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.

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 FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM

23 Jul 19

Quarterly Research Outlook - Summer 2019

In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.

Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF

27 Aug 19

Foreign buyers gorging on UK stocks

Like whales feasting on Krill, overseas firms are today stuffing themselves silly with choice fillets of corporate Britain. Why? Well look no further than geopolitical tensions and Brexit, which have disproportionately impacted UK equities and the £. Indeed the FTSE100 has lagged the S&P500 by a hefty 19% over the past 2 years, with Sterling dropping to 34 year lows vs US$ (see below). That said to us, based purely on fundamentals, this period of underperformance appears over-cooked, leaving many quality British companies vulnerable to predatory interest.

Companies: VOD AV/ AGK CHG CNA ITV BRBY SMIN CTEC SXS OXIG MGAM IMI WEIR WMH KMK EYE GATC ULS INS ALFA RDT TSTL ELCO MBH BLTG IHC 9537 CSRT NBI

11 Sep 19

LIBERUM: DP Eurasia* - A robust H1 gives confidence for the FY’19

Interims (1H’19) show a strong top-line and EBITDA performance with these two metrics growing 26.4% and 15.1% respectively. Turkey (c.83% of Group EBITDA) has delivered a very strong result considering inflationary backdrop with EBITDA margins rising 30bps to 10.7% in the half.

Companies: DP Eurasia

03 Sep 19

THE MONTHLY September 2019

The challenges associated with value creation drive all investors. Any investment professional is eager to make their mark by picking organisations that are able to deliver superior returns. Increasingly investors look into how organisations are governed and how effective the top decision-making bodies of organisations really are. In this white paper, we shed light on research findings and reveal the seven hallmarks of effective boards. The seven hallmarks are proven to create more effective boards and are set to be the next lever in the value creation process. Better Boards has created advanced board evaluation tools designed to motivate and inspire and above all, contribute to superior value creation.

Companies: AVO AJB AGY CLIG DNL DPP FLTA GTLY GDR KOOV MUR NSF OXB PCA PHP RE/ RMDL STX SCE TRX TON SHED VTA W7L

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

01 Aug 19

THE MONTHLY August 2019

The introduction of IFRS 2 in 2004 generated considerable debate about the best approach for handling ‘share-based payments’ (SBP). While it is clearly a cost to shareholders, which should be included in the statutory reporting lines through the P&L account, the question arose as to whetherit should be part of our underlying EBIT calculation.

Companies: AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR KOOV MCL MUR NSF OXB PCA PHP RE/ REDX RMDL STX SCE TRX TON SHED VAL VTA W7L

09 Sep 19

LIBERUM: Air Partner* - Encouraging H1 pre-close update

H1 trading has been slightly better than anticipated since the last update. Management now expects the current year’s performance to be evenly weighted between H1 and H2, rather than the H2 weighting anticipated at the AGM update at the end of June.

Companies: Air Partner

30 Jun 16

AIMing for income

So what is the profile of a typical AIM quoted company? The market’s detractors may argue that London’s junior market is peppered with cash consuming companies that are not sufficiently advanced in their route to profitability nor corporate governance regimes to justify their listing. Supporters of the London Stock Exchange’s growth market would say that the Alternative Investment Market is the world’s most successful market for growing companies rewarding investors prepared to brave the risks of earlier stage funding, and driving innovation and job creation. Neither view suggests that AIM would be a fertile hunting ground for income generating stocks. However a glance at the FTSE AIM All Share constituents (Source: Fidessa) suggests that over 250 of its members or circa a quarter of the market’s members pay dividends.

Companies: BVXP BOTB ITQ SHOE CGS DX/ HSP JIL IBEX PRP CAML GTC JIM CCAP ENTU FXI NAH ASY HGM PEN PEG AVG NXR

29 Sep 16

N+1 Singer - Small-cap quantitative research - Consistent growth screen refresh + “11 with legs”

We have performed a second refresh of our consistent growth screen, first established with our research note of 17 December last year. As previously, the screen produces a basket of 25 stocks that exhibit not only good growth in EPS and sales, but also a consistency of growth in both measures each year. This basket, or style, has underperformed the small-cap benchmark by 9.1% since inception last December, and by 4.8% since the last refresh on 13 April. We highlight stocks leaving and joining the basket and take a closer look at 11 stocks “11 with legs” in the refreshed screen. We will continue to monitor performance of the basket and refresh it again in about 4 months’ time, but interestingly, consistent growth is beginning to look like consistent underperformance!

Companies: TRI IOM DOTD CAMB SFE TPFG TRCS INSE TAST MAB1 RWA

22 Jan 18

UK Gambling

UK papers reporting over the weekend that newly appointed Secretary of State to the Department of Culture, Media and Sport (DCMS) is in favour of a £2 maximum stake on category B2 machines in betting shops.. Papers referencing “overwhelming response has persuaded them to reduce the maximum stake to £2.” The consultation on B2 stakes will conclude tomorrow 23 January 2018 and where we weren’t expecting a final decision on the matter for c. 6 – 8 weeks after the end of the consultation period. It is possible the final decision could be brought forward sooner after the conclusion of the consultation period tomorrow.

Companies: GVC LCL WMH PTEC FLTR

21 Aug 18

Off to the races as NFL season draws closer

The US sports betting market has the potential to be significantly large. However, lack of federal level legislation, sluggish state by state legislative processes, and other limiting factors will cause a likely drag on the sport betting market’s full potential. The American Gaming Association estimates at least $150bn is wagered annually with offshore books, which implies a $10bn - $12bn revenue market. We estimate, onshore online sports revenue in 4 - 5 years of $6bn (table 6, p14) should be achievable across 25 States where Daily Fantasy Sports is legal in 22 states, if we include California, implies a market as large as $7.5bn in revenue. UK listed operators not necessarily only winners as US operators, Stockholm listed and some private companies make early inroads. Sports betting live in New Jersey, Mississippi, Delaware and Nevada, with West Virginia and Pennsylvania expected to follow soon.

