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.

Leisure, Tourism & Travel

Explore the 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.

15 Nov 18

GVC Holdings - Parliamentary U-turn

Following the resignation of Sports Minister Tracey Crouch, the UK government has bowed to pressure to bring forward the reduction in FOBT stake limits, from October 2019 to April 2019. The planned increase in remote gaming duty (from 15% to 21%) will also commence in April. We reduce our FY19 EBITDA by a further £95m and net debt/EBITDA now peaks at 3.0x in FY19. Our FY20 estimates are broadly unchanged.

Companies: GVC

15 Nov 18

Gaining Market Share but Costs Rising

Dart Group has released strong interim FY19 results, citing a particularly strong season for Leisure Travel, which contrasts well with weaker commentary from peers in recent weeks. Cost pressures are rising which will impact margins but we see attractions in the Group’s strategy, attractive package holiday offering and approach to customer service. Maintain buy.

Companies: Dart Group

23 Oct 18

Quarterly Research Outlook

The June IPO of Knights Group Holdings, a Top-100 regional law firm, marked the fifth entrant to the burgeoning UK-listed legal sector. Following recent expansion of our coverage across all five listed legal firms, complemented by coverage of three broader support services peers with exposure to the sector, we revisit and build upon our views on this rapidly evolving sector.

Companies: ARS GTLY GENL KEYS KGH MNO RBGP TWD 7DIG ABBY AMS AMER ANX ARS ATYM AVON BLVN PIER CGS CAML CALL CSRT TIDE DTG DEMG ELM EMR FPM FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KGH LAM MACF MNO MKLW NAH OXIG PCA PKG CAKE PDG RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF

19 Nov 18

Share & share alike

Following the gyrationsin October, we have continued to see further volatility this month. While some of the factors that unnerved investors have receded, Brexit concerns dominate, with the eventual outcome still unclear. At home, the reporting season has proved variable with both notable ‘risers and fallers’. The flow of announcements continues, although things may quieten down, ahead of the festive season. Undoubtedly the progress of the Brexit deal is key. In Share News & Views we comment upon AdEPT, Burford Capital, Carrs, Codemasters, Cropper*, DCC, Marshall Motor, Norcros and Wincanton.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN W7L

06 Nov 18

THE MONTHLY November 2018

In addition to Hardman’s monthly analysis of client stocks, the thorny issue of market disruption – a popular theme currently - is also addressed. In a wide-ranging article, Hardman’s utilities analyst, Nigel Hawkins, assesses the impact that market disruption has already made. In some sectors, notably telecoms and aviation, market disruption has been apparent for many years, as the rise of Vodafone, Ryanair and easyJet demonstrates. However, in some sectors, such as oil and housebuilding, structural changes have been modest – the dominance of the big players endures. For investors, there is real interest in those sectors where changes are underway. The UK groceries market, which may shortly become a duopoly, is a case in point. And, intriguingly, who knows if there is a company currently languishing in AIM, which will attain a £50bn market valuation within the next decade?

Companies: OPM AVO AGY APH ARBB AVCT DISH BNO BUR CMH CLIG CSH DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PHP RE/ REDX SCE SIXH TON VAL VTA W7L

16 Nov 18

U-turn on £2 FOBT stake and RGD effective date

Government will bring forward the timing of implementing the lower £2 limit on B2 machines (FOBTs), now effective April 2019. Simultaneously, Remote Gaming Duty (RGD) or Point of Consumption Tax on online gaming will increase to 21%, April 2019 (it excludes online sports betting and betting on racing online). It puts operators under pressure to bring forward their own rightsizing plans for their shop estates, with four and a half months remaining before the effective date. We adjust our forecasts for FY19e, given the new effective date, with new price targets attached.

Companies: GVC WMH PPB

12 Nov 18

Trading since 30 June

Management reported that overall performance since 30 June is consistent with performance seen at the time of the half year results, reported on 23 August. B2B Gaming in line with trends reported at half year and Asia has stabilised at an annual run-rate of €150m. In B2C Gaming, momentum in Snaitech has continued into in the 2H18. TradeTech continued to display positive moment in the 2H18, though market movements favoured customers in September and October. Plus500 shares sold and €530m bond offering completed.

