AMTD Digital Inc. (NYSE: HKD) reported remarkable financial results for the six months ended April 30, 2025, with revenue soaring to $73.2 million. This represents an extraordinary increase of 1,085.9% compared to $6.2 million in the same period last year.
### Key Driver of Revenue Growth
The dramatic revenue surge primarily stems from AMTD Digital’s consolidation of The Generation Essentials Group as a subsidiary in October 2024. This strategic move significantly bolstered the company’s media and entertainment segment, fueling growth across several business units.
### Revenue Breakdown and Segment Performance
– **Hotel Operations, Hospitality, and VIP Services:** Income jumped 172.4% year-over-year, reaching $13.6 million.
– **Fashion, Arts, and Luxury Media Advertising:** This segment generated $10.0 million, up from $4.4 million in the prior period.
– **Dividend Income and Fair Value Gains:** The company also recorded $47.9 million from dividends and financial asset revaluations, contributing substantially to overall revenue.
### Profitability and Earnings Per Share
Profit for the period increased by 49.5% to $51.5 million compared to the prior year. However, despite the substantial profit growth, basic earnings per share (EPS) declined to $0.22 from $0.46 in the previous period. This drop in EPS is attributed to share dilution caused by an increased number of outstanding shares, which reduced earnings allocated per share.
### Balance Sheet Highlights
AMTD Digital reported total assets of $899.1 million as of April 30, 2025, equating to $7.17 per share. Net assets stood at $548.0 million, or $4.34 per share, underscoring a solid asset base supporting the company’s expansion.
### Rising Expenses with Expansion
Supporting the rapid growth, operating costs rose notably:
– **Employee Benefit Expenses:** Increased to $8.6 million from $2.2 million year-over-year.
– **Other Expenses:** Grew to $11.0 million from $4.3 million.
– **Finance Costs:** Jumped 51.7% to $6.1 million, reflecting higher bank borrowings and interest-bearing liabilities owed to a non-controlling shareholder.
### Market Reaction and Stock Performance
Following the earnings announcement on October 31, 2025, AMTD Digital’s shares surged 74.56% on heavy trading volume exceeding 3.6 million shares, compared to the typical three-month daily average of 434,000 units. Despite this sharp rally, HKD remains down 15.2% year-to-date and has fallen 45.48% over the past 12 months.
The company currently trades at a high EV/EBITDA multiple of 338.86, indicating investors are paying a significant premium relative to earnings.
### Management Commentary
Chief Financial Officer Xavier Zee attributed the strong performance to the team’s dedication and innovative strategies. He emphasized ongoing plans to expand AMTD Digital’s global footprint and to develop intellectual property-related businesses, aiming to sustain growth across their operating industries.
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AMTD Digital’s financial results highlight robust growth driven by strategic consolidation and diversified revenue streams, despite challenges related to share dilution and rising costs. Investors will be watching closely as the company navigates expansion and market valuation dynamics in the coming months.
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