condominium boards are limiting the rights of tenants in short-term rentals on Mont Sainte-Anne,” said Fournier. “Some even go so far as to prohibit stays of less than 30 days, while others limit access to common facilities such as swimming pools only to owner-occupiers, to prevent short-term tenants from disrupting the quality of life of other owners. These restrictions contribute to a reduced supply of Airbnb properties in the area, which can have a significant impact on sales and prices.”

Royal LePage forecasts that the median price of a single-family detached home on the outskirts of Mont Sainte-Anne will increase 5.0 per cent over the next 12 months.

Stoneham/Lac-Beauport
(Stoneham-et-Tewkesbury, Lac Delage, St-Gabriel-de-Valcartier, Lac-Beauport)

In the first nine months of the year, the Stoneham/Lac-Beauport ski area saw the strongest increase in the median price of a single-family detached home in the province of Quebec, climbing 20.9 per cent year over year to $555,000. Sales also rose by 14.4 per cent over the same period.

“With a relatively stable inventory of properties for sale, the Stoneham/Lac-Beauport ski area has seen a considerable increase in the price of single-family homes this year,” explained Michèle Fournier, chartered real estate broker and vice-president, Royal LePage Inter-Québec. “What’s more, the region is attracting a growing number of professionals looking to settle here permanently, which is contributing to strong real estate demand.”

For those looking for a property slopeside, the minimum price today is approximately $600,000 for a single-family detached home.

Fournier expects the decline in interest rates will drive price appreciation in 2025, while consumers will see their purchasing power grow.

“For a relatively large proportion of the population, as financial capacity increases, so does the desire to afford more,” she said. “On the one hand, buyers who have been on the sidelines will see this as an opportunity to get on the property ladder. On the other, existing homeowners may be tempted to upgrade by moving to a property that offers more space and a better quality of life.”

Royal LePage forecasts that the median price of a single-family detached home in the Stoneham/Lac-Beauport market will increase 10.0 per cent over the next 12 months.

Massif de Charlevoix (Charlevoix-ouest)
(Baie-Saint-Paul, Les Éboulements, Isle-aux-Coudres, Petite-Rivière-Saint-François, Saint-Hilarion, Saint-Urbain)

Over the first nine months of the year, the median price of a single-family detached home near Le Massif de Charlevoix fell by 17.9 per cent year over year to $327,500, while sales rose 12.1 per cent over the same period. This is a stark contrast to the sharp rise in prices seen in 2023.

For those looking for a property slopeside, the minimum price threshold today is approximately $450,000 for a single-family detached home.

“The period of higher interest rates pushed prices down in the Charlevoix-Ouest region as sellers clung to higher market values from the pandemic era,” reports Denis Lavoie, residential and commercial real estate broker at Royal LePage Blanc & Noir. “This has led to price adjustments and more negotiation between buyers and sellers this year.”

However, Lavoie expects a more dynamic transaction period that will lead to a stabilization of prices over the coming months.

Royal LePage expects the median price of a single-family detached home in the region to increase 3.0 per cent over the next 12 months.

Mont Grand Fonds (Charlevoix-est)
(La Malbaie, Clermont, Saint-Siméon, Saint-Aimé-des-Lacs, Notre-Dame-des-Monts, Sainte-Irénée, Baie Sainte-Catherine)

In the first nine months of the year, the median price of a single-family detached home near Mont Grand Fonds de Charlevoix rose 5.9 per cent year over year to $250,000. Sales were also up over the same period, increasing by 2.2 per cent.

“Upcoming investments in the municipality of Charlevoix-est should stimulate activity and property prices in the coming year,” noted Denis Lavoie, residential and commercial real estate broker, Royal LePage Blanc & Noir. “The construction of a new hospital, which will help create new jobs, combined with real estate investments in the region, are among the real estate demand factors that will help push prices moderately higher in 2025.”

Royal LePage forecasts that the median price of a single-family detached home in the markets surrounding Mont Grand Fonds will increase 5.0 per cent over the next 12 months.

Data chart – Royal LePage 2024 Winter Recreational Property Report: rlp.ca/table-2024-winter-recreational-report

ONTARIO

Southern Georgian Bay (Collingwood/Meaford/Thornbury)

The median price of a single-family detached home in Southern Georgian Bay’s recreational property market for the first nine months of the year decreased 4.7 per cent year over year to $853,000. Meanwhile, the median price of a condominium decreased 3.5 per cent to $627,000 during the same period. For those looking to buy a house or condominium slopeside or at mountain base, prices typically start at $1,500,000 and $450,000, respectively. Total sales were down 9.9 per cent year over year in the region.

