Dolphin Cove Delivers a Strong Q2 on Higher Per-Capita Spend 

• Driven by a combination of increased revenue and lower direct costs, Dolphin Cove Limited (DCOVE) delivered a strong wave of earnings in Q2. Earnings for the quarter totalled US$1.07Mn, a 43.1% increase relative to Q2.
• During the quarter, DCOVE welcomed 47,817 visitors, an 8.0% increase over the same period in 2024. This, along with the Easter holiday in April and increased capacity at Yaaman boosted sales across all segments, driving quarterly revenue growth up 10.0%. Per-capita revenue also rose 7.0% year-over-year.
• This was achieved despite a 3.0% drop in arrivals from Sangster International Airport (MBJ) due to a falloff in arrivals from the USA (-5.0%), Canada (-6.0%), and the UK (-22.0%).  The strong topline growth reflects a surge in adventure activities, with Yaaman seeing its attendance up 30.0% compared to 2024.
• Direct costs fell to US$4.78K (from US$545.5K), and disciplined resource management kept Q2 operating costs at 11.1% of revenue (vs 14.1% in 2024), lifting gross profit to US$3.80Mn.
• Despite the stronger Q2 results, 6M net profit slipped 9.4% to US$1.93Mn, reflecting weaker Q1 earnings (-37.8% YoY), which eroded the earnings gains in Q2 as softer revenue owing to adverse weather and fewer cruise calls.
• As at the close of trading on Monday, DCOVE shares closed at J$14.09, reflecting a 23.8% year-to-date decrease. At this price, the shares trade at a P/E of 21.04x, which is above the Junior Market Tourism Sector Average of 16.36x.

(Sources: Dolphin Cove Limited & NCBCM Research)