Trans World Reports Jump in Earnings
Trans World Corporation [[TWOC.OB]] shares moved sharply higher after reporting a 36.5% increase in net income. The European casino operator reported net income of $3,704,000, or $0.42 per share, for fiscal 2008, which is up from $2,714,000, or $0.33 per share, a year earlier. The record earnings resulted primarily from 6.3% and 12.6% increases in live-game and slot game attendances, respectively.
Trans World is now trading with a price-earnings multiple of just 6.66x, while its 0.18 PEG ratio may indicate that it is undervalued given its growth rates. EBITDA margins also increased from 14.3% to 16.3%, which indicates an improving cost structure and profit margin. Combined, these fundamentals are good news for investors as the casino company continues to improve.
Trans World operates casinos in the Czech Republic along with German and Austrian borders and manages one casino near Split, Croatia. After an aggressive recapitalization in 2000, the company has applied its expertise in managing casinos and hotels to successfully turn the company to profitability within three years. Now, the company is quickly expanding via acquisitions and joint ventures.
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