“Recreational buyers have yet to demonstrate a strong reaction to lower interest rates. We continue to see potential purchasers sitting on the fence, hoping to be the beneficiaries of additional cuts to borrowing costs. As a result, with new listings and sales activity in a holding pattern, we have watched recreational prices continue to soften,” said Desmond von Teichman, broker, Royal LePage Locations North. “The rental market has also slowed. Renters are very selective about the types of properties they want to lease, which has caused some inventory to sit and prices to come down. With most municipalities moving towards a system that will require short-term rental licensing, we expect many future leases will need to exist in owner-occupied homes or outside of the area.”

Von Teichman added that Southern Georgian Bay did not see a lot of natural snowfall last winter, which meant resorts had to rely on snow-making technology to create powder in greater volumes. Areas outside of the resorts, where consumers cross-country ski and snowmobile, do not have this advantage and have had a harder time maintaining snow levels for recreational visitors.

“Looking ahead, we foresee more homebuyers moving off the sidelines as lending rates continue to ease, resulting in a steady increase to recreational prices,” said Von Teichman. “Given that inventory levels remain low, I predict an influx of demand could quickly put upward pressure on prices, as consumers feel more confident about the trajectory of the market and seek to benefit from lower borrowing costs.”

Royal LePage is forecasting that the median price of a single-family detached home in Southern Georgian Bay will increase 10.0 per cent over the next 12 months.

Data chart – Royal LePage 2024 Winter Recreational Property Report: rlp.ca/table-2024-winter-recreational-report

ALBERTA

Canmore

The median price of a single-family detached home in Canmore’s recreational property market for the first nine months of the year increased 4.4 per cent year over year to $1,670,000, while the median price of a condominium increased 9.8 per cent to $765,000. For those looking to buy a house or condominium adjacent to the Canmore Nordic Centre, prices typically start at $1,000,000 and $750,000, respectively. Total sales were down 3.6 per cent year over year in the region.

“Canmore continues to settle back to pre-pandemic sales volumes and price growth. Inventory levels have gradually risen this past year, yet we are still far below historical averages. This has helped to keep prices moving upward. The number of days listings are sitting on the market has increased modestly this past year, which – along with recent global geopolitical unrest and the lead up to the American presidential election – has contributed to slightly more balanced conditions as consumers adopt a wait-and-see approach,” said Brad Hawker, associate broker, Royal LePage Solutions. “Many recreational and pre-retirement buyers in this market pay in cash and are therefore not overly-sensitive to interest rates. By and large, purchasers in this market are more than willing to wait for the right property to come along, regardless of rates.”

Demand for recreational properties in Canmore continues to be driven by locals from Calgary, Edmonton and other surrounding Alberta communities, added Hawker. However, post-pandemic, the region does receive more interest from clients located in British Columbia, the Prairies, Ontario and as far as Quebec. A large portion of these buyers are looking for a property where they can enjoy an active retirement close to the slopes and outdoor amenities.

“Canmore continues to enhance its walkability and make the area more bike-friendly through such initiatives as lowering its traffic speed limits and improving the already extensive bike and walking trail system. Making the community more geared towards pedestrians has helped to encourage new short-term rental projects, as the ease of access to downtown improves for owners and visitors,” said Hawker. “I expect that local buyers will gradually move back into the market in the first half of next year, especially if we see interest rates fall another 100 to 125 basis points by mid-2025. Lower rates will also help to ease carrying costs for the small pool of homeowners that have some mortgage financing. In turn, this may encourage investors to purchase an additional legal short-term rental unit as their borrowing power improves.”

Royal LePage is forecasting that the median price of a single-family detached home in Canmore will increase 3.5 per cent over the next 12 months, as balanced market conditions persist.

Data chart – Royal LePage 2024 Winter Recreational Property Report: rlp.ca/table-2024-winter-recreational-report

BRITISH COLUMBIA

In the first nine months of the year, the median price of a single-family detached home in British Columbia’s popular ski regions decreased 2.6 per cent year over year to $1,729,200, while the median price of a condominium also decreased 2.6 per cent to $477,500. In the province’s recreational market, the median price of a single-family detached home is forecast to increase 8.5 per cent over the next 12 months.

Whistler

The median price of a single-family detached home in Whistler’s recreational property market for the first nine months of the year decreased 3.0 per cent year over year to $3,569,100, while the median price of a condominium decreased 12.4 per cent to $583,600. For those looking to buy a house or condominium slopeside or at mountain base, prices typically start at $3,000,000 and $500,000, respectively. Total sales were down 25.0 per cent year over year in the region.

“The Whistler market has experienced less demand and growing inventory lately, tilting market conditions in favour of the buyer and pushing prices down. Though we have experienced less snowfall than in previous years, buyers are still attracted to the region for the prolonged biking season,” said Frank Ingham, associate broker, Royal LePage Sussex. “While the recent changes to the capital gains tax inclusion rate did not result in a sudden rush of transactions in most other markets, Whistler was a rare exception. Shortly after the announcement, I worked with multiple clients who became highly motivated to make a quick sale prior to the new legislation coming into effect. The increase to the capital gains inclusion rate was the catalyst for some clients to pull the trigger early on selling their winter property, or accept a lower offer price – that was previously off the table – in order to move a sale along.”

