Leisure, Tourism & Travel

Leisure, Tourism & Travel equity research

Explore the most viewed and latest equity research and media content for companies within the Leisure, Tourism & Travel sector. Companies that operate in this sector provide goods and services related to: airlines, gambling, hotels, tourism, leisure & entertainment.

13 Jan 20

LIBERUM: City Pub Group* - Strong growth, despite subdued Christmas trading

City Pubs grew revenues by an impressive 31% to £59.8m in FY19 helped by LFL sales growth of 1.7% and four large new openings bringing the total number of trading sites to 47. However, Christmas trading was dampened which, alongside a couple of delayed refurbishments and previously flagged higher wage costs, meant profit conversion was lower than anticipated.

Companies: City Pub Group

21 Oct 19

Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP ESRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF

02 Jul 19

Where’s the Value?

Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.

Companies: OPM ALU ANCR BLV CONN CRC STU GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM

11 Nov 19

LIBERUM: GAN* - Take-off in US internet gambling

GAN finds itself in the right place at the right time. An estimated $50m investment building its enterprise software gambling platform and a track-record of delivering innovative solutions to US casino and gaming operators, means GAN has a major head-start on the competition, against a backdrop of accelerating state-by-state regulation of US online gambling.

Companies: GAN Plc

29 Nov 17

N+1 Singer - Cineworld Group - Joining the sector consolidation

Cineworld has responded to press speculation confirming that it is in advanced discussions with Regal Entertainment Group in the USA re a possible cash offer. The proposed price is $23 implying a market cap of c.$4bn - so effectively a reverse takeover. Funding will come via a mixture of debt and a “material equity raise by way of a rights issue”, with management (who own 28% of the equity) committed to invest in the fund raise. The deal would equate to a c.9x FY18 EV/EBITDA which is a c.5% discount to the sector average. We sense the rationale is both strategic and financial as well as opportunistic given the Regal share price has been under pressure in recent months due to weak US cinema attendance newsflow. The deal, if successful would give Cineworld access to the largest cinema market. Regal is the 2nd largest player in the US market with c.560 cinemas. We expect Cineworld management to replicate the success it has had in the UK by upgrading the Regal chain on a selective basis and also driving financial synergies. The deal to our mind is in keeping with the wave of consolidation currently occurring in the cinema industry. We await further information on the deal but see the merits of the move, albeit our expectation was that the next big corporate move by management would be in Europe.

Companies: Cineworld Group

17 Jan 20

Online leads to a good finish to 2019

GVC reported good Q4 19 numbers, with total NGR up by 1%, on a cc basis. The strong performance was driven by online (+11% with gaming up 9% and sports up 15%) which offset another quarter of decline in UK retail (-11%). Following the strong Q4, management upgraded its EBITDA expectations to the higher end of the earlier range (£670-680m). Given our slightly aggressive estimates, we do not expect any significant revisions to our estimates or target price.

Companies: GVC

11 Jul 19

Diversification and scale for online success

The global online gaming market generated c £40bn of gross gaming revenues (GGR) in 2018 and newly regulating markets (the US) are expected to contribute to 7% CAGR to 2023 (according to H2 Gambling Capital (H2GC)). However, while regulated markets have provided significant opportunities for operators to date, government intervention remains a constant threat and legislation is tightening. Some mature markets (notably the UK) have been raising taxes and implementing regulatory burdens, which increases the cost of business. In our view, success will depend on a combination of scale, diversification, proprietary technology and a strong balance sheet. Many of the 12 operators in this report should benefit from these dynamics and sector valuations remain attractive, at 12.6x P/E, 8.2x EV/EBITDA and 6.0% dividend yield for FY19.

Companies: 888 ACX BETSB ORPH GVC GYS OPAP PTEC RNK WMH

10 Sep 19

Cenkos: Arena Events Group Plc - H1/19A Interim Results

Arena's interim results showed strong revenue growth, driven primarily by acquisitions, along with modest LFL growth. We expect a strong performance in the Middle East to be offset by a more challenging environment in the UK and the US, leading us to revise our forecasts downwards.

