Coast Entertainment Posts 30% Revenue Surge, Completes Major Share Buy-Back
Coast Entertainment Holdings Limited reported a robust 30.2% increase in revenue to $62.165 million for the half year ended December 2025, alongside a modest 1.4% rise in net profit. The company also completed a significant 10% on-market share buy-back.
- Revenue up 30.2% to $62.165 million
- Net profit rises slightly by 1.4% to $3.187 million
- No interim dividend declared for the period
- Completed 10% on-market share buy-back costing $17.668 million
- Net tangible asset backing per share increased marginally to $0.56
Strong Revenue Growth Amid Profit Stability
Coast Entertainment Holdings Limited (ASX – CEH) has revealed its half year results for the period ending 30 December 2025, showcasing a significant 30.2% jump in revenue to $62.165 million compared to the previous corresponding period. This surge reflects the company’s ability to expand its top line despite a competitive media and entertainment landscape.
However, the net profit story is more subdued, with a modest 1.4% increase to $3.187 million. It’s worth noting that the prior period’s profit included a one-off insurance income of $5.369 million related to storm damage and business interruption, which inflates the comparative baseline. Stripping out this anomaly, the underlying profit performance suggests steady operational resilience rather than dramatic growth.
Capital Management and Shareholder Returns
In a notable move on the capital management front, Coast Entertainment completed its on-market share buy-back program initiated in November 2024. The company repurchased 43.174 million shares, representing 10% of issued capital, at a total cost of $17.668 million. During the current half, 8.983 million shares were bought back for $3.208 million. This buy-back signals management’s confidence in the company’s valuation and commitment to enhancing shareholder value.
Despite the positive revenue and buy-back activity, Coast Entertainment did not declare an interim dividend for the half year, continuing the trend from the previous period. This decision may reflect a cautious approach to cash flow management or a strategic choice to reinvest earnings amid ongoing market uncertainties.
Balance Sheet and Asset Backing
The company’s net tangible asset backing per share edged up slightly to $0.56 from $0.55 a year earlier, indicating a stable asset base supporting the equity value. No changes in control over entities were reported during the period, suggesting operational continuity without acquisitions or disposals impacting the group structure.
Overall, Coast Entertainment’s half year results paint a picture of steady growth in revenue, cautious profit improvement, and proactive capital management. Investors will be watching closely for further operational details in the full interim financial report and any signals on future dividend policy or strategic initiatives.
Bottom Line?
Coast Entertainment’s strong revenue growth and completed buy-back set the stage for a pivotal second half.
Questions in the middle?
- Will Coast Entertainment declare dividends in the second half or maintain a conservative payout approach?
- How will the company leverage its increased revenue to drive stronger profit growth going forward?
- What impact will the completed share buy-back have on share price momentum and investor sentiment?