Earlier this year, the B.C. government introduced stricter measures on short-term rentals. As a result of strict enforcement of rental laws, Ingham says that most clients are planning to use their recreational property for themselves and their families.

“Though lowered interest rates have given consumers greater confidence on the trajectory of the real estate market overall, many buyers remain on hold temporarily, looking ahead to additional rate cuts,” said Ingham. “Should we see another decrease this December, I expect more purchasers will jump back in. As the bottom of the market appears, many will look to get ahead of a potential surge in prices in the spring.”

Royal LePage is forecasting that the median price of a single-family detached home in Whistler will increase 9.0 per cent over the next 12 months, as falling interest rates encourage buyers back to the market.

Invermere

The median price of a single-family detached home in Invermere’s recreational property market for the first nine months of the year increased 13.5 per cent year over year to $749,000, while the median price of a condominium increased 11.4 per cent to $344,900. For those looking to buy a house or condominium slopeside or at mountain base, prices typically start at $710,000 and $355,000, respectively. Total sales were down 6.4 per cent year over year in the region.

“Although Invermere’s inventory levels are higher than in 2023, the region remains historically undersupplied, which has contributed to price growth this past year. Still, buyers have benefited from better selection and more wiggle room to negotiate. Since interest rates started to come down in June, we have noticed a gradual increase in demand,” said Barry Benson, broker, Royal LePage Rockies West Realty. “Given our relative affordability and proximity to the Alberta border, many of our clients are from Calgary. As interest rates continue to dip lower over the coming months, we expect to receive more calls from our neighbours to the east. Borrowing power increases with every rate cut made by the Bank of Canada.”

Benson added that Invermere recreational buyers like to have the option to lease out their properties for short-term rental purposes in order to offset ownership expenses. Similar to the resale market, the supply of rental homes in the region was higher than normal during the recent peak of mortgage costs.

“Reduced interest rates will put additional pressure on the limited supply that we currently have. Buyers are already making a return to the market to get ahead of further price increases,” said Benson. “We forecast that this momentum will pick up speed heading into the spring.”

Royal LePage is forecasting that the median price of a single-family detached home in Invermere will increase 10.0 per cent over the next 12 months.

Revelstoke

The median price of a single-family detached home in Revelstoke’s recreational property market for the first nine months of the year increased 4.9 per cent year over year to $862,500, while the median price of a condominium increased 14.3 per cent to $802,000. For those looking to buy a house or condominium slopeside or at mountain base, prices typically start at $5,000,000 and $900,000, respectively. Inventory for slopeside houses is extremely limited in Revelstoke. Total sales were down 1.0 per cent year over year in the region.

“Although interest rates have improved buyers’ borrowing power, sales activity in Revelstoke has been subdued as of late. Cheaper mortgage costs have not had a significant impact on transactions, as many purchasers continue to wait for more cuts. This may change if we see rates come down further in the new year, which may very well cause home prices to surge in light of reduced inventory levels,” said Don Teuton, broker and owner, Royal LePage Revelstoke. “Dwindling home supply has helped to keep home prices on an upward trajectory. Still, Revelstoke continues to provide recreational properties at a more accessible price point compared to other communities. Many of our clients come from within the province, in addition to Alberta and Ontario, seeking to enjoy the region’s mountainous terrain, hiking and golfing opportunities.”

Teuton added that demand for rental properties has remained steady. With interest rates now on a downward slide, rental hosts are feeling less pressure from heightened monthly carrying costs, resulting in improved return on investment.

“I expect we will see continuous demand for personal and rental properties in Revelstoke heading into 2025, especially as the cost of borrowing becomes cheaper,” said Teuton. “However, this will put a strain on the low supply of affordable housing options, and upward pressure on prices.”

Royal LePage is forecasting that the median price of a single-family detached home in Revelstoke will increase 5.0 per cent over the next 12 months.

Mount Washington

The median price of a single-family detached home in Mount Washington’s recreational property market for the first nine months of the year increased 29.4 per cent year over year to $1,100,000, while the median price of a condominium decreased 1.1 per cent to $455,000.^⁷ For those looking to buy a house or condominium slopeside or at mountain base, prices typically start at $1,000,000 and $392,000, respectively. Total sales were down 6.3 per cent year over year in the region.

_______________________________

⁷ Significant fluctuations in year-over-year price changes are due to low sales volumes, which are typical for the region.

“While few homes trade hands in this region in any given year, we have seen a material increase in home prices with the launch of new construction projects, specifically single-family units that start above the $1 million mark. Inventory levels and days on market have been on the rise, giving homebuyers more options to choose from,” said Val Wright, sales representative, Royal LePage In The Comox Valley. “Our market continues to see a generous portion of clients purchasing properties for short-term rental usage. Restrictions implemented by the provincial government this year do not impact the region, as land within mountain resort boundaries is often exempt under this legislation, and therefore have not curbed rental market activity. The majority of properties on Mount Washington are rented on a short-term basis when owners are not making use of their recreational homes.”