Companies: Arena Events

25 Nov 19

Growth outlook remains sweet

Cake Box, which announced strong interim results today, benefits from a unique value for money fresh Devon cream egg-free cake product offering, unusually visible growth and high returns on capital associated with its franchise model. The company should continue to add value as a brand manager, food manufacturer, and franchise retailer, with excellent execution.

Companies: Cake Box Holdings

17 Dec 19

Transformative acquisition

Air Partner announced the acquisition of Redline Worldwide last week. Redline is a leading global aviation security services business, which provides training, quality assurance and consultancy as well as software services. The total consideration was £10.0m, representing a Mar. ’19 EV/EBITDA multiple of 12.5x. We have incorporated the acquisition into our forecasts, increasing our FY21 PBT forecast by 14% (first full year of ownership). The acquisition is transformative for the Group, significantly increasing the scale of the Consulting & Training (C&T) division, which we now expect to represent 14% of operating profit in FY21 (vs. 6% previously). We believe this deal is attractive with scope for outperformance given significant cross selling opportunities.

Companies: Air Partner

09 Jan 20

Christmassy performance by M&B

M&B has made a strong start to FY19/20 with 2.6% lfl sales growth during Q1. The positive momentum was led by both the food and drinks businesses, despite strong comparables, wet weather conditions and uncertain consumer demand considering recent elections and economic conditions in the UK. We expect the momentum to continue in the remainder of the financial year and, hence, will raise our sales estimates.

Companies: Mitchells & Butlers

10 Oct 16

William Hill in talks to merge with Canadian online gaming company Amaya

William Hill announced on 8 September that it was in talks with Canadian online gambling group Amaya, about a potential all-share merger, which would create a £4.6bn betting giant. The deal would be structured as a reverse takeover, with William Hill, the smaller of the two companies, taking over Amaya. Amaya is a pure online player, producing gaming products and services including poker, sportsbook and lotteries. It acquired in 2014 the parent company of PokerStars and Full Tilt Poker, for $4.9bn, which makes it the world’s biggest traded online gaming company. Talks came after William Hill rebuffed a £3bn bid from 888 and Rank Group earlier this year, aiming at creating the biggest UK bookmaker.

Companies: William Hill

27 Jun 18

Two perfect strikes

Bowling, alongside low-cost gyms, is the strongest sub-sector of Leisure at present. Its fortunes have been revived over the last 5 years through product diversification, investment and a more family focused offering which is resonating with consumers seeking value and experiential treats. The sector is well established accounting for 3% of the family leisure market. We are attracted by its positive growth dynamics and minimal exposure to rising costs. We explore 6 themes in this note and initiate coverage on Hollywood Bowl (Buy; 250p 12m TP) and Ten Entertainment (Buy; 315p 12m TP), albeit with current year EPS forecasts 4% below consensus, reflecting recent prolonged hot weather concerns. On a 1-3 year view both have plenty of scope to further enhance shareholder value through self-help and site expansion.

Companies: Hollywood Bowl Ten Entertainment Group

11 Jan 19

THE MONTHLY January 2019

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. 2018 was a difficult year; however, the index still outperformed its comparative London indices, falling 10.0% to 393.2, compared with -13.0% and - 18.2% for the Allshare index and the AIM index, respectively. Furthermore, several (17) companies in our index increased their capital base – 15 of our 50 constituents raised new funds, two issued shares as part consideration for acquisitions, and two had share buybacks – all factors that influence the performance of the index. Even allowing for both capital increases and share buybacks, the 12.5% fall in the index still represented a modest outperformance compared with the decline in the Allshare index. With active industry consolidation, shareholder returns remain attractive.

Companies: OPM AVO AGY APH ARBB AVCT BUR CLIG DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PCA PHP REDX SCE SIXH TRX TON VAL VTA

05 Feb 19

THE MONTHLY February 2019

This Investment Research Paper addresses the issue of renewable power generation in the UK and in mainland Europe, which – after the deep-seated financial crisis of 2008/09 and the ensuing recession – now has better prospects of achieving critical mass. It also considers investment perspectives.

