Higher Income Bolster Growth in Pulse Investment Year-End Net Profit

• Supported by higher core revenues and other income gains, Pulse Investments grew its net profit by 74.8% to $1.47Bn (EPS: $0.23) for the financial year ending June 30, 2021. 
• Revenues increased by 19.0% ($128.97Mn) on the back of higher in kind sponsorship, advertising entitlements, model agency income, and revenue from rental of properties. Other income/gains also rose by 92.3% ($538.54Mn). 
• To a lesser extent, the improved bottom-line was also influenced by lower admin and other expenses which declined by 3.1% ($12.36Mn), due to lower spending on areas such as accommodation, meals, bar costs and travel. 
• The performance was tempered by an increase in finance cost and tax expenses of 133.5% ($16.90Mn) and 257.7% ($34.34Mn), respectively. The increase in finance cost was driven by a higher loan interest and overdraft interest expense. 
• Since the start of the year, the company has raised J$2.3Bn in capital, which is largely being used to acquire new property and execute real estate development projects. These investments should improve future rental property income and fair value gains, which will support greater profitability. 
• Pulse’s stock price has remained relatively stable since the start of the year, declining just  0.1%. The stock closed Wednesday’s trading session at a price of $4.82, implying a trailing P/E ratio of 21.0x, which is above the main market average of 16.2x.

(Source: Pulse Investment Financials & NCBCM Research)