Wright noted that recent changes to the capital gains tax triggered a number of inquiries from concerned clients about their property’s value.

“Though we did not experience a great snow season last year, much like all ski resorts in British Columbia, warmer weather conditions have not had a material impact on buyer interest here. Locals on Vancouver Island continue to make up the majority of clients in our market, as skiing enthusiasts seek out the slopes of Mount Washington and the region’s all-season recreational offerings,” said Wright. “With interest rates expected to keep declining into the spring and consumer confidence in the market strengthening as a result, we expect to see a modest increase in prices next year, as demand trends upward.”

Royal LePage is forecasting that the median price of a single-family detached home in Mount Washington will increase 2.0 per cent over the next 12 months.

Sun Peaks

The median price of a single-family detached home in Sun Peaks’ recreational property market for the first nine months of the year decreased 30.1 per cent year over year to $1,337,500, while the median price of a condominium decreased 14.3 per cent to $360,000.^⁸ For those looking to buy a house or condominium slopeside or at mountain base, prices typically start at $1,748,500, and $310,000, respectively. Total sales were up 13.5 per cent year over year in the region, which is located outside Kamloops, British Columbia.

“Though there has been much frenzy over interest rates in the mainstream market, recent rate decreases have only had a modest impact on the Sun Peaks market, for now. The number of sales recorded in summer and early fall was higher in 2024 compared to the previous year. And, the average days on market has decreased slightly, signaling growing demand, though inventory remains well stocked,” said Kyle Panasuk, sales representative, Royal LePage Westwin Realty. “Despite this slow progress, it is an improvement from last year, when rising interest rates put a huge damper on home sales, and average days on market dramatically increased.”

_______________________________

⁸ Significant fluctuations in year-over-year price changes are due to low sales volumes, which are typical for the region.

Panasuk added that consumer demand is largely driven by local buyers from the Kamloops region. In addition to the area’s hundreds of acres of skiable land, buyers are drawn to Sun Peaks for its alpine biking, hiking and golfing amenities.

“As interest rates continue to drop into early 2025, we expect that buying and selling activity will gradually ramp up as borrowing power increases,” said Panasuk. “This will put upward pressure on prices as consumers look to secure their winter getaway home.”

Royal LePage is forecasting that the median price of a single-family detached home in Sun Peaks will increase 5.0 per cent over the next 12 months, as lower interest rates accelerate buyer demand.

Big White

The median price of a single-family detached home in Big White’s recreational property market for the first nine months of the year decreased 13.7 per cent year over year to $1,510,000, while the median price of a condominium decreased 22.1 per cent to $413,000. For those looking to buy a house or condominium slopeside or at mountain base, prices typically start at $875,000, and $200,000, respectively. Total sales were down 1.4 per cent year over year in the region, located outside Kelowna, British Columbia.

“Despite lower borrowing rates and ample inventory, we have seen little change in the number of properties trading hands over the last year, which tells us that buyers have taken a step back to evaluate broader turbulent economic conditions. Homes have been sitting on the market for longer, which has translated into price discounts for buyers in both the detached and condominium segments,” said Amanda Cormier, sales representative, Royal LePage Kelowna. “Though reduced rates have helped to boost consumer confidence in the overall market, this has not had a meaningful impact in stimulating sales activity just yet, as most purchasers in our market don’t require a mortgage or are utilizing an alternative financing method, such as a Home Equity Line of Credit.”

Cormier added that the region continues to attract investor clients looking for properties for rental purposes, as Big White is exempt from provincial short-term rental restrictions and the foreign buyer ban. Local families will often rent out their unit during peak periods, to help offset ownership costs, and use the unit for themselves throughout the remainder of the season.

“During the height of the COVID-19 pandemic, we saw an increase in locals purchasing, as fewer families vacationed outside the country. By choosing to stay in communities like Big White, they were able to work remotely and enjoy a slower pace of life. We expect this trend to persist as remote working remains the norm in many industries,” said Cormier. “With the cost of borrowing expected to continue falling in the first half of 2025, this will coax some buyers off the sidelines as they feel greater reassurance about the economy and look to take advantage of available inventory.”

Royal LePage is forecasting that the median price of a single-family detached home in Big White will increase 5.0 per cent over the next 12 months.

Data chart – Royal LePage 2024 Winter Recreational Property Report: rlp.ca/table-2024-winter-recreational-report

Royal LePage Royalty-Free Media Assets:

Royal LePage’s media room contains royalty-free assets, such as images and b-roll, that are free for media use.