Companies: OPM AVO AJB AGY ARBB AVCT DISH BUR CLIG CSH DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PCA RE/ REDX STX SCE SIXH TRX TON VAL VTA W7L

09 Oct 18

Arena Events Group plc Investor Overview

07 Nov 19

Investor Update: AFC Energy's HydroX-Cell 'performs well' against rival PEM technology

16 Apr 18

Executive interview - PPHE Hotel Group

08 Oct 19

Air Partner (AIR) H1 results October 2019

21 Feb 18

Veltyco Group (VLTY) ShareSoc presentation February 2018

24 Sep 19

Investor Update: TUI delivers solid fourth quarter update

09 Dec 19

Executive interview - bet-at-home at EKF 2019

23 Sep 19

Investor Update: Thomas Cook enters compulsory liquidation

07 Dec 17

Capital Network's Ed Stacey on Stride Gaming PLC

09 May 19

Elegant Hotels Strong demand and an increase in rating

Premium

10 Dec 18

Executive interview – Bet-at-home

10 Apr 19

Arena Group plc (ARE) FY results to 31st December 2018

11 Nov 19

AFC Energy’s Adam Bond discusses ‘key competitive advantage’ and revenue potential

01 Apr 19

CEO Video - Richard Darwin, The Gym Group

Premium

04 May 18

DP Poland - Trading Update

Latest Content

Online leads to a good finish to 2019

GVC

17 Jan 20
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Online leads to a good finish to 2019

GVC

17 Jan 20
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Morning Note – 15 January 2020

Revolution Bars Group (RBG): Corp

Revolution Bars Group

15 Jan 20
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Morning Note – 15 January 2020

Revolution Bars Group (RBG): Corp

Revolution Bars Group

15 Jan 20
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Small Cap Feast

FDEV ATQT TEG ERIS FRAN IMMO AURA AMS MBH SSTY

15 Jan 20
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Small Cap Feast

FDEV ATQT TEG ERIS FRAN IMMO AURA AMS MBH SSTY

15 Jan 20
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The passenger number fell slightly in December

Whereas Network airlines continued seeing rising passenger numbers (+2.5% to 7.45m), Eurowings saw the number dropping by 7.9% to 2.41m. However, both divisions improved their SLFs (+2.6pp to 81.2% and +1.0pp to 79.1%, respectively). However, a budget airline with a lower SLF than an incumbent one suggests that Eurowings’ profit problems are far from having been solved. Unfortunately, Lufthansa will no longer release these numbers on a monthly basis.

Deutsche Lufthansa

13 Jan 20
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The passenger number fell slightly in December

Deutsche Lufthansa

13 Jan 20
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LIBERUM: City Pub Group* - Strong growth, despite subdued Christmas trading

City Pub Group

13 Jan 20
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LIBERUM: City Pub Group* - Strong growth, despite subdued Christmas trading

City Pub Group

13 Jan 20
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Christmassy performance by M&B

Mitchells & Butlers

09 Jan 20
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Christmassy performance by M&B

Mitchells & Butlers

09 Jan 20
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De facto stagnant Q1 burdened by weak performance in North America

The seemingly satisfying Q1 results lost their attraction without the contribution of the better-than-expected Rugby World Cup. Sodexo sees a softer Q2 but still retains its FY guidance.

Sodexo

09 Jan 20
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De facto stagnant Q1 burdened by weak performance in North America

The seemingly satisfying Q1 results lost their attraction without the contribution of the better-than-expected Rugby World Cup. Sodexo sees a softer Q2 but still retains its FY guidance.

Sodexo

09 Jan 20
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Solid interims - roll out to continue into next year

The Fulham Shore Plc (“FUL”) released interim results for the 6m period ended 29 September 2019 in-line with expectations as strength in the Franco Manca portfolio more than offset weather-related contraction at The Real Greek. We make minimal changes to our underlying forecasts and introduce a forecast for 2021. Nine restaurants have been opened so far in this financial year (year end March 2020) and the Company is now guiding a further eight to ten in the next financial year. We note that the financials now incorporate IFRS 16 for Leases which came into effect on January 1 2019. IFRS 16 does not impact cash balances but does lead to some material changes to the presentation of the financial statements.

Fulham Shore