Companies: Playtech

20 Nov 18

FY19 should be more challenging

easyJet reported unsurprising results for FY18, in line with our expectations and the consensus. The number of passengers was up by +10.2% yoy to 88.5m and the company showed a record load factor of 92.9% (vs. 92.6% in FY17). This pushed the revenue to rise by +16.8% yoy, while revenue per seat grew by +6.4% yoy to £61.94. Headline costs per seat were up by +5.3% to £43.43 and non-headline costs were £133m (£40m related to Tegel, £65m for IT development). This led to a profit before tax of £578m (+41.4% yoy), per seat: £6.07 (+28.7% yoy). The proposed dividend was higher than our expectations: 58.6p (vs. 40.9p in FY17).

Companies: easyJet

21 Nov 18

Stride Gaming - Strong cash flow and special dividend

Stride’s FY18 results statement was dominated by the impact of recent regulatory news, as well as by the decision to significantly increase cash payouts. Our FY19 estimates now reflect a £7.1m fine for procedural failings (vs £4m previously), as well an additional five months of higher remote gaming duty (RGD), which equates to a one-off hit of £2.5m. None of this affects FY20 and, given Stride’s competitive positioning, we believe it should achieve market share gains and we raise our FY20 EBITDA from £14.5m to £16.0m. A special dividend of 8p has been announced, and going forward, Stride intends to pay out at least 50% of adjusted net earnings. The stock has bounced from its lows, but still trades at 5.0x EV/EBITDA and 8.0x P/E for CY19e.

Companies: Stride Gaming

12 Jul 18

Bullseye! – Substantial FY19 Upgrades

Dart Group reported FY18 results in line with our expectations. However, the Group points to strengthening demand year-to-date supporting Group expectations for PBT to “substantially” exceed current market expectations. We therefore adjust FY19 earnings forecasts, resulting in near 60% upgrades and reiterate our buy rating.

Companies: Dart Group

20 Sep 18

AIM MARKET UPDATE June, July, August 2018

AIM showed no signs of a summer slowdown with three strong months with regards to total funds raised (new and further issues). June, July and August averaged over £700m per month, boosted by a particularly strong June which delivered 14 IPOs (historically AIM has 5-6 new joiners per month). Through the end of August 2018, the total amount raised (new and further issues) of £4.80bn is +15% on the same period in 2017 which itself was the best year since 2007.

Companies: CDM LOOP YEW BLOE AQX SAE ANX TGP INX CBOX MIND KGH RAI TGL YCA IMMO DGOC NUC OVB TWD CNIC

31 Oct 18

Cenkos: Arena Events Group Plc - Completion of TGP Acquisition

Arena has announced the successful completion of the TGP acquisition in Dubai, following the company's recent capital raise (Aug-18). In completing the deal, the terms were renegotiated to include the acquisition of TGP's office and warehouse property, as opposed to a sale-and-leaseback originally. The additional consideration for the property is £3.4m which will be paid in three equal amounts ending Jan-20. We upgrade our FY19E adjusted EBITDA by 2% due to the rental savings achieved. The growth prospects for Arena remain intact, with the stock now trading on a FY19E EV/Adj EBITDA of 6.1x. BUY.

Companies: Arena Events

20 Sep 18

GVC Holdings - Strong growth amid integration

GVC has announced a strong set of H118 results, with pro-forma net gaming revenues (NGR) increasing 8% to £1,717m, driven by an impressive 18% growth in Online. The integration of Ladbrokes Coral is on track, with an additional £30m capex synergies identified. GVC is now a leading player in the global gaming market and is well placed to continue gaining share across all its key territories. M&A are likely to remain a feature and there is significant potential upside from the US, which is not in our estimates. The stock trades appropriately towards the top of its peer group, at 10.3x EV/EBITDA and 13.5x P/E for 2018e.