About the Royal LePage Winter Recreational Property Report

The 2024 Royal LePage Winter Recreational Property Report compiles insights, data and forecasts from 18 popular ski regions. Median price and sales data was compiled and analyzed by Royal LePage for the periods between January 1, 2024 and September 30, 2024 and January 1, 2023 and September 30, 2023. Data was sourced through local brokerages and boards in each of the surveyed regions. Data availability is based on a transactional threshold and whether regional data is available using the report’s standard housing types. 2023 price data may vary from the 2023 Winter Recreational Property Report as a result of updated transaction records from local real estate boards and a modified timeframe.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.

Royal LePage^® is a registered trademark of Royal Bank of Canada and is used under licence by Bridgemarq Real Estate Services^® Inc.

SOURCE Royal LePage Real Estate Services

View original content: http://www.newswire.ca/en/releases/archive/November2024/14/c2525.html

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Earnings News

Bilibili Inc. Announces Third Quarter 2024 Financial Results

14.11.2024 by admin

SHANGHAI, China, Nov. 14, 2024 (GLOBE NEWSWIRE) — Bilibili Inc. (“Bilibili” or the “Company”) BILI, an iconic brand and a leading video community for young generations in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights:

Total net revenues were RMB7.31 billion (US$1,041.0 million), representing an increase of 26% year over year.
- Mobile games revenues were RMB1.82 billion (US$259.7 million), representing an increase of 84% year over year.
- Advertising revenues were RMB2.09 billion (US$298.5 million), representing an increase of 28% year over year.
Gross profit was RMB2.55 billion (US$363.0 million), representing an increase of 76% year over year. Gross profit margin reached 34.9%, improving from 25.0% in the same period last year.
Net loss was RMB79.8 million (US$11.4 million), narrowing by 94% year over year.
Adjusted net profit¹ was RMB235.9 million (US$33.6 million), compared with an adjusted net loss of RMB863.5 million in the same period last year.
Operating cash flow was RMB2.23 billion (US$317.1 million) in the third quarter of 2024, compared with RMB277.4 million in the same period last year.
Average daily active users (DAUs) were 107.3 million, compared with 102.8 million in the same period last year.

“This quarter, we sustained strong growth momentum across our community metrics and key business lines,” said Mr. Rui Chen, chairman and chief executive officer of Bilibili. “Both DAUs and MAUs hit record highs of 107 million and 348 million, respectively. Users’ average daily time spent also reached a new high of 106 minutes, increasing by 6 minutes compared to the same period last year. With our thriving community and highly engaged user base, we are well-positioned to tap into greater user value through our diverse commercial offerings. Total revenues in the third quarter came in at RMB7.31 billion, increasing by 26% year over year. In particular, revenues from our mobile games and advertising businesses increased by 84% and 28% year over year, respectively. With our consistent effort in improving commercialization efficiency, we achieved our first non-GAAP net profit in this quarter. This milestone is just a new starting point. Going forward, we will further develop our commercial capabilities while reinforcing our community ecosystem, bringing long-term value to all of our stakeholders.”

Mr. Sam Fan, chief financial officer of Bilibili, said, “In the third quarter, robust growth in our high-margin mobile games and advertising businesses accelerated our total revenue growth and significantly expanded our margins. Our gross profit surged by 76% year on year and our gross profit margin rose considerably to 34.9%, up from 25.0% in the same period last year. Consequently, we recorded an adjusted operating profit of RMB272.2 million compared with a loss of RMB755.4 million from the same period of 2023. The significant improvement in our financials showed the elasticity of our business model, as well as the vast commercialization potential within our community. We will build on this landmark and continue to drive sustainable growth in the future.”

Third Quarter 2024 Financial Results

Total net revenues. Total net revenues were RMB7.31 billion (US$1,041.0 million) in the third quarter of 2024, representing an increase of 26% from the same period of 2023.

Value-added services (VAS). Revenues from VAS were RMB2.82 billion (US$402.0 million), representing an increase of 9% from the same period of 2023, led by increases in revenues from live broadcasting and other value-added services.

Advertising. Revenues from advertising were RMB2.09 billion (US$298.5 million), representing an increase of 28% from the same period of 2023, mainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency.

Mobile games. Revenues from mobile games were RMB1.82 billion (US$259.7 million), representing an increase of 84% from the same period of 2023, mainly attributable to the strong performance of the Company’s exclusively licensed game, San Guo: Mou Ding Tian Xia.

IP derivatives and others. Revenues from IP derivatives and others were RMB567.3 million (US$80.8 million), representing a decrease of 2% from the same period of 2023.

Cost of revenues. Cost of revenues was RMB4.76 billion (US$678.1 million), representing an increase of 9% from the same period of 2023. The increase was mainly due to higher revenue-sharing costs and was partially offset by lower content costs. Revenue-sharing costs, a key component of cost of revenues, were RMB2.91 billion (US$414.8 million), representing an increase of 19% from the same period of 2023, mainly due to the increase of mobile games-related revenue-sharing costs.

