COVID-19 Impact on Tourism Causes Dolphin Cove to Incur a Net Loss For 2020

• The sharp downturn in the tourism industry was reflected in Dolphin Cove’s financial year ending December, as the company incurred a net loss of US$1.12Mn (-$0.29 cents) relative to a net profit of US$1.61Mn in 2019.
• The pandemic had led a significant decline in visitor arrivals with a session of the cruise activity a key segment for the company. This was compounded by the closure of operation in the second quarter and though operations resumed towards the latter part of the year, activity still remains significantly below pre-COVID levels. Consequently, revenues declined by 71.2% to US$4.27Mn. Other sources of income also declined, such as finance income which fell by 44.7%, but was however offset by the 51.9% reduction in finance costs. A reduction in admin and operating expenses by 56.4% and 51.2%, respectively tempered the deterioration in the company’s performance. The company also benefited from a tax credit of US$305,219 compared to the previous year’s tax expense of US$673,307.
• After decreasing by 8.7% during 2020 to $8.78, Dolphin Cove’s stock price has fallen a further 14.4% since the start of 2021. The stock closed Tuesday’s trading session at $7.52, with a corresponding P/B of 0.78x, which is below the Junior Market Others Average of 5.0x.

(Source: Dolphin Cove Ltd. Financials)