Companies: GVC

21 Sep 18

Cenkos: Tasty Plc - Efficient Capital Allocation

Tasty plc has announced its interim results for H1/18A. Revenue declined 5.7% YoY to £23.0m. The company continues to focus on its performing estate, whilst adapting its strategy in the face of unfavourable trading conditions. Management is maintaining focus on keeping its food offering relevant and reducing its cost base, whilst pushing forward with initiatives to fully understand its customer and strategic marketing opportunities. Given the uncertain outlook and lack of formal guidance we maintain our Hold recommendation.

Companies: Tasty

26 Sep 18

Stride Gaming - Focusing on synergies and strategic growth

Stride’s FY18 trading update confirms the widely reported headwinds facing the UK bingo-led market, with a c 3% decline in real money gaming (RMG) in H218. More positively, FY18 RMG EBITDA appears to be in line (or slightly better) than our recently reduced estimate. Importantly, Stride’s high-margin proprietary platform is a key differentiator and the company remains well placed to gain market share. The balance sheet is strong and we expect strong cash flow through synergies and strategic growth. The stock has fallen 60% this year on the back of downgrades and a UKGC fine (which appears to be c £4m) and now trades at depressed levels of 5.8x P/E and 3.3x EV/EBITDA for CY19e.

Companies: Stride Gaming

09 Oct 18

Arena Events Group plc Investor Overview

04 May 18

DP Poland - Trading Update

17 Nov 17

Celebrating Domino's Pizza's 50th store in Poland

07 Dec 17

Capital Network's Ed Stacey on Stride Gaming PLC

18 Sep 18

DP Poland - H1 2018 results

29 Nov 17

Ten Lifestyle Group - Investor Overview

21 Feb 18

Veltyco Group (VLTY) ShareSoc presentation February 2018

01 Nov 17

Greenland Gas & Oil - Update from 121 Oil and Gas, London

22 Jul 15

Trading Update - Strong first half, momentum continuing into H2

18 Sep 17

DP Poland - Half Year Results 2017

16 Apr 18

Executive interview - PPHE Hotel Group

19 Jul 17

DP Poland - Update on Store Performance H1 2017

29 Jan 18

DP Poland - Trading Update

15 Jun 17

DP Poland - New commissary approaching completion

02 Jun 17

Capital Network's Ed Stacey on AFC Energy

Latest Content

Stride Gaming

Stride Gaming - Strong cash flow and special dividend

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21 Nov 18
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easyJet

FY19 should be more challenging

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20 Nov 18
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AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN W7L

Share & share alike

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19 Nov 18
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AVONIQEMKSDTGAFHPABDPCDMMMHRREGVCPTEC

GVC WMH PPB

U-turn on £2 FOBT stake and RGD effective date

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16 Nov 18
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GVC

GVC Holdings - Parliamentary U-turn

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15 Nov 18
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Dart Group

Gaining Market Share but Costs Rising

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15 Nov 18
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J D Wetherspoon

Good Q1 performance; cost pressure a concern

It was a good quarterly performance but management’s outlook of weaker trading performance in FY18/19 has spooked investors. The outlook is a bit below our estimates but the company still remains well-placed among the branded publicans in the UK. We have reduced our earnings estimates but have assigned a premium in the relative valuation to factor in JDW’s strong position due to high reliance on drinks and ‘best-in-class’ prices in the country. No change in the stock recommendation.

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13 Nov 18
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Elior Group

Plan to separate out its concession catering business

Elior has confirmed the rumour that it will review the group’s strategic plan, which could result in a separation of its concession catering business.

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13 Nov 18
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NH Hotel Group

No further change yet related to MINT

Q3 revenue came in at €412m (+2.9% yoy, +5.0% at constant exchange rates), and recurring EBITDA was up 7.6% to €72m, both in line with consensus expectations. The expected weak performance in Spain has been fully offset by the strong growth in Benelux and Italy. Recurring net income was €28m, above consensus, mainly helped by the lower financial costs due to a reduction in debt. NH’s management has started to work with Minor (the new owner with 94.1% of the share capital) to define the new Strategic Plan. Outlook FY18 NH confirmed its FY 18 EBITDA expectation of €260m and upgraded its net financial debt ratio target to 0.8x-1.0x vs. 1.0x-1.2x previously.

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