Gross profit. Gross profit was RMB2.55 billion (US$363.0 million), representing an increase of 76% from the same period of 2023, mainly attributable to the growth in total net revenues, while costs related to platform operations remained relatively stable.

Total operating expenses. Total operating expenses were RMB2.61 billion (US$372.5 million), representing an increase of 2% from the same period of 2023.

Sales and marketing expenses. Sales and marketing expenses were RMB1.20 billion (US$171.3 million), representing a 21% increase from the same period of 2023. The increase was primarily attributable to increased marketing expenses for the Company’s exclusively licensed games.

General and administrative expenses. General and administrative expenses were RMB505.4 million (US$72.0 million), representing a 1% increase from the same period of 2023.

Research and development expenses. Research and development expenses were RMB906.1 million (US$129.1 million), representing a 15% decrease from the same period of 2023. The decrease was mainly attributable to higher termination expenses of certain game projects in the same period of 2023.

Loss from operations. Loss from operations was RMB66.7 million (US$9.5 million), narrowing by 94% from the same period of 2023.

Adjusted profit/(loss) from operations¹. Adjusted profit from operations was RMB272.2 million (US$38.8 million), compared with an adjusted loss from operations of RMB755.4 million from the same period of 2023.

Total other (expenses)/income, net. Total other expenses were RMB21.5 million (US$3.1 million), compared with RMB212.1 million in the same period of 2023. The change was primarily attributable to a gain of RMB17.8 million on fair value change in investments in publicly traded companies in the third quarter of 2024, compared with a loss of RMB137.4 million in the same period of 2023.

Income tax (expense)/benefit. Income tax benefit was RMB8.4 million (US$1.2 million), compared with income tax expense of RMB18.0 million in the same period of 2023.

Net loss. Net loss was RMB79.8 million (US$11.4 million), narrowing by 94% from the same period of 2023.

Adjusted net profit/(loss)¹. Adjusted net profit was RMB235.9 million (US$33.6 million), compared with an adjusted net loss of RMB863.5 million in the same period of 2023.

Basic and diluted EPS and adjusted basic and diluted EPS¹. Basic and diluted net loss per share were RMB0.19 (US$0.03) each, compared with RMB3.26 each in the same period of 2023. Adjusted basic and diluted net profit per share were RMB0.57 (US$0.08) each, compared with an adjusted basic and diluted net loss per share of RMB2.12 each in the same period of 2023.

Net cash provided by operating activities. Net cash provided by operating activities was RMB2.23 billion (US$317.1 million), compared with net cash provided by operating activities of RMB277.4 million in the same period of 2023.

Cash and cash equivalents, time deposits and short-term investments. As of September 30, 2024, the Company had cash and cash equivalents, time deposits and short-term investments of RMB15.23 billion (US$2.17 billion).

Convertible Senior Notes. As of September 30, 2024, the aggregate outstanding principal amount of April 2026 Notes, 2027 Notes and December 2026 Notes was US$432.5 million (RMB3.03 billion).

Share Repurchase Program

The Company announced today that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$200 million of its publicly traded securities for the next 24 months. The Company’s shareholders have approved to grant an annual share repurchase mandate to its board of directors in accordance with the Hong Kong Listing Rules at the Company’s annual general meeting held on June 28, 2024, which shall be valid until the Company’s next annual general meeting unless revoked or varied. The Company also plans to obtain its shareholders’ approval for a share repurchase mandate at its next annual general meeting. The Company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable laws, rules and regulations. The Company plans to fund the repurchases from its existing cash balance.

_{¹Adjusted profit/(loss) from operations, adjusted net profit/(loss), and adjusted basic and diluted EPS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”}

Conference Call

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on November 14, 2024 (8:00 PM Beijing/Hong Kong Time on November 14, 2024). Details for the conference call are as follows:

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.

Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at http://ir.bilibili.com, and a replay of the webcast will be available following the session.

About Bilibili Inc.

Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.

For more information, please visit: http://ir.bilibili.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as adjusted profit/(loss) from operations, adjusted net profit/(loss), adjusted net profit/(loss) per share and per ADS, basic and diluted and adjusted net profit/(loss) attributable to the Bilibili Inc.’s shareholders in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions, income tax related to intangible assets acquired through business acquisitions, gain/loss on fair value change in investments in publicly traded companies, and gain/loss on repurchase of convertible senior notes. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and therefore may not be comparable to similar measures presented by other companies. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred to could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, outlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com

Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com

BILIBILI INC. Unaudited Condensed Consolidated Statements of Operations (All amounts in thousands, except for share and per share data)

	For the Three Months Ended						For the Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2023		2024		2024		2023		2024
	RMB		RMB		RMB		RMB		RMB

Net revenues:
Value-added services (VAS)	2,595,036		2,565,888		2,821,269		7,053,001		7,916,066
Advertising	1,638,232		2,037,491		2,094,427		4,482,876		5,800,502
Mobile games	991,776		1,007,367		1,822,609		3,014,279		3,812,786
IP derivatives and others	580,037		516,398		567,315		1,628,735		1,568,010
Total net revenues	5,805,081		6,127,144		7,305,620		16,178,891		19,097,364
Cost of revenues	(4,354,664	)	(4,293,943	)	(4,758,434	)	(12,397,008	)	(13,111,617	)
Gross profit	1,450,417		1,833,201		2,547,186		3,781,883		5,985,747

Operating expenses:
Sales and marketing expenses	(992,303	)	(1,035,596	)	(1,202,407	)	(2,790,686	)	(3,165,062	)
General and administrative expenses	(499,132	)	(488,039	)	(505,386	)	(1,610,526	)	(1,525,202	)
Research and development expenses	(1,066,155	)	(894,701	)	(906,072	)	(3,140,188	)	(2,765,893	)
Total operating expenses	(2,557,590	)	(2,418,336	)	(2,613,865	)	(7,541,400	)	(7,456,157	)
Loss from operations	(1,107,173	)	(585,135	)	(66,679	)	(3,759,517	)	(1,470,410	)

Other (expenses)/income:
Investment loss, net (including impairments)	(244,961	)	(94,684	)	(70,957	)	(236,640	)	(186,890	)
Interest income	117,722		100,344		91,279		416,022		324,830
Interest expense	(30,064	)	(19,809	)	(17,824	)	(135,746	)	(69,207	)
Exchange losses	(23,871	)	(15,275	)	(5,909	)	(40,423	)	(79,244	)
Debt extinguishment gain/(loss)	9,771		–		–		292,213		(20,980	)
Others, net	(40,695	)	256		(18,134	)	22,633		36,305
Total other (expenses)/income, net	(212,098	)	(29,168	)	(21,545	)	318,059		4,814
Loss before income tax	(1,319,271	)	(614,303	)	(88,224	)	(3,441,458	)	(1,465,596	)
Income tax (expense)/benefit	(17,975	)	6,154		8,419		(73,565	)	13,011
Net loss	(1,337,246	)	(608,149	)	(79,805	)	(3,515,023	)	(1,452,585	)
Net (profit)/loss attributable to noncontrolling interests	(14,198	)	(551	)	290		(10,814	)	15,825
Net loss attributable to the Bilibili Inc.’s shareholders	(1,351,444	)	(608,700	)	(79,515	)	(3,525,837	)	(1,436,760	)
Net loss per share, basic	(3.26	)	(1.46	)	(0.19	)	(8.54	)	(3.45	)
Net loss per ADS, basic	(3.26	)	(1.46	)	(0.19	)	(8.54	)	(3.45	)
Net loss per share, diluted	(3.26	)	(1.46	)	(0.19	)	(8.54	)	(3.45	)
Net loss per ADS, diluted	(3.26	)	(1.46	)	(0.19	)	(8.54	)	(3.45	)
Weighted average number of ordinary shares, basic	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386
Weighted average number of ADS, basic	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386
Weighted average number of ordinary shares, diluted	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386
Weighted average number of ADS, diluted	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386

The accompanying notes are an integral part of this press release.

BILIBILI INC. Notes to Unaudited Financial Information (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Nine Months Ended
	September 30,	June 30,	September 30,	September 30,	September 30,
	2023	2024	2024	2023	2024
	RMB	RMB	RMB	RMB	RMB


Share-based compensation expenses included in:
Cost of revenues	18,808	18,370	26,781	48,710	58,828
Sales and marketing expenses	13,523	13,361	16,015	42,689	41,936
General and administrative expenses	155,511	139,032	133,825	446,724	430,681
Research and development expenses	116,195	88,716	120,490	327,462	289,731
Total	304,037	259,479	297,111	865,585	821,176

BILIBILI INC. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per share data)

	December 31,	September 30,
	2023	2024
	RMB	RMB

Assets
Current assets:
Cash and cash equivalents	7,191,821	7,463,154
Time deposits	5,194,891	3,531,414
Restricted cash	50,000	50,000
Accounts receivable, net	1,573,900	1,516,707
Prepayments and other current assets	2,063,362	1,886,186
Short-term investments	2,653,065	4,239,534
Total current assets	18,727,039	18,686,995
Non-current assets:
Property and equipment, net	714,734	668,022
Production cost, net	2,066,066	1,866,219
Intangible assets, net	3,627,533	3,238,432
Goodwill	2,725,130	2,725,130
Long-term investments, net	4,366,632	4,172,991
Other long-term assets	931,933	663,511
Total non-current assets	14,432,028	13,334,305
Total assets	33,159,067	32,021,300
Liabilities
Current liabilities:
Accounts payable	4,333,730	4,923,826
Salary and welfare payables	1,219,355	1,445,622
Taxes payable	345,250	384,087
Short-term loan and current portion of long-term debt	7,455,753	4,297,045
Deferred revenue	2,954,088	4,106,212
Accrued liabilities and other payables	1,795,519	2,600,074
Total current liabilities	18,103,695	17,756,866
Non-current liabilities:
Long-term debt	646	724
Other long-term liabilities	650,459	540,594
Total non-current liabilities	651,105	541,318
Total liabilities	18,754,800	18,298,184

Total Bilibili Inc.’s shareholders’ equity	14,391,900	13,726,574
Noncontrolling interests	12,367	(3,458	)
Total shareholders’ equity	14,404,267	13,723,116

Total liabilities and shareholders’ equity	33,159,067	32,021,300

BILIBILI INC. Unaudited Selected Condensed Consolidated Cash Flows Data (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Nine Months Ended
	September 30,	June 30,	September 30,	September 30,		September 30,
	2023	2024	2024	2023		2024
	RMB	RMB	RMB	RMB		RMB

Net cash provided by/(used in) operating activities	277,384	1,750,540	2,225,629	(373,774	)	4,613,866

BILIBILI INC. Unaudited Reconciliations of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data)

	For the Three Months Ended						For the Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2023		2024		2024		2023		2024
	RMB		RMB		RMB		RMB		RMB

Loss from operations	(1,107,173	)	(585,135	)	(66,679	)	(3,759,517	)	(1,470,410	)
Add:
Share-based compensation expenses	304,037		259,479		297,111		865,585		821,176
Amortization expense related to intangible assets acquired through business acquisitions	47,734		41,776		41,776		144,036		125,328
Adjusted (loss)/profit from operations	(755,402	)	(283,880	)	272,208		(2,749,896	)	(523,906	)

Net loss	(1,337,246	)	(608,149	)	(79,805	)	(3,515,023	)	(1,452,585	)
Add:
Share-based compensation expenses	304,037		259,479		297,111		865,585		821,176
Amortization expense related to intangible assets acquired through business acquisitions	47,734		41,776		41,776		144,036		125,328
Income tax related to intangible assets acquired through business acquisitions	(5,563	)	(5,407	)	(5,406	)	(16,813	)	(16,220	)
Loss/(Gain) on fair value change in investments in publicly traded companies	137,358		41,311		(17,778	)	(43,875	)	10,347
(Gain)/Loss on repurchase of convertible senior notes	(9,771	)	–		–		(292,213	)	20,980
Adjusted net (loss)/profit	(863,451	)	(270,990	)	235,898		(2,858,303	)	(490,974	)
Net (profit)/loss attributable to noncontrolling interests	(14,198	)	(551	)	290		(10,814	)	15,825
Adjusted net (loss)/profit attributable to the Bilibili Inc.’s shareholders	(877,649	)	(271,541	)	236,188		(2,869,117	)	(475,149	)
Adjusted net (loss)/profit per share, basic	(2.12	)	(0.65	)	0.57		(6.95	)	(1.14	)
Adjusted net (loss)/profit per ADS, basic	(2.12	)	(0.65	)	0.57		(6.95	)	(1.14	)
Adjusted net (loss)/profit per share, diluted	(2.12	)	(0.65	)	0.57		(6.95	)	(1.14	)
Adjusted net (loss)/profit per ADS, diluted	(2.12	)	(0.65	)	0.57		(6.95	)	(1.14	)
Weighted average number of ordinary shares, basic	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386
Weighted average number of ADS, basic	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386
Weighted average number of ordinary shares, diluted	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386
Weighted average number of ADS, diluted	413,983,020		416,287,273		417,849,446		412,676,893		416,475,386

Lastest news News Tech

President and CEO Of Tyler Technologies Makes $5.45M Sale

14.11.2024 by admin

LYNN MOORE JR, President and CEO at Tyler Technologies TYL, reported an insider sell on November 12, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that JR executed a sale of 8,750 shares of Tyler Technologies with a total value of $5,451,400.

The latest update on Wednesday morning shows Tyler Technologies shares up by 0.13%, trading at $619.94.

Unveiling the Story Behind Tyler Technologies

Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts and other local government entities. The company’s three core products are Munis, which is the core ERP system, Odyssey, which is the court management system, or CMS, and payments. The company also provides a variety of add-on modules and offers outsourced property tax assessment services.

Tyler Technologies’s Financial Performance

Revenue Growth: Tyler Technologies’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 9.84%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

Gross Margin: The company shows a low gross margin of 43.7%, suggesting potential challenges in cost control and profitability compared to its peers.
Earnings per Share (EPS): Tyler Technologies’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.78.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.2.

Assessing Valuation Metrics:

Price to Earnings (P/E) Ratio: Tyler Technologies’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 113.18.
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 12.9, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 59.79 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Tyler Technologies’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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