Companies: GVC WMH FLTR PTEC SPO 888 GAN NKTN KAMBI GIG SGMS IGT

30 Oct 18

Autumn Budget ~ clarity on timing and scale

Chancellor revealed in the Autumn Budget yesterday the timing of implementing the lower £2 limit on B2 machines (FOBTs), effective October 2019. Simultaneously, Remote Gaming Duty (RGD) or Point of Consumption Tax on online gambling will increase from a current 15% of gross gaming revenue to 21% of gross gaming revenue. Though the news of an increase was widely known, timing and scale of increase was unclear, so Oct 19 is a good balance between fiscal years 19/20 and 20/21 and gives operators time to prepare. Given the new information we now adjusted our forecasts, for the final quarter of FY19e and for FY20e with new price targets attached.

Companies: GVC WMH FLTR

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 FLTR

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 JPJ OPAP PTEC RNK WMH

09 Oct 18

Arena Events Group plc Investor Overview

01 Apr 19

CEO Video - Richard Darwin, The Gym Group

Premium

10 Apr 19

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

15 May 18

Interim Results Update for 6 months to 28th February 2018

04 May 18

DP Poland - Trading Update

03 Apr 18

DP Eurasia N.V CEO - Aslan Saranga

Premium

13 Dec 18

DP Poland - Corporate update

27 Mar 18

DP Poland - Full Year results for the year to 31 December 2017

27 Jun 19

Greene King - Preliminary results video 2018/19

29 Jan 18

DP Poland - Trading Update

12 Dec 18

DP Poland - Trading update

29 Nov 17

Ten Lifestyle Group - Investor Overview

29 Apr 16

Minerva Research Labs - ELITE at London Stock Exchange

17 Nov 17

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

07 Dec 17

Capital Network's Ed Stacey on Stride Gaming PLC

Latest Content

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Small Cap Feast

AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019

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17 Sep 19
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OPAP

OPAP - New products and cost containment drive profits

OPAP’s Q219 results showed improving sequential trends across all divisions. Gross gaming revenues (GGR) increased 6.5% to €383.6m, driven by a 54.2% increase in video lottery terminals (VLT) GGR and a better lottery performance. After a temporary suspension, the VLT roll-out is now back on track. Alongside the new products, OPAP is successfully containing costs, which contributed to a c 30% increase in net profit. Net debt/LTM EBITDA is only 0.9x and strong cash generation leads to a consistently high dividend payout. OPAP trades at 7.7x EV/EBITDA and 14.6x P/E with a very attractive 9.4% dividend yield for FY20e. OPAP is currently subject to a tender offer by Sazka Group, at €9.12/share.

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13 Sep 19
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Deutsche Lufthansa

Passenger growth again good in August

Our current volume projections see the number of passengers increasing by 2.3% to 145.6m in 2019. We expect Network to increase its number by 3.3% to 107.3m but Eurowings’ to fall by 0.5% to 38.3m.

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12 Sep 19
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OPAP

VLTs lead Q2 19, but momentum remains questionable

OPAP reported mixed Q2 19 numbers – revenue beat street consensus marginally while EBITDA came in lighter than estimates. The VLT segment once again drove growth, more than offsetting the weakness in the Betting and ‘Instant & Passives’ segments. Lottery reported a decent showing. In addition, the recent issue regarding VLTs has now been resolved and the VLT rollout has restarted in Q3. Following the softer than expected (vs AV estimates) top-line performance, we will be cutting our estimates marginally.

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12 Sep 19
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DP Eurasia

LIBERUM: DP Eurasia* - A robust H1 gives confidence for the FY’19

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11 Sep 19
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ACP BOTB IOG

Morning Note – 11 September 2019

Armadale Capital (ACP): Corp Mahenge Liandu project update Armadale | Best of the Best (BOTB): Corp Reassuring AGM update on all fronts | Independent Oil & Gas (IOG): Corp Harvey appraisal well update

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11 Sep 19
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Arena Events

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

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10 Sep 19
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bet-at-home.com

bet-at-home - A closer look at German regulation

Online gaming legislation varies widely across Europe and bet-at-home (BAH) focuses predominantly on grey (or ambiguous) markets. At H119, the company’s core markets were Germany (35% of gross win), Austria (c 30%) and Eastern Europe, and this report provides further detail on recent regulatory changes (particularly in Germany). BAH is a strong brand with 5m customers, a capital light model and high cash generation. The stock trades at 9.9x EV/EBITDA and 13.0x P/E for FY20e with an attractive 9.6% prospective dividend yield.

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10 Sep 19
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Air Partner

LIBERUM: Air Partner* - Encouraging H1 pre-close update

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09 Sep 19
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PPHE Hotel Group

Returns from investment programme growing

PPHE has completed a multi-year, extensive £100m+ hotel investment programme in the UK and Netherlands and the benefits are already being seen. H1 like-for-like RevPAR was up +7.5% driven by average room rate +4.8% and occupancy up 200 bps to 76.8%. While Croatia is seeing an increase in competition, this is offset by the strength of the UK (supported by the continued devaluation of Sterling) and the Netherlands. We leave our PBT forecasts unchanged but upgrade our target price to 2239p (29% upside) reflecting the latest, higher, independent